2000 (4) TMI 155

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.... charge his opinion for initiation of proceedings under s. 147 of the IT Act and consequently cancelling the assessment despite the fact that the original assessment was not completed under s. 143(3) but merely processed under s. 143(1)(a)." 2. The assessee was deriving income from salary, pension and interest income. The return was filed showing an income of Rs. 76,920 which was accepted under s. 143(1) on 23rd March, 1989. Later on while examining the wealth-tax records, it was noticed by the AO" that the assessee had sold 25 bighas of agricultural land at Khathipura within the municipal limit of Jaipur to M/s Indira Graha Nirwan Samiti for Rs. 7 lakhs in 1981. The land was transferred to the society through an agreement with the socie....

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....p;                     7,00,000 Less: Cost                              10,000                                      ---------                                 &nb....

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....see at the time of original assessment. The assessment was completed under s. 143(3) of the IT Act. All the relevant facts were in the knowledge of the AO. Under these circumstances, the AO is not competent to change of opinion for initiation of proceedings under s. 147 of the IT Act. This view is fully supported by a plethora of judicial pronouncements. After considering the submissions of the learned counsel of the appellant and the facts of the case, I am satisfied that the present reassessment is nothing but mere change of opinion on same set of facts. The present assessment order is therefore bad in law and illegal. The assessment order is, therefore, cancelled." 3. Against the above decision of the CIT(A) the Revenue is in appeal b....

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.... transfer has taken place, therefore no element of any capital gain can be taxed during the year under appeal. It was, therefore, submitted that no interference in the order passed by the CIT(A) is required. 6. We have heard the rival submissions of the parties and have perused the material available on record. Since the land was given possession in asst. yr. 1981-82 therefore, no capital gain arises in the asst. yr. 1988-89. We find support from the order of this Bench in the case of ITO vs. Smt. Shakuntala Devi Ajmera in ITA No. 909/Jp/1993, dt. 10th March, 2000, for asst. yr. 1988-89 where it was held by us as under: "We have heard the rival parties and have perused the material available on record. Keeping in view the facts of thi....