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AO couldn't reopen case on basis of conclusion drawn by another AO

February 5, 2019[2019] 102 69 (Bombay)

IT : Formation of opinion by another Assessing Officer on same set of documents and materials cannot give justifiable ground to Assessing Officer of present assessee to contend that there is additional information or material at his command permitting him to have a relook at situation and to resort to reassessment

• Assessee in its return had shown a receipt of on transfer of leasehold rights in a landed property in favour of one Morarji Textiles and after claiming indexed cost and other related deductions, offered a certain by way of capital gain arising out of such transfer. In scrutiny Assessing Officer did not disturb petitioner's treatment to said receipt - Assessing Officer of Morarjee Textiles had held that leasehold rights belong to Morarjee Textiles itself and therefore, Morarjee was wrong in claiming that it had purchased such rights from assessee - On basis of same, Assessing Officer observed that assessee had filled inaccurate particulars and, thus, income had escaped assessment and issue reassessment notice.

• The High Court held that what the Assessing Officer is attempting to do is to review his own conclusions formed during original assessment after full examination, with aid of not new or additional materials but on basis of conclusions of another Assessing Officer; which are based on same materials available during original assessment before him and, that it is wholly impermissible and quashed impugned notice

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