Allowing the petition the Court held that  it was evident that the assessee had claimed exemption with respect to long-term capital gains under section 54, in his return filed for the assessment year 2009-10. Before the assessment was completed, the assessee was called upon to furnish evidence in support of his claim for deduction under section 54. The case was later selected for scrutiny and a notice was issued under section 143(2) . Details were called for and explanations were offered on behalf of the assessee. Thereafter, an assessment order was passed granting the deduction. There was true and full disclosure of all materials required for assessment by the assessee for claiming deduction. Therefore, on this issue, the respondent could not proceed to pass an order under S.  147 treating the gains from sale of house property in Mumbai as short-term capital gains. The order was not valid.( AY.2009-10)