Gagan Omprakash Navani v. ITO (2022) 286 Taxman 668 (Bom.)(HC)

S. 147 : Reassessment-Capital gains-Profit on sale of property used for residence-Investment in six residential flats-Change of opinion-Reassessment is not valid. [S. 45, 54, 148, Art, 226]

Assessee claimed exemption under section 54 which was allowed. Thereafter, a notice under section 148 was issued to assessee on ground that documents relating to acquisition of new property showed that it related to six residential flats and since under section 54, exemption is not allowed if assessee purchases more than one residential house from capital gain accrued from sale, assessee was not eligible for section 54 exemption. On writ allowing the petition the Court held that the assessee had provided all evidences to justify that when he purchased flat, it was one residential unit and that issue of deduction under section 54 was a subject matter of consideration by Assessing Officer during assessment proceedings. Accordingly the reopening of assessment was quashed on the ground of change of opinion. (AY. 2016-17)