During the original assessment proceedings the Assessing Officer has asked specific  query regarding  sale surrender and allotment of new flats and claim u/s 54 of the Act. The assessment was completed u/s. 143(3) of the Act.   The Assessing Officer in the reasons for the re-opening stated  that he is of the opinion that there has been escapement of income, on perusal of revised return of income filed, ledger of profit on surrender/allotment of new flats, details filed and submission made by the assessee that the transfer of capital assets has been effected by way of exchange in this case and as per assessees calculations.  On writ allowing the Court held that  it is clear that the primary facts necessary for assessment were also disclosed. It is settled law that the Assessing Officer is not entitled for change of opinion to commence proceedings for reassessment. It is also settled law that when on consideration of material on record, one view is conclusively taken by the Assessing Officer, it would not be open to reopen the assessment based on the very same material with a view to take another view. Court also held that Revenue cannot improve upon the reasons in its oral argument or affidavit in reply. Relied on First Source Solutions Ltd. v. ACIT (2021) 438 ITR 139/ 132 taxmann.com 121(Bom)(HC). Reassessment notice and order disposing the objection was quashed.   (WP. No. 3415 of 2019 dt.  25-12-21) (AY. 2014-2015)

Sanjay Devkinandan Gupta v. UOI (Bom.)(HC) (UR)