By K. B. Bhujle, Advocate
fiogf49gjkf0d
[Mrs. Pravin P. Bharucha Vs. Dy.CIT; 348 ITR 325 (Bom):]
For the A. Y. 2006-07, the assessee had claimed deduction u/s. 54EC of the Income-tax Act, 1961. On the request of the Assessing Officer, the assessee had filed the details of the investment u/s. 54EC. The Assessing Officer considered and allowed the deduction to the extent of Rs. 7.40 crore. Subsequently, the Assessing Officer issued notice u/s. 148 for withdrawing the deduction. Assessee’s objections were rejected.
The Bombay High Court allowed the writ petition filed by the assessee and held as under:
“i) While granting the benefit, the Assessing Officer took a view that investment made out of earnest money/advance received as a part of the sale consideration before the date of the transfer of the assets would also be entitled to the benefit of section 54EC. This view was possible, in view of Circular No. 359 dated 10-05-1983, and the decision of the Tribunal.
ii) The reasons recorded did not state that the deduction u/s. 54EC was not considered in the assessment proceedings. In fact, from the reasons, it appeared that all facts were available on record and, according to the Revenue, the deduction was only erroneously granted. This was a clear case of review of an order.
iii) The application of law or interpretation of a statute leading to a particular conclusion, cannot lead to a conclusion that tax has escaped assessment, for this would then certainly amount to review of an order which is not permitted unless so specified in the statute.
iv) The order disposing of the petitioner’s objections also proceeded on the view that there had been non-application of mind during the original proceedings for assessment. This was unsustainable and a fresh application of mind by the Assessing Officer on the same set of facts amounted to a change of opinion and did not warrant reopening.
v) In view of the above, the notice u/s. 148 is without jurisdiction and we set aside the same.”
