The Assessing Officer cannot reopen an assessment based solely on a change of opinion; valid reasons must exist to believe that income has escaped assessment.

JUDGMENT :

BHARGAV D. KARIA, J.

1. Heard learned advocate Mr. Manish Shah for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for the respondent.

2. Learned advocate Mr. Manish J. Shah has tendered the draft amendment. The same is allowed in terms of the draft. To be carried out forthwith.

3. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of rule on behalf of the respondent State.

4. Having regard to the controversy involved which is in a narrow compass, with the consent of learned advocates for the respective parties, the petition is taken up for hearing today.

5. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 28.03.2021 issued under section 148 of the Income Tax Act, 1961 (For short “the Act”) for Assessment Year 2016-2017.

6. Brief facts of the case are that the petitioner is an individual and regularly assessed at PAN:AEZPP9756P under the Act.

7. For the Assessment Year 2016-2017, the petitioner filed the original return of income on 29.03.2017 declaring total income of Rs.34,32,466/-.

8. Thereafter, the case of petitioner was selected for scrutiny assessment, and accordingly, notice under section 143(2) dated 26.09.2017 was issued to the petitioner for limited scrutiny.

9. Thereafter, notice under section 142(1) of the Act dated 13.06.2018 was issued on the petitioner, asking for certain details, which include the details of nature of business, computation of total income and financial statements for Asst. Years 2015-2016 and 2016-2017. Another notice under section 142(1) dated 09.08.2018 was issued on the petitioner, asking him to furnish the details regarding source of investments at point no.1, copy of sale deed of property yielding capital gain at point no.3, details with regard to sale consideration received on sale of property at point no.4 and details with regard to other income from the properties disclosed in the return of income at point no.5.

10. In response to aforesaid notices, the petitioner through his Chartered Accountant, by his letter submitted on 03.08.2018 furnished the information sought for, which included the details with regard to sale of agriculture land at Revenue Survey No.370, Moje Vesu, Surat and purchase of agriculture lands, narrating particulars of land, share of petitioner in land, consideration paid towards purchased of land and corresponding exemption claimed under section 54B of the Act. Thereafter, the petitioner received further notice under section 142(1) dated 10.09.2018 from the then Assessing Officer asking to provide justification and details with regard to claim of deduction made under section 54B of the Act. In response to the said notice, the petitioner through his Chartered Accountant furnished the details called-for vide letter dated 17.09.2018. Subsequently, the petitioner once again received notices under section 142(1) dated 16.10.2018, 17.10.2018 and 18.10.2018 calling for certain further details vide point no.(i) to (iv). The petitioner through his Chartered Accountant furnished copies of 7/12 and 8A extracts of agriculture land situated at Block No.370, Moje Vesu, Surat vide letter submitted on 24.10.2018. Subsequently, in response to notice dated 18.10.2018, the petitioner through his Chartered Accountant by a letter submitted on 21.11.2018 furnished explanation/ details in respect of transaction of sale of land and claim of deduction under section 54B. Thereafter, certain further details have been submitted by the petitioner through his Chartered Accountant by a letter submitted on 24.11.2018, which include the details with regard to purchase of agriculture land. Ultimately, the Assessing Officer, after carrying out thorough examination of transactions of sale of land and deduction under section 54B, framed the assessment by passing assessment order under section 143(3) dated 06.12.2018 , wherein he has accepted the returned income of th