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[2008] 306 ITR 142 (MAD.) HIGH COURT OF MADRAS Commissioner of Income-tax v. Abdul Rahman Sait P. D. DINAKARAN AND P.P.S. JANARTHANA RAJA, JJ. T.C (A) NO. 1026 OF 2007 JULY 10,2007 Section 147 of Income-tax Act, 1961 - Income escaping assessment - General Adoption of certain value for property for computing capital gain which value is different from value adopted for wealth tax purpose, would not justify reopening of assessment Where reassessment notice was issued to the assessee on the ground that the long-term capital gains arising from the sale of the assessee's property was incorrectly computed, because the value as on 1-4-1981, adopted on the estimate of Rs. 6 lakhs for arriving at the indexed cost of acquisition was not supported with any evidence and in consonance with the fair market value declared by the assessee in the return of wealth filed by him for the assessment year 1989-90. Held that it was not the case of the assessee that he had produced the account books and other evidence from which material evidence could have been discovered by the Assessing Officer, with due diligence, but on the other hand it was the case of the assessee that the Assessing Officer had accepted the returns based on the materials placed before him and passed an order of assessment under the Income-tax Act as well as the Wealth-tax Act and thereafter, by change of opinion with reference to the valuation method adopted, proposed to reopen the assessment. The value of the property adopted by the assessee for the purpose of wealth-tax did not stop him from contending otherwise in the proceeding for calculating tax on capital gains because adoption of certain value for wealth-tax purpose cannot be made the basis for working out the capital gains, particularly when the valuation of the property admitted by the assessee in the income-tax return and the wealth-tax return were accepted by the Assessing Officer and, therefore, there could not be any reassessment based on mere change of opinion by the Assessing Officer. N. Muralikumaran for the Appellant. JUDGMENT P.D. Dinakaran, J.-The appeal has been preferred by the Revenue against the order dated August 4,2006, made in I. T. A.…

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