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2013 (12) TMI 246 - AT - Income TaxValidity of reopening of assessment u/s 147 - Held that:- The assessment was reopened on the reasons recorded in the A.Y. 2005-06 that receipts in pursuance of offshore services contract are in the nature of royalties and in pursuance to the contract for deputation of specialists and offshore training contract are in the nature of fees for technical services - The assessment order of AY 2005 -06 stood merged with the order of the CIT[A] - The principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities - The AO has given appeal effect to the order of the Ld. CIT(A) prior to the date of issuing notice u/s. 148 of the Act - As the entire reopening was based on what happened in assessment year 2005-06 that very basis being struck down by the first appellate authority, there was no reason before the AO to believe that the income has escaped assessment - On the date of the issue of notice u/s. 148 of the Act, the AO was very much in possession of the First appellate order and the very reasons for reopening the assessment did not survive by virtue of the findings of the First appellate authorities which were binding upon the AO - Decided in favour of assessee.
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