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2014 (2) TMI 86 - ITAT MUMBAIValidity of Re-Assessment order – Addition made on labour charges - Held that:- From the contents of letter filed by the assessee disputing the initiation of re-assessment proceedings that the assessee, at the time of making original assessment, filed requisite details of labour charges claimed by the assessee in the profit and loss account - Assessee also filed confirmation letters to whom labour charges were paid during the financial year relevant to the assessment year under consideration - Thus, assessee made full disclosure of the labour charges paid at the time of original assessment made by AO - assessee also deducted TDS on the job-work charges carried out by Shri Dhirubhai Sambhubhai Diyora and assessee filed TDS return with the department thereby disclosing relevant information - The decision in Gujarat Power Corpn. Ltd. V/s ACIT [2012 (9) TMI 69 - Gujarat High Court] followed - where the Assessing Officer during scrutiny assessment, notices a claim of exemption, deduction or such like made by the assessee, having some prima facie doubt raises queries, asking the assessee to satisfy him with respect to such a claim and thereafter, does not make any addition in the final order of assessment, he can be stated to have formed an opinion, whether or not in the final order he gives his reasons for not making the addition. Initiation of re- assessment proceedings cannot be said to be valid - the assessment made by AO cannot be said to be valid – Since the assessment order is not valid, the grounds of appeal taken by the department disputing deletion of the addition made by the AO do not require adjudication as the addition do not survive - Decided in favour of Assessee.
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