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2014 (12) TMI 384 - ITAT PANAJIValidity of notice for reopening of assessment u/s 148 – time for normal scrutiny u/s 143(3) was available and the A.O. - Held that:- as per Section 147 the AO is justified in issuing the notice u/s 148 and justified in making the assessment u/s144 - the Commissioner of Income tax has held that when the Assessing Officer can assess the income u/s. 143(2), it is not necessary to issue the notice u/s. 148 of the Act. But in the instant case, the Assessing Officer has not completed the assessment and pendency of the assessment order - The AO has issued the notice u/s 147 and made the assessment – thus, AO is justified in reopening the assessment as well as making the assessment u/s. 147 r.w.s. 144 - CIT (A) is not justified in action – the order of the CIT(A) is set aside – Decided in favour of revenue. Opportunity of being heard provided or not – Non-speaking order passed by CIT(A) - Amount paid to tenants to be deducted from sale consideration or not - Held that:- CIT(A) has allowed the claim of the assessee without passing any speaking order - the CIT(A) should pass the order with giving the reasons – the same has also been provided under the Instruction issued by the CBDT in Instruction No. 1592 dated 7.1.85 F. No.262/38/84ITJ - the requirement of giving reasons for an order derives its authority from the principle that justice should not only be done but it also should seem to have been done - the duty to act judicially excludes the possibility of arbitrary exercise of the power - If reasons are required to be given for an order the same would be an effective restraint or potent weapon to check the abuse of power - It excludes from consideration extraneous or irrelevant matters – thus, the matter of compensation of ₹ 28,00,000/- is remitted back to CIT(A) to decided afresh order – Decided in favour of revenue.
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