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2020 (1) TMI 1302 - ITAT CUTTACKValidity of reopening of assessment u/s 147 - HELD THAT:- As per the reassessment order, it is clear that the assessment u/s.143(3) of the Act was completed on 24.03.2014. The audit report on the basis of which the AO has recorded the reasons for reopening of the completed assessments were available with him. There was no any tangible material came to the knowledge of the AO. The same set of facts were already in the existence at the time of original assessment made by the AO. AO reopened the case that the assessee had closed his business activity and the loss cannot be carried forward on the closed business. No opinion formed in this regard by the AO and he had also accepted the loss claimed by the assessee in the original assessments and the assessee had carried forward the said loss which has been allowed by the AO. It can be said that reopening was based on any change of opinion. We are unable to accept the contention of the ld. DR. Even if there is any mistake committed by the AO while competing the assessment u/s. 143(3) of the Act, the same cannot be allowed to be taken as a basis for reopening of the assessment as it would amount of giving premium to an authority exercising qua judicial function to take the benefits of its own wrong. Reopening in the case in hand is unjustified. Accordingly, we dismiss the impugned order passed by the CIT(A) and quashed the reassessment order passed by the AO in the case in hand. Disallowance of Expenses - Business of the assessee is discontinued long back - HELD THAT:- As both the authorities mentioned in their respective orders that the assessee company engaged in the business of providing Power Distribution Management Service. It appears that the assessee is still carrying on his business as per the memorandum of association. Therefore, the assessee is entitled to debit the expenses in the profit and loss account for the impugned assessment year and he has rightly claimed as per Section 37(1) - Decided in favour of assessee.
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