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2016 (7) TMI 1592 - ANDHRA PRADESH HIGH COURTValidity of reopening of assessment - assessment was sought to be made after the expiry of four years - search and seizure operation u/s 132, leading to the proceedings being initiated under Section 153A - HELD THAT:- The original assessment was completed under Section 143(1), after the assessee filed a return of income on 29.10.2014. There was a search and seizure operation u/s 132, leading to the proceedings being initiated under Section 153A. Thereafter, the assessment was again completed under Section 143(3). This is not a case of normal assessment, which has gone on in a routine manner, without any suspicion in the eyes of the AO. This is a case where a scrutiny assessment was made, after which, a search and seizure operation was conducted and, thereafter, the assessment was again completed under Section 143(3) r/w Section 153A. In a third round of attack AO claimed that as per the annual report of the Directors for the previous year 2003-2004, an amount was identified to the assets acquired, from out of the total interest paid to another Company. The Directors report forms part and parcel of the records available for scrutiny. The Department could have taken refuge under Explanation-I, if there had been a processing of the return only once. But in this case, there had been a processing of return twice over. On the second occasion, the processing of the return took place, pursuant to a search and seizure operation. Therefore, this is a case where, in our considered opinion, the Tribunal was right in holding that the case would not fall within the purview of the proviso to Section 147 and that even Explanation-I will not go to the rescue of the Revenue. Therefore, we find no justification to entertain the appeal and, hence, it is dismissed.
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