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2019 (6) TMI 999 - HC - Income TaxReopening of assessment u/s 147 - there is an order of the Settlement Commission u/s 245D(4) in relation to the assessment year in respect of which the assessment is sought to be reopened - HELD THAT:- A perusal of the appraisal report, on which reliance has been placed by the AO, reveals that there was sufficient material for the AO to form the belief that income chargeable to tax has escaped assessment. The material also refers to the petitioner so as to establish a link between the relied upon materials and the petitioner. Considering the nature of material available with the Revenue, it is not possible to state that on the reasons recorded, the AO could not have formed the belief that income chargeable to tax has escaped assessment. In the facts of the present case, since the Settlement Commission has passed an order u/s 245D(4) in respect of the assessment year in relation to which the assessment is sought to be reopened, the AO has no jurisdiction to invoke the provisions of section 147 of the Act and reopen an assessment, which has become conclusive. Such concluded assessment can only be reopened in case of fraud or misrepresentation of facts, as contemplated under subsection (6) of section 245D. The assumption of jurisdiction on the part of the Assessing Officer u/s 147 of the Act by issuing the impugned notice u/s 148 of the Act is, therefore, invalid and without authority of law. Thus, though on the reasons recorded for reopening the assessment, the AO could have formed the belief that income chargeable to tax has escaped assessment, in this case, as discussed earlier, since there is an order of the Settlement Commission u/s 245D(4) in relation to the assessment year in respect of which the assessment is sought to be reopened, the AO has no jurisdiction to reopen the assessment. The impugned notice u/s 148 , therefore, cannot be sustained. For the foregoing reasons, the petition succeeds and is, accordingly, allowed. The impugned notice dated 31.03.2018 issued by the respondent u/s 148 is hereby quashed and set aside. It is, however, open for the respondent/Revenue to move the Settlement Commission for appropriate relief of declaration that the previous order u/s 245D(4) is void, setting out the relevant facts and circumstances. - Decided in favour of assessee.
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