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2019 (9) TMI 352 - ITAT VISAKHAPATNAMRectification of mistake u/s 254 - non consideration of case law relied upon by the department - Validity of reopening of assessment u/s 147 - whether non communication of reasons for reopening the assessment renders the assessment invalid or not? - HELD THAT:- ITAT after considering the facts of the case and as per the material available on record, given a finding that the AO did not communicate the reasons recorded for reopening the assessment. On finding the fact that the reasons recorded were not communicated, the ITAT decided the appeal on the basis of the arguments advanced by both the Counsels at the time of appeal bearing. We have gone through our record and observed that the department has not argued the case law mentioned in the Miscellaneous Application i.e. S.Narayanappa Vs. CIT [1966 (9) TMI 36 - SUPREME COURT] during the appeal hearing. Therefore, the ITAT has no occasion to consider the decision relied upon by the department. Decision of Hon’ble Supreme Court in S.Narayanappa vs.CIT [1966 (9) TMI 36 - SUPREME COURT] was delivered much earlier than the decision of Hon’ble Supreme Court in GKN Drive Shafts (India) Ltd [2002 (11) TMI 7 - SUPREME COURT] and related to validity issue of notice under section 34(1) of 1922 Act. Subsequently Hon’ble Supreme Court considered the issue in G.K.N.Drive Shafts(India) Ltd vs CIT in [2002 (11) TMI 7 - SUPREME COURT] with particular reference to the provision of section 147 of 1961 Act and held that the AO is bound to communicate the reasons. While deciding the appeals of the Revenue, this Tribunal has relied on the decision of the Apex Court in GKN Drive Shafts and various other decisions of Hon’ble Courts and the decision of this Tribunal and decided the appeals. Therefore, there is no mistake in the order passed by the ITAT, hence, the Miscellaneous Application filed by the revenue are dismissed.
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