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2020 (10) TMI 557 - AT - Income TaxReopening of assessment u/s 147 - audit objection relied upon - reopening of assessment in 2nd round of litigation - Non disposing of the objections - HELD THAT:- Assessment is reopened on the basis of audit objection which is nothing but a borrowed satisfaction of the audit party and not AO’s own satisfaction. In our opinion there is no application of mind by the AO while recording the reasons under section 148(2). Reopening of assessment proceedings is not based upon any new tangible material and there being no application of mind on the part of the AO. No infirmity in the order of Ld. CIT(A) on this issue. Further, we note that assessee has also filed objections to reopening for the first time in the set aside proceedings before the AO vide letter dated 13.10.2015 and AO observed that objections could not be disposed off in the second round of litigation. The said non disposal of objections by way of speaking order rendered the entire assessment proceedings as invalid and void. See HINDUSTAN UNILEVER LIMITED (FORMERLY KNOWN AS HINDUSTAN LEVER LTD) [2018 (1) TMI 1506 - ITAT MUMBAI] and M/S. BAYER MATERIAL SCIENCE PVT LTD.[2016 (3) TMI 179 - BOMBAY HIGH COURT]. Assessment framed without disposing of the objections by way of speaking order is invalid and has to be quashed. In view of the above facts and circumstances and the ratio laid down in the various decisions, we hold that the order of Ld. CIT(A) is correct and pursuant to the ratio laid down by various judicial forums. Accordingly the order of CIT(A) is upheld by dismissing the appeal of the revenue.
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