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2014 (4) TMI 624 - AT - Income TaxValidity of passing of effect order – Petition pending u/s 154 of the Act not decided – Held that:- The proceedings under section 154 of the Act have nothing to do with the action of the AO in giving effect to the order of the Tribunal - the appeal of the assessee was decided on merits by the Tribunal vide order dated 10.03.06 - The AO was duty bound to give effect to the order of the Tribunal - Even though an application under section 154 moved by the assessee was pending before the AO, still it cannot be said that the AO was not justified in giving effect to the order of the Tribunal - The assessee has got a separate remedy against the decision or non-decision on its application moved u/s 154 of the Act - There is nothing provided in the section 154 of the Act that pending such application moved under this section, the AO is prevented from giving effect to the order of the appellate authority. Bar of limitation – Held that:- The application moved or pending before the AO on the similar grounds which have already been adjudicated by the Tribunal, becomes infructuous and nullity and the AO becomes functus- officio to decide the said application on merits - the AO cannot sit in appeal relating to the matter which has already been adjudicated by the Tribunal - Once the assessee moved the application u/s 254 of the Act before the Tribunal and the same has been considered and decided by the Tribunal, the order of the Tribunal would be binding upon the AO and the AO has no jurisdiction to decide the application moved u/s 154 on the matter which has already been decided by the Tribunal - the assessee has independent remedy to move to the higher authorities raising the issue relating to adjudication or non-adjudication of its application, but on that ground it cannot be said that the order giving effect to the order of the Tribunal was bad in law – Decided against Assessee. Validity of reopening of case – Held that:- The AO while giving effect to the order of the Tribunal was not supposed to give any finding on the merits of the case but only course before him was to give effect to the order of the Tribunal as such – Decided against Assessee. Validity of reopening of assessment – Held that:- The issue has already been raised by the assessee in his rectification applications as observed above before the Tribunal and the rectification applications have already been dismissed by the Tribunal - the matter has already been adjudicated by the Tribunal and the assessee has not filed any appeal before the Hon'ble High Court, the findings of the Tribunal have become final and there was no jurisdiction either to the AO or to the CIT(A) to re-adjudicate these issues on merits either on any application moved under section 154 or otherwise – Decided against Assessee.
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