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2010 (1) TMI 828 - AT - Income TaxReopening of assessment under s. 147 - Held that:-withdrawal of investment allowance the assessee was suffered only on 30th Sept., 1981 and not in the previous year relevant to the asst. yr. 1978-79, even if the provisions of s. 154 or 155 are interchangeable with the provisions of s. 147 in certain areas, it cannot be held that there was any escapement of income by the grant of investment allowance, provisions of s. 147 cannot be invoked to withdraw the investment allowance originally granted in the asst. yr. 1978-79 as the time-limit for such withdrawal having expired in terms of the provisions of s. 155 r/w s. 154, provisions of s. 147 cannot be invoked when the specific remedy is available under s. 155(7B) r/w s. 154 of the IT Act. Accordingly, in our opinion, the reopening as well as reassessment is not valid and void ab initio. Withdrawal of exemption from capital gains by invoking the provisions of s. 47A of the IT Act and bringing to tax the capital gain - properties were never treated as stock-in-trade in the course of business by the subsidiary company, actual treatment of the property being stock-in-trade, initiation of proceedings by the AO on the basis of book entries should have been dropped when financial statements were properly rectified as per the provisions of the Companies Act, withdrawal of exemption claimed under s. 47(iv) by invoking the provisions of s. 47A is not justified and valid, order of the lower authorities set aside and decide this issue in favour of the assessee.
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