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2010 (2) TMI 884 - AT - Income TaxIncome of a foreign principal - validity of reassessment proceedings - reassessment is challenged on the ground that no reasons are recorded in the case of the foreign principal, and once successful in that, reassessment in the hands of the representative assessee is challenged on the ground that the income in question was also being taxed in the hands of the foreign principal as well - Held that:- When an AO is required to satisfy himself that income has escaped assessment, is the point of time when the reasons for reopening the assessment are recorded. It is only when the AO decides to reopen the assessment proceedings that he has to satisfy himself that the income has escaped assessment. When it was pointed out to the learned counsel that all the decisions cited by him relate to the situation as on at the point of recording the reasons of reopening and not at there is no support for the proposition that such a situation must also prevail at the point of time of service of notice, learned counsel merely submitted that the impliedly reference in some judicial precedents is to the service of notice. We do not share learned counsel's perception. A decision is an authority for what it actually decides, and not even for what may logically follow from the same. Learned counsel has, rather half-heatedly, pointed out that there is no date on the reasons of reopening, but then these reasons are forwarded by the AO on 6th Jan., 2004, which is also the date of approval by his Addl. Director of IT, and it is therefore futile to even suggest that the date of the reasons of reopening can be a date later than 6th Jan., 2004. It is thus clear that as on the time of recording of reasons, the reassessment proceedings in the case of the foreign principal were not in progress and, even by the logic advanced before us, the income had escaped assessment. No fault can thus be found in the reasons recorded by the AO. One plea against the reopening of assessment in the hands of the representative assessee is taken which travels upto the Special Bench and, once the Special Bench has given its verdict on the said plea, then another plea on the same issue is taken up, that too without even taking up a specific ground of appeal and without there being any evidence, save and except for, what learned counsel terms as 'statement at Bar', that this aspect of the grievance was argued before the original Division Bench - Reopening proceeding held as valid - Decided in favor of revenue.
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