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2012 (8) TMI 332 - AT - Income TaxValidity of reassessment order passed u/s 147 of the order framed u/s 143(3), when the same was subject matter of rectification u/s 154 - assessment reopened on ground that write off of loan of Rs 1.35 crores is the capital loss and should not have been allowed as bad debts - Held that:- It is found that Notice u/s. 154 was issued to rectify the mistake apparent from record of allowance of the claim of bad debt of Rs. 1.35 crore. Also, reasons given for the reopening of the assessment are on principle identical with the reasons given for the reopening of the assessment which shows that AO himself was not certain as to under which section he should proceed while framing the assessment u/s. 147. Further, no tangible material has been brought on record, the AO has simply disallowed the claim of write off on the facts and circumstances which were available before him while framing the original assessment. This approach clearly show that the AO has merely changed his opinion in relation to the allowability of the said write off. Moreover, it cannot be said that assessment proceedings were completed as the order passed u/s. 154 is also an order which can be subject to appeal and revision and as the proceedings are not been completed on record, it cannot be said that any income has escaped assessment. Hence, assessment order passed u/s. 147 is bad in law and is accordingly cancelled - Decided in favor of assessee.
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