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2013 (5) TMI 157 - HC - Income TaxNotice U/s 148 escaped assessment - Assessing Officer was compelled by the audit party to re-open the assessment - Held that:- It is well settled that even if an issue is brought to the notice of the Assessing Officer by the audit party, it would not preclude the Assessing Officer from acting on such communication as long as the final opinion to take appropriate action is that of the Assessing Officer and not that of the audit party. Referring to the decision in case of CIT v. P.V.S Beedies (P.) Ltd (1997 (10) TMI 5 - SUPREME Court). it is equally well settled however that if the Assessing Officer has acted only under compulsion of the audit party and not independently, the action of re-opening would be vitiated. It is well settled that it is only the Assessing Officer whose opinion with respect to the income escaping assessment would be relevant for the purpose of reopening of closed assessment. It is, of course true, as held by the decision of the Apex Court in case of PVS Beedies Private Limited [1997 (10) TMI 5 - SUPREME Court] and Indian & Eastern Newspaper Society [1979 (8) TMI 1 - SUPREME Court ], if the audit party brings certain aspects to the notice of the Assessing Officer and thereupon, the Assessing Officer forms his own belief, it may still be a valid basis for reopening assessment. It writs large on the face of the record that the Assessing Officer was compelled to issue notice for reopening, though he held a bona fide belief that the treatment to the income which he had accorded in the original assessment was as per the correct legal position. - Notice u/s 148 quashed - decided in favor of assessee.
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