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2014 (4) TMI 268 - AT - Income TaxCancellation of assessment u/s 147/148 of the Act – Held that:- The loss sought to be reduced by reopening the assessments of both the assesses, was voluntarily reduced by them by filing the rectification application - as per the provisions of Section 155 (8) of the Act, an Income-tax Authority must pass an order on a rectification application within a period of six months from the end of the month in which such application is received by it - In case it is not so done, the amendment sought through the rectification application shall be deemed to have been made. The AO went entirely wrong in observing that the assesses could not have filed the rectification applications before filing the returns of income - the assessees, by filing the rectification applications, themselves voluntarily reduced the loss proposed to be reduced by reopening the assessments and this being the only reason recorded for reopening the completed assessments, after such reduction of loss, there remained nothing to validate the reopening – the applications were filed prior to the issuance of notices u/s 148 of the Act - CIT (A) has duly taken into consideration all the facts and there was no error in his action of holding the reopening in both the cases to be invalid and cancelling the assessments – Decided against Revenue.
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