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2014 (6) TMI 473 - AT - Income TaxValidity of reassessment u/s 148 of the Act – Notice u/s 143(2) of the Act not served – Held that:- No notice u/s 143(2) was either issued or served on the assessee – Following ALPINE ELECTRONICS ASIA PTE LTD. Versus DIRECTOR GENERAL OF INCOME TAX & OTHERS [2012 (1) TMI 100 - DELHI HIGH COURT] the reassessment is invalid for not serving mandatory notice u/s 143(2) on the assessee – also in PG. FOILS LIMITED Versus INCOME TAX SETTLEMENT COMMISSION AND ANOTHER [2008 (2) TMI 210 - MADRAS HIGH COURT] it has been held that the observation of settlement commission in the case of another person to which assessee was not a party could not form basis of reason to believe for reopening of assessee’s assessment without inviting objections or explanation from assessee and deciding the same on merits uninfluenced by said observation of Settlement Commission - CIT(A)’s direction as far as assessee is concerned has no legal force and cannot be a reason for reopening the assessment - there is no other material available on record with AO to reopen the assessment - the reopening of assessment is bad in law. Change of opinion - Held that:- Following Commissioner of Income Tax, Delhi Versus M/s. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - the AO has exercised opinion – AO made the addition u/s 2(22)(e) - Thus, taking a different view amounts to change of opinion - the reassessment based on change of opinion is bad in law and liable to be set aside – Decided in favour of Assessee.
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