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2014 (10) TMI 489 - AT - Income TaxReassessment u/s 147 - Deduction u/s 80IB(10) - Area of the commercial tenements occupied in respect of "Veena Sur" project is 1488 sq.ft. – Held that:- Once an issue is adjudicated and settled by the higher judicial authority, it is not open to the lower income tax authorities to reopen, make assessment or reassessment on the basis of same facts and circumstances and in the absence any incriminating or new material, information or evidence or of a contrary decision of superior judicial authority in order of hierarchy - If the Revenue officials choose to do so, then it is to be treated as not only the misuse but also abuse of their authority and in such an event defenses like protecting the interest of Revenue, keeping the issue alive etc. will not be sufficient to absolve them of the likely penal consequences against them - the AO observed that since the assessment in the case had been annulled on the legality of notice u/s 143(2) of the Act and the case had not been heard on merits at any of the stage including appellate proceedings, there was a reason to believe that the income assessed in this case had escaped and therefore he reopened the assessment u/s 147 of the Act. If an act of making additions u/s 153A on the ground of maintaining consistency in the stand of the Revenue and for keeping the issue alive, is allowed or not condemned, it may lead continuous harassment of assessee and never ending litigation on the same issue, such as, if the said additions are deleted by the higher judicial authorities even up to the level of Apex Court, the AO still would reopen the assessment and make additions on the same issue and on the basis of same facts u/s 147 of the Act - If the appeals also meet the same fate of setting aside of additions, then the Commissioner would step into to make the same additions on the same issue again, by way of invoking the provisions of section 263 of the Act and so on - there will not be any end to litigation on the same issue in the case and also to the harassment, loss and agony of the assessee. In their zeal to protect the interest of the department, the officers should not cross the "Laxman Rekha’ which we here mean the line of limit of their legal jurisdiction; doing so may not only prove to be detrimental to the interest of the Revenue but also to them personally - there is no infirmity in the order of the CIT(A) in deleting the additions made by the AO u/s 153A - the registry is directed to send a copy of the order to the Chairman of the CBDT so that the necessary instructions may be issued to the Income Tax officers/Commissioners in this regard and in future due care be taken, not to disrespect or disobey the orders of the higher judicial authorities and also not to file frivolous appeals – Decided against revenue.
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