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2015 (5) TMI 88 - HC - Income TaxReopening of assessment - long term capital gain was to be added to the income of the said assessee firm or not? - reopening of the assessment for AY 2005-06 seems to be on the basis of the directions issued by the learned CIT (Appeals) in the case of one M/s Devrekha Engineers [another assessee] - Held that:- The basis on which the reassessment proceedings were sought to be initiated to reopen the assessment for AY 2005-06 itself has been set aside by the learned Tribunal and further confirmed by this Court. It is true that the assessment proceedings can be reopened even after a period of six years as per section 150 of the Act to give effect to any finding or direction contained in order passed by any authority and in any proceedings under the Income Tax Act by way of appeal, reference or revision in any proceedings under any other law. Therefore, at the time when the reassessment proceedings for AY 2005-06 by impugned notice dated 30.7.2013 was initiated, it can be said that it can be argued that to give effect to direction issued by the learned CIT (Appeals) in the order dated 25.6.2013 in the case of M/s Devrekha Engineers considering section 150 of the Act, assessment/reassessment might be permissible. However, when the direction of which the effect was to be given while initiating assessment/ reassessment proceedings for AY 2005-06 itself has been set aside, there was no question of giving any effect to the said direction which has been set aside by the learned Tribunal. Under the circumstances, on the aforesaid ground alone, the impugned reassessment proceedings/notice under section 148 to reopen the assessment proceedings for AY 2005-06 deserves to be quashed and set aside. - Decided in favour of assessee.
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