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2015 (9) TMI 1124 - HC - Income TaxReopening of assessment - Held that:- As regards the contention that the reassessment based on audit report without independent application of mind by the Assessing Officer is not sustainable, is concerned, do not find any force in the said contention since the respondent has given cogent reasons in his speaking order, dated 12.1.2015 while rejecting the objections raised by the petitioner, for re-opening of the assessment and therefore, it cannot be stated that the respondent has not applied his mind and solely resorted to based on the audit report. In fact, the audit party is entitled to point out a factual error or omission in the assessment and it is settled law that re-opening of the case on the basis of a factual error pointed out by the audit party is permissible under law. It has been held so in the case of “CIT versus P.V.S.Beedis” reported in (1997 (10) TMI 5 - SUPREME Court ), wherein, the Hon’ble Supreme Court has held as under: “The dispute as to whether reopening is permissible after audit party expresses on opinion on a question of law is now being considered by a larger Bench of the Supreme Court. There can be no dispute that the audit party is entitled to point out a factual error or omission in the assessment. Re-opening of the case on the basis of a factual error pointed out by the audit party is permissible under law. ..” In view of above conclusion that the re-opening of the assessment resorted to by the respondent is valid in law, all the other grounds raised on behalf of the petitioner, such as, unabsorbed depreciation of earlier years and carried forward losses can be set off against income computed under Sections 68, 69 and 69A of the Act, applicability of Section 115BBE and parallel proceedings under Sections 154 and 147 cannot be undertaken simultaneously, etc., in my opinion, are the subject matter of the appeal inasmuch as, as against the impugned proceedings, the petitioner is having an efficacious remedy. W.P. dismissed.
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