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2017 (8) TMI 1604 - AT - Income TaxReopening of assessment u/s 147 - validity of reason to believe - audit wing of the Department brought to the notice of the AO that an amount of expenditure actually incurred for services rendered by the assessee-company has escaped assessment - HELD THAT:- AO came to a conclusion after considering the audit objection, that there was no escapement of income. Therefore, it cannot be said that the audit wing of the Department has merely brought to the notice of the Assessing Officer the fact of escapement of income. Once, the Assessing Officer is not satisfied about escapement of income and requested the audit wing to drop the proceeding, he cannot change his mind subsequently and issue notice under Section 148 for reopening assessment. No material is available on record to suggest that the Assessing Officer reopened the assessment due to change of circumstances after the reply dated 04.03.2014 requesting the audit wing of the Department to drop the audit objection. In the absence of any material, this Tribunal is of the considered opinion that the reopening of assessment is not justified. Therefore, the consequential assessment order passed by the Assessing Officer cannot stand in the eye of law. .Accordingly, the order of the Assessing Officer is quashed - Decided in favour of assessee.
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