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2017 (9) TMI 1988 - AT - Income TaxReopening of assessment u/s 147 - Period of limitation - Applicability of provisions of section 150(1) - HELD THAT:- As in the order passed by the ITAT for the AYs 2001-02 to 2004-05 [2017 (2) TMI 854 - ITAT HYDERABAD] the Tribunal decided the matter by holding that section 150(1) of the Act can be invoked only when there is a direction to bring the balance of interest to tax in the earlier assessment years whereas there is no such direction in the order passed by the ITAT for the A.Y. 2006-07. It deserves to be noticed that section 150(1) refers to “finding or direction”. The Division Bench of the ITAT, while disposing of the appeal for the AYs 2001-02 to 2004-05, appears to have been of the view that in the absence of any specific direction section 150(1) cannot be invoked, probably by assuming that there is no difference between the expression “finding and direction”. Since this is an order passed by the Division Bench and that too in the assessee’s own case in the earlier years, respectfully follow the same to hold that the provisions of section 150(1) were wrongly invoked by the Assessing Officer. Under these circumstances, the reopening of the assessment is treated as bad in law and the assessment is hereby set aside. Appeal filed by the assessee is allowed.
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