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2022 (8) TMI 1354 - AT - Income TaxRevision u/s 263 - validity of initiation of reassessment proceedings u/s 147 - HELD THAT:- We respectfully noted that the settled position of law on this aspect, as held in the case of Haryana Acrylic Ltd. [2008 (11) TMI 2 - DELHI HIGH COURT] is that the requirement of recording the reasons, communicating the same to the assessee enabling the assessee to file objections and the requirement of passing a speaking order are all designed to ensure that the AO does not reopen the assessment which has been finalized on mere whim or fancy and that he does so only on the basis of lawful reasons and since these steps are also designed to ensure complete transparency and to ensure that the principles of natural justice is followed and, therefore, any deviation from these steps would result in nullifying all the proceedings and reassessment order passed by the AO. We reach to a logical conclusion that the initiation of reassessment proceedings by the AO and reassessment order passed u/s 143(3) r.w. section 147 of the Act dated 28.12.2018 was not valid. Therefore, we are compelled to hold that the initiation of reassessment proceedings in the present case was not valid as the mandatory requirement of section 147 of the Act has not been satisfied. We, therefore, hold that since the reassessment order dated 28.12.2018 was not valid, consequently, the subsequent revisionary order passed by PCIT u/s 263 is also held to be invalid and, thus, the same is quashed. Since, in the earlier part of this order we have quashed the revisionary order of the ld.PCIT u/s 263 of the Act by allowing the legal ground of the assessee, therefore, other grounds of the assessee challenging the revisionary order u/s 263 of the Act have become academic and infructuous. Therefore, the same are not being adjudicated upon. Appeal of assessee allowed.
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