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2016 (5) TMI 423 - HC - Income TaxReopening of assessment - notice under section 148 of the Act on the basis of audit objection - Held that:- On appreciation of evidence on record and relevant case law on the point, it has been categorically recorded by the Tribunal that the audit party had raised an objection that certain expenses which pertained to earlier years had been claimed in the current assessment year. Reliance was placed on the judgment of the Apex Court in CIT vs. P.V.S.Beedies Pvt. Limited, (1997 (10) TMI 5 - SUPREME Court ) holding that reopening on the basis of audit objection could be done if some factual error was pointed out by the audit party which had been overlooked by the Assessing Officer but no reopening on the basis of audit objection could be done if the objection pertained to some interpretation of law. The error pointed out by the audit party in the present case was held to be factual. Detailed reasons had been recorded by the CIT(A) justifying reopening on the basis of the audit objection. While concurring with the findings recorded by the CIT(A), it was concluded by the Tribunal reopening on the basis of audit objection is as per law in the given facts and circumstances of the case and the learned CIT(Appeals) has very aptly analyzed the validity of notice under section 148 of the Act and we do not find any infirmity in the findings recorded by the learned CIT(Appeals). - Decided against assessee
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