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2016 (6) TMI 478 - AT - Income TaxReopening of assessment - Adoption of the income at the returned figure as against the income returned on the basis of the assessment completed u/s. 143 - Held that:- The action of the AO in treating the lease transactions and re-working the lease/ finance incomes has become final. Consequently, effect in the later year of 2006-07 was also upheld. Assessee in this year has not challenged the AO’s order u/s. 143 as it is in tune with the stand taken by AO in AY. 2005-06 and no prejudice was caused to assessee. Even otherwise, AO is not entitled to review his own order to come to a different conclusion on the same set of facts. In view of this, the proceedings initiated u/s. 147 are bad in law. Moreover, as rightly pointed out by the ITAT in earlier year, those issues were also confirmed by CIT(A) and ITAT in earlier years. Therefore, AO cannot differ from those findings. In view of this, to the extent of reopening of the assessment, we are agreeing with the Ld. CIT(A) and hold that the reopening of assessment is bad in law. Consequently, the order u/s. 143(3) gets restored. AO is directed to examine the order u/s. 143(3), whether the same is in tune with the directions/findings given in AY. 2005-06 and AY. 2006-07. With reference to quantification of financial leases after adjusting the so called claim of depreciation, in case the order u/s. 143(3) is on similar lines, no action is required. Otherwise, AO is directed to pass necessary modification orders u/s. 154/155 in this year also so that there is no double taxation or double allowance of claims/amounts involved. With these observations, Revenue’s appeal is considered partly allowed.
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