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2016 (7) TMI 821 - AT - Income TaxValidity of initiation of re-assessment proceedings - rectification of mistake - professional/technical charges - Held that:- Proceedings u/s 154 were initiated by means of notice dated 23.2.2011. The assessee furnished reply to this notice. As against these proceedings u/s 154, taking place in the year 2011, the AO initiated the instant re-assessment proceedings in the year 2013. The ld. DR was required to intimate the status of section 154 proceedings on the earlier date of hearing and the case was accordingly adjourned. Today, the ld. DR submitted in the open court that he enquired from the concerned AO about the status of section 154 proceedings initiated in the year 2011, who, in turn, stated that neither any order has been passed u/s 154 nor such proceedings have been dropped. This shows that the AO initially initiated rectification proceedings in the year 2011 and without completing the same, started re-assessment proceedings in 2013 and, thereafter, completed the assessment by means of order u/s 143(3) read with section 147. This manifests that during the continuation of the proceedings u/s 154, the AO embarked upon the same issue by means of a separate re-assessment proceedings without concluding the earlier proceedings initiated u/s 154. It goes without saying that initiation of two parallel proceedings on a similar subject matter, cannot sustain. If first proceedings have been validly initiated, then such proceedings must come to an end for making a way for the initiation of another proceedings on the same subject matter. Unless the earlier proceedings are buried, either by way of an order on merits or by dropping the same, no fresh subsequent proceedings on the same subject matter can be initiated. Adverting to the facts of the instant case, it is noticed that the rectification proceedings u/s 154 were initiated in the year 2011 and these were still on in the year 2013, when the proceedings u/s 147 were initiated on the same subject matter. This manifests that the proceedings u/s 147 cannot stand during the continuation of proceedings u/s 154. Ex consequenti, the initiation of re-assessment by means of notice u/s 148 and the proceedings flowing therefrom are hereby set aside. The AO is fully empowered to give a logical conclusion to the proceedings u/s 154 as per law.
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