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2017 (1) TMI 727 - HC - Income TaxValidity of reopening of assessment - passing a composite order - Held that:- As far as the department is concerned, when they have given the reason to believe, for which an objection is filed, and they confirm that there is valid reason to believe, definitely they can proceed with the assessment order. As far as the assessee is concerned, the right to challenge the reason to believe is not lost merely for the reason that a composite order had been passed. Therefore, the assessee's right to appeal against the reopening of the assessment as well as the assessment proceedings can as well be taken up in a regular appeal. In other words, no prejudice will be caused to the assessee on account of a composite order being passed and therefore, do not think such a ground can be sustained. The revenue had proceeded on the basis that there is non disclosure by which the petitioner have derived a benefit which they were not entitled to. They claimed deduction which they were not entitled which fact came to the notice of the department only in 2010-11 when it was verified whether the petitioner had rural branches. This, according to us is a valid reason for reopening the assessment. Whether the assessment proceedings are valid and justifiable? - Held that:- This question, do not think this Court should be keen to answer especially when the petitioner has an appellate remedy available under the statute. In the said circumstances, this writ petition is dismissed with liberty to the petitioner to file appeal before the competent appellate authority. However, it is made clear that the period during which this writ petition was pending shall be excluded from the period of limitation prescribed for filing an appeal as per the statutory provision.
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