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2017 (7) TMI 215 - HC - Income TaxReopening of assessment - whether ITAT was justified in holding that AO had the jurisdiction to reassess issues other than issues in respect of which proceedings are initiated, but he was not justified when the reasons for the initiation of those proceedings ceased to survive? - Held that:- Identical issue came up for consideration before this Court in case of Commissioner of Incometax v. Mohmed Juned Dadani [2013 (2) TMI 292 - GUJARAT HIGH COURT] held that Explanation (3), Section 147 of the Act, however, by no stretch of imagination, can be construed as to provide that if the reason on which the assessment is reopened fails, the AO still can proceed to assess some other income which according to him had escaped assessment and which came to his light during the course of the assessment. For assuming jurisdiction to frame an assessment under Section 147 what is essential is a valid reopening of a previously closed assessment. If the very foundation of the reopening is knocked out, any further proceeding in respect to such assessment naturally would not survive.
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