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2018 (2) TMI 1516 - AT - Income TaxReopening of assessment - Non–issuance of notice under section 143(2) - Held that:- Non–issuance of notice under section 143(2) of the Act by the Assessing Officer invalidates the order passed under section 143(3) r/w 147 of the Act. As far as the submissions of the learned Departmental Representative that assessee should have raised the objection against non–issuance of notice under section 143(2) within a period of one month as per section 124(3) of the Act, we do not find merit in such submissions of the learned Departmental Representative as the said provision basically deals territorial jurisdiction of the Assessing Officer. Non–disposal of objections raised by the assessee before completion of assessment - Held that:- Assessing Officer did not dispose off the objections of the assessee prior to completion of the assessment under section 143(3) r/w section 147 of the Act. On the contrary, while completing the impugned assessment, the Assessing Officer simultaneously disposed off the objection of the assessee. In our view, the non–disposal of assessee’s objections independently before completion of the assessment under section 143(3) r/w section 147 of the Act is against the ratio laid down by the Hon'ble Supreme Court in case of GKN Drive Shaft India Ltd. (2002 (11) TMI 7 - SUPREME Court). - Decided in favour of assessee Disallowance u/s 14A r/w rule 8D - Held that:- We direct the Assessing Officer to exclude from the average value of investment the investments which are not capable of yielding exempt income and the investments which have not yielded any exempt income in the impugned assessment year for computing disallowance under rule 8D(2). Needless to mention, the Assessing Officer must afford reasonable opportunity of being heard to the assessee before deciding the issue. Ground no.1 raised by the assessee is allowed for statistical purposes. Short credit of TDS - Held that:- Having heard the submissions of the parties, we direct the Assessing Officer to verify assessee’s claim with regard to TDS credit and decide the issue after providing due opportunity of being heard to the assessee.
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