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2019 (3) TMI 79 - AT - Income TaxReopening of assessment - Original assessment u/s 143(3)- reopening on basis of objection raised by audit party - Disallowing the proportionate of depreciation expenses on building in respect of let out portion such building on the contention that the building was partly let out and partly used for business - reasons for reopening of assessment was not provided - HELD THAT:- We note that at the appellate stage, CIT(A) did not give detailed finding about validity of reopening of the assessment u/s 147 except to say that the AO had already discussed the issue while passing the order stating therein that there was an excess allowance of business expenditure which resulted in under-assessment of business income and therefore confirmed the order passed by the AO. In order to initiate the reassessment proceedings, the notice under section 148 should be issued to the assessee. It is well settled law that initiation of reassessment proceedings u/s 147 without issuing notice under section 148 of the Act is void ab initio. How the assessee can defend his case if the reasons for reopening of assessment is not provided to him? Apart from this the AO has reopened the assessment completed u/s 143(3) on the basis of objection raised by audit party. AO has not applied his mind independently to arrive at the conclusion as to whether he had reasons to believe that income of the assessee was escaped from tax in the assessment for the relevant year. Therefore the material on record, we are unable to uphold the stand of the AO for reopening the assessment U/s 147/148, therefore, we cancel the reassessment order passed by the assessing officer under section 147 of the Act. - Decided in favour of assessee.
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