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2019 (6) TMI 586 - AT - Income TaxRectification u/s 154 - AO’s action in reopening u/s 153A - on issues settled by IT Settlement Commission order - HELD THAT:- Reopening u/s 153A in case of assessee covered u/s 245-I is not provided in the Act. In these circumstances, we fail to understand as to what it debatable in coming to conclusion that AO’s action in reopening u/s 153A is illegal and not in accordance law. AO initiates a palpable illegal action and if the assessee doesn’t dispute it by way of an appeal the same can by no stretch of imagination be said to be taking the order of AO out of the ambit of a mistake apparent from record being an ex-facie illegal order. Hence, as per the mandate of the Act, once when the issue has been decided by the settlement commission, it is not open to the AO to reopen the assessment and consider the issue again. AO’s action is not even justified by the exception in the non-obstante clause as mentioned in section 153A. Hence, the mistake in the order of the AO is apparent and palpable which leads to a conclusion that the AO’s order is exfacie legal. Hence in our considered opinion, CIT(A) has clearly erred in dismissing the assessee’s appeal by holding that it is upon a debatable issue. Accordingly, since, the AO was not fortified to make an addition, qua section 14A as the matter stood already concluded by IT Settlement Commission order, this assessment order deserved to be cancelled/quashed. Accordingly, we set-aside the order of CIT(A) & decide the issue in favour of the assessee.
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