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2019 (10) TMI 708 - AT - Income TaxReassessment proceedings u/s 147 - addition on account of bogus purchases from M/s AVI Exports - HELD THAT:- Hon’ble Gujarat High Court in the case of Manzil Dinesh Kumar Shah [2018 (5) TMI 1176 - GUJARAT HIGH COURT] in which the AO in the reasons recorded that he reopened the assessment because it needs deep verification. The Tribunal had held that notice to be invalid. The Hon’ble High Court confirmed the view of the Tribunal. The findings of the Hon’ble High Court are reproduced above which clearly support the fact that reopening of the assessment in the matter is wholly illegal and invalid. The issue is, therefore, covered by above judgment of Hon’ble High Court. Further, while granting sanction for reopening of the assessment, Ld. Addl. CIT Range-9, Surat has merely mentioned “Yes, satisfied”. In the same form for recording the reasons and approval the AO has wrongly mentioned that assessee has made transaction with M/s Gem Art instead of M/s AVI Exports. Such an approval u/s 148 was not considered favourably by Hon’ble MP High Court in the case of CIT vs. S. Goenka Lime & Chemicals Ltd. [2015 (5) TMI 217 - MADHYA PRADESH HIGH COURT] . I Initiation of reassessment proceedings as well as approval/sanction of Addl. CIT u/s 147/148 of the Act are invalid, illegal and against the provisions of law - Reopening of the assessment is invalid and bad in law and liable to be quashed. - Decided in favour of assessee.
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