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2019 (11) TMI 199 - AT - Income TaxReopening of assessment u/s 147 - Disallowance of prior period expenses - whether re-opening u/s147/148 of the Act in maintainable where tax liability as per book profits computed under s.115JB ? - HELD THAT:- We find that the issue is no longer res integra in view of the judgment rendered by Jurisdictional High Court. The Hon’ble Gujarat High Court in India Gelatine and Chemicals Ltd. [2015 (2) TMI 808 - GUJARAT HIGH COURT] has observed that in the absence of any addition to the tax liability of the assessee computed u/s115JB of the Act (which exceeds the tax liability under normal provisions), the jurisdiction of the AO is ousted even if the proposed disallowance of expenditure by the AO under normal provisions is sustained. We are not in a position to take any indulgence at the plea of the Department for maintainability of re-assessment notice and re-assessment order having regard to legislative fiat by way of Explanation 2 to Section 147 of the Act referred to and relied upon. Needless to say, Article 141 of the Constitution embodies the rule of precedent. All the subordinate courts are bound by judgment of the High Courts. Thus, governed by the decision of the Hon’ble Gujarat High Court as noted above, we find merit in the plea raised by the assessee by way of its additional grounds of appeal. The re-assessment notice is accordingly quashed and re-assessment order is declared null and void. Appeal filed by the assessee allowed.
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