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2020 (7) TMI 301 - AT - Income TaxReopening of assessment u/s 147 - validity of the second notice issued by AO under section 148 - HELD THAT:- We note that section 148 of the Act does not authorize the AO to issue fresh notice when proceedings on a previous notice u/s. 148 of the Act are still pending and have not been finally disposed of. Similar view was taken in Commercial Art Press Vs. CIT [1978 (8) TMI 76 - ALLAHABAD HIGH COURT] wherein it was held that when reassessment proceedings commence following the issue of a notice under section 148 and the same are pending, no fresh notice can be issued under the same provision. The Hon’ble Madras High Court while disposing of the order in A.S.S.P. & Co. 1986 (6) TMI 1 - MADRAS HIGH COURT observed that there could also be no dispute that after the reassessment order is made in pursuance of the first notice issued under section 148, if the ITO has any reason to believe that there is any escapement of the income which will be covered under section 147 of the Act, he can issue fresh proceedings with reference to the assessment order already made in pursuance of the notice under section 148 and in that way he can make any number of times revised order but that cannot affect the position that when a return has been made in pursuance of the notice under section 148, till that return is disposed of by any assessment order or reassessment order, no further notice can be issued under section 148 of the Act. We find force in the contention of assessee that the second notice u/s. 148 without disposing of the return filed pursuant to the first reopening notice dated 19.10.2011 is invalid and, therefore, all the consequential action which has culminated in the assessment order dated 29.03.2014 is null in the eyes of law and resultantly void, therefore, is quashed. Since the legal issue has been decided in favour of the assessee.
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