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2021 (2) TMI 317 - AT - Income TaxValidity of reopening of assessment - re-opening beyond 4 years - Merger of the Order - applicability of the third proviso to section 147 - deduction u/s 36(1)(viia) on provision for bad and doubtful debts in respect of rural advances - assessment was re-opened on the allegation that the Assessee did not give details of rural branches and it had included various branches which are not rural as per the provisions of section 36(1)(viia) - HELD THAT:- We find that the reassessment proceedings were initiated by the AO by issue of notice dated 21.03.2013. The proceedings with reference to the original order of assessment passed under section 143(3) of the Act dated 19.11.2010 is pending before the Hon'ble ITAT and in those proceedings, the very same issue of quantum of deduction under section 37(1)(via) of the Act was pending for consideration before Hon'ble ITAT. Therefore, clearly the third proviso to section 147 of the Act was attracted. In this regard, we find that since the issue of deduction under section 36(1)(viia) of the Act was a subject matter of appeal before the CIT(A) and ITAT, it was no longer amenable to reassessment proceedings under section 147 of the Act. In the case of ACIT vs BSES Ltd. [2011 (9) TMI 135 - ITAT, MUMBAI] the Tribunal analysed the issue of merger and the applicability of the 3rd proviso to Sec. 147 of the Act and held additions made by the learned Assessing Officer all pertain to the matters which got merged with the order of CIT(A). Therefore, the same could not have been considered in the re-opened assessment as per the Third Proviso to section 147. Also see M/S. RELIANCE ENERGY LTD. [2013 (6) TMI 844 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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