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2021 (5) TMI 725 - AT - Income TaxReopening of assessment u/s 147 - Income from other sources or business income - receipt towards land development - receipt in assessee's credit side without carrying out any development works - second round of appeal - HELD THAT:- A perusal of the Tribunal's order in first round remand directions makes us clear that the same have already sealed the ultimate outcome of the instant 'lis'. This is for the reason that learned co-ordinate bench had made it clear inter alia concluded that it could not uphold the treatment of the twin receipt amounts received by the assessee as its taxable income. More particularly in view of the fact that it had not performed any development work at all. Learned co-ordinate bench further observed that neither the said disallowance of the entire expenditure could be agreed with nor these receipts could be subjected to estimation as well. These three key findings make it evident that the department's action seeking to assess the assessee's entire receipts credit or debit side as well as estimation, thereof in case of M/s. "NCCPL" (supra) already stands decided against the Revenue and in favour of the tax payer. We therefore are of the opinion that there is nothing left in the instant second round for to delve deeper on the impugned issue(s). The purpose of reopening mechanism was only to assess the assessee qua these receipts followed by the alleged bogus invoices wherein the learned coordinate bench had made it clear in the former round itself that neither of them could be taken as assessee's income. We thus hold that merely because the Assessing Officer has added these receipts as income from "other" sources or the CIT(A) as business income (supra), does not make any difference at all. This is more particularly for the reason that the assessee had already succeeded qua assessment of the very sum as income in the first round as set aside in Section 254 proceedings. There is hardly any dispute that the Assessing Officer had invoked his section 148/147 jurisdiction for the reason that the survey exercise dt. 20.7.2007 had witnessed the impugned receipt in assessee's credit side without carrying out any development works since involving as bogus invoices only. Learned co-ordinate bench's first round order had admittedly reversed the said twin reasoning that neither of them could be assessed as assessee's income. Faced with this situation, we hold that once the impugned reopening mechanism based on this twin reasoning itself was decided against the department on merits, there is no reason left to support the impugned reopening since its very foundation itself has no legs to stand. The impugned reopening itself is not sustainable in the light of the alleged twin reasons recorded by the Assessing Officer which have been decided in the tribunal first round that the same did not give rise to any taxable income which could be stated to have escaped assessment in assessee's case. It is thus apparent that the impugned additions be it as income from 'other' sources or 'business', both are contrary to the tribunal's remand directions closing all options of assessing the entire credit, debit as well as estimates thereof would not help the Revenue's cause. We thus quash the impugned reopening as well in both these appeals.
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