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2021 (8) TMI 215 - AT - Income TaxReopening of assessment u/s 147 - time to initiate Revision u/s 263 was not left - proposal based on audit objection to invoke provision of section 263 - as no time left for invoking the provision of section 263 of the Act and therefore, the ld. CIT directed the ld. AO to take action u/s. 147 - HELD THAT:- CIT as well as the ld. AO both were proceedings to proceed against the Assessee by invoking the provision of section 263 of the Act on the basis of audit objections. They also got certain enquiries conducted but when the enquiry is concluded, no time was left with them for carrying out proceedings u/s. 263 of the Act. It required issuance of show cause notice, opportunity of hearing to the assessee and then passing of the orders. Time for passing order u/s. 263 of the Act i.e. 31.03.1999 was not available. This fact is also mentioned in one of the correspondence of CIT with ld. AO when he requested ld. AO to expedite the inquiries. Therefore, the ld. CIT directed the ld. AO to initiate action u/s. 147 AO recorded the reasons on 30.03.1999 stating that specifically that the ld. CIT has directed him to invoke provisions of section 147 of the Act and therefore, the reopening was made - it is not the 'reason to believe' of the AO about escapement of income which is basic mandatory requirement of law for reopening u/s. 147 - Opinion of ld. AO is clearly manifest that he thought it is case of erroneous order, which is prejudicial to interest of revenue. Reopening is made at the direction of the ld. CIT. The ld. CIT when he did not find time to invoke provision of section 263 of the act, he directed ld. AO to initiate action u/s. 147 of the Act. Therefore, we do not find any reason to uphold the reopening of the assessment. - Decided in favour of assessee.
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