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2021 (8) TMI 802 - AT - Income TaxValidity of the reopening of proceedings under section 147 - non adherence to the principles of natural justice - Assessee contended that, assessment was framed on the basis of mere internal office note, without recording reasons as envisaged u/s 148 of the Act and according to the assessee there is no nexus between the alleged reasons and the assessment framed - HELD THAT:- As held in the case of Haryana Acrylic Manufacturing Co. v. Commissioner of Income Tax [2008 (11) TMI 2 - DELHI HIGH COURT] is that the requirement of recording the reasons, communicating the same to the assessee, enabling the assessee to file objections and the requirement of passing a speaking order are all designed to ensure that the AO does not reopen assessments which have been finalized on his mere whim or fancy and that he does so only on the basis of lawful reasons, and since these steps are also designed to ensure complete transparency and adherence to the principles of natural justice, any deviation from these directions would entail the nullifying of the proceedings. Admittedly in the case on hand, the reasons supplied to the assessee are not the same and verbatim. In view of this settled position of law and respectfully following the line of decision in Haryana Acrylic Manufacturing Co. v. Commissioner of Income tax [2008 (11) TMI 2 - DELHI HIGH COURT] by the higher forum referred to in the decision of the coordinate Bench of this Tribunal in the case of Wimco Seedlings [2020 (6) TMI 586 - ITAT DELHI] we find it difficult to sustain the validity of the reopening of proceedings under section 147 of the Act and consequently quash the same. - Decided in favour of assessee.
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