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2022 (3) TMI 607 - AT - Income TaxRevision u/s 263 by CIT - Reopening of assessment twice - AO issued notice u/s 148 based on the reason that he received information from Investigation Wing that the assessee has received accommodation entry - Second re-assessment order has been interdicted by the impugned order of the Ld. Pr. CIT u/s. 263 - HELD THAT:- Second reopening was made by the AO based on the same reasons recorded for reopening the assessment of assessee for the first time (i.e. ₹ 50 lacs has escaped assessment); and since the AO in the first round has reopened the assessment of assessee and enquired about escapement of ₹ 50 lacs which was supposed to have escaped assessment and finally has made addition of only ₹ 25 lacs, the necessary corollary is that AO has accepted/satisfied with the balance of ₹ 25 lakhs out of ₹ 50 Lakhs which was supposed to have escaped assessment for which the AO reopened the assessment in the first round. Thereafter when the second AO reopened on the same issue (i.e. again on the issue of escapement of ₹ 50 Lakhs) which was the precise reason for reopening the assessment in the first round, and the AO in the second round rightly have not made any addition because it is trite law that the second AO in the second round cannot sit in review in respect of the action of AO in the first round on the same issue i.e. AO order dated 29.01.2016 passed u/s. 147/143(3) of the Act on the same set of facts - action of the AO dated 22.06.2018 not to make any addition is valid in law and, therefore, the Ld. Pr. CIT by the impugned order could not have held the AO’s order dated 22.06.2018 (second reassessment order) to be erroneous as well as prejudicial to the interest of the revenue because the order of AO (dated 22.06.2018) is in line with well settled principle of law that AO does not enjoy the power of review. Decided in favour of assessee.
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