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2022 (5) TMI 298 - HC - Income TaxRevision u/s 264 - validity of Reopening of assessment u/s 147 - disallowance of interest paid by the Assessee to banks/financial institutions - Petitioner responded to notice reiterating that he had sufficient funds to make such advances and there was no nexus between the borrowed funds and such advances - HELD THAT:- PCIT has failed to deal with one of the principal grounds of challenge to the assessment order viz., that without considering the Petitioner's objection to the reopening of the assessment under Section 147 of the IT Act, the reassessment order could not have been framed and that this was contrary to the dictum of the Supreme Court in GKN Driveshafts (India) Ltd. v. Income Tax Officer [2002 (11) TMI 7 - SUPREME COURT] On a perusal of the impugned order, it reveals that the above objection was in fact not considered by the PCIT. The Court is of the view that the impugned order of the PCIT is unsustainable in law in so far as it is failed to consider the principal objection of the Petitioner to the opening of the assessment. Therefore, the flaw vitiates the order of reassessment equally vitiates the impugned order of the PCIT as well. In this connection, references were being made to the decision of this Court in Viresh Hemani v. Income Tax Officer [2021 (4) TMI 1175 - ORISSA HIGH COURT] and the recent decision M/s. Tuff Tubes (Orissa) Pvt. Ltd. v. The Deputy Commissioner of Income Tax [2022 (2) TMI 1228 - ORISSA HIGH COURT] - Reassessment order set aside - Decided in favour of assessee.
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