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2007 (4) TMI 287 - AT - Income TaxValidity Of initiation of reassessment proceedings during the pendency of rectification proceedings - notice issued u/s 148 for the same reasons as for which the notice u/s 154 was issued - HELD THAT:- The fact that the intimation so issued by the AO is subjected to the rectification proceedings initiated by the AO himself only indicates that the assessment proceedings are not yet completed. The order passed by the AO u/s 154 is also an order which can be subject to appeal and revision. There is no evidence in the present case that the proceedings are concluded, and, in any event, communication to that effect was not sent to the assessee. Under these circumstances, it cannot indeed be said that the assessment proceedings were completed on the facts of the present case. Since the assessment proceeding, despite its limited effect as indeed was the case before the Hon'ble Supreme Court in the case of Trustees of H.E.H. Nizam Trust [2000 (2) TMI 4 - SUPREME COURT], were not concluded, it could not indeed be said that any income had escaped the assessment. The AO was thus indeed erroneous in holding the view that income has escaped assessment. The reassessment proceedings were thus vitiated in law and the very issuance of notice u/s 147 is thus liable to be set aside. The legal plea is well taken by the assessee and we approve the same. Thus, we quash the reassessment proceedings. The orders passed as a result of these reassessment proceedings are, therefore, set aside. The appeal is allowed.
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