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2015 (3) TMI 152 - HC - Income TaxReassessment proceedings - ITAT confirmed CIT(A) decision cancelling the reassessment proceedings - Held that:- It is evident that the self same reasons which were the basis for proceedings under Sections 147/148 of the Act, were also the foundation for an admitted rectification which, however, proved to be abortive. Not content with that move, the AO sought to issue reassessment proceedings. The basis for all these, in turn, was an audit report. Now, as to the status of audit reports, the law is clear. In CIT v. Simbhaoli Sugar Mills Limited ( 2011 (3) TMI 701 - DELHI HIGH COURT ) the Court, after applying the ratio in Kelvinator (2010 (1) TMI 11 - SUPREME COURT OF INDIA ) also held that initiation of reassessment proceedings on the basis of audit report objections is impermissible. In this regard, the Court also notices the ruling in Transworld International Inc. v. JCIT (2004 (9) TMI 26 - DELHI High Court) and Indian and Eastern Newspaper Society v. CIT (1979 (8) TMI 1 - SUPREME Court) ITR 996. This was subsequently affirmed in CIT v. Lucas TVS Ltd. (2000 (12) TMI 102 - SUPREME Court). In the circumstances, therefore, we are of the opinion that no question of law arises; the ITAT acted within its rights in applying the ratio of previous binding decisions and affirming the CIT (Appeals)’s order. - Decided against revenue.
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