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2015 (10) TMI 236 - AT - Income TaxReopening of assessment - addition on account of foreign travelling expenses of the directors - CIT(A) held that the provisions of section 150 are not applicable in this case and the reassessment is barred by limitation as held BY ITAT in assessee's own case - Held that:- We find that a perusal of the order of the Tribunal reveals that the observations made by the Tribunal cannot be treated as direction under section 150(1) of the Act. The Tribunal simply deleted the additions made by the AO in the block assessment holding that such additions cannot be made in the block assessment as there was no incriminating material found during the search action. The mere observation that the decision given by the Tribunal should not be construed as an authority for the proposition that the disallowance of foreign travelling expenses cannot be made at all in regular assessment of income or on the basis of statement recorded by the directors, was a general observation to the effect that the decision given by the Tribunal in respect of block assessment years should not be taken as a precedent in regular assessment proceedings. Neither any direction was given by the Tribunal for assessing the foreign travelling expenses afresh, nor for reopening of any assessment. A perusal of the said explanation 2 to section 153 of the Act reveals that the said explanation is also not applicable to the facts of the present case. The said explanation provides that if any income is excluded from the total income of the assessee for an assessment year by an order, then such income is to be assessed in the relevant assessment year for which it was held to be relatable. This proposition is not applicable to the facts of the present case at all. It is nowhere held by the Tribunal that the income of the assessee is relatable to any other assessment year. Hence, we do not find any infirmity in the order of the ld. CIT(A) holding that the reopening was barred by limitation. Hence the consequential reopened assessments are not sustainable in law. - Decided against Revenue.
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