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2015 (11) TMI 531 - ITAT CHENNAIReopening of assessment - non deducted TDS on discount payments u/s 194H - Held that:- The formation of the belief is within the realm of the subjective satisfaction of the Assessing Officer. Further, the intimation sent by the Department u/s.143(1) of the Act, cannot be treated to be an assessment order and he is within power conferred u/s.147 to issue notice u/s.148 of the Act. Further, failure to take steps u/s.143(3) will not render the AO powerless to initiate reassessment proceedings u/s.147 r.w.sec.148 of the Act, though the intimation was sent u/s.143(1) of the Act. In our opinion, the AO is justified in reopening the assessment in this case. For the discount offered to the parties liable to be deducted TDS u/s.194H of the Act as held by the Tribunal in the case of M/s. Vodafone Essar Cellular Ltd. (2011 (4) TMI 882 - ITAT, Chennai ). However, in view of the order of the Special Bench of the Tribunal in the case of Merylin Shipping & Transport vs. Addl. CIT (2012 (4) TMI 290 - ITAT VISAKHAPATNAM), if the discount is already offered to the parties and it is not an outstanding entry in the books of account of the assessee, then the claim of the assessee cannot be disallowed on account of non-deduction of TDS. Accordingly, on merit, we remit this issue to the file of the AO for fresh consideration in the light of the above order of the Special Bench.
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