TMI Blog2014 (4) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not have filed the rectification applications before filing the returns of income - the assessees, by filing the rectification applications, themselves voluntarily reduced the loss proposed to be reduced by reopening the assessments and this being the only reason recorded for reopening the completed assessments, after such reduction of loss, there remained nothing to validate the reopening – the applications were filed prior to the issuance of notices u/s 148 of the Act - CIT (A) has duly taken into consideration all the facts and there was no error in his action of holding the reopening in both the cases to be invalid and cancelling the assessments – Decided against Revenue. - ITA No.5362/Del/2013, ITA No.5363/Del/2013 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the mistake does not come in the ambit of section 154 of the I.T.Act,1961? iv) Whether under the facts and circumstances of the case and in law, the CIT(A) was correct in equating the facts, of the present case where the assessee had only filed application u/ s 154 of the Act with the facts of Digital Radio(Mumbai), Broadcasting Ltd, whether order u/ s 143(3) was passed, while deciding the validity of proceedings u/ s 147 of the Act initiated in this case? 3. The return of the assessee for the year under consideration was processed u/s 143 (1) of the Act. Subsequently, it was noticed that the assessee had claimed deduction as revenue expenditure by making a debit entry in the Profit Loss Account under the head Licence fee . T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. By virtue of the impugned orders, the Ld. CIT (A) cancelled the assessment orders made in consequence of the reopening notices, holding such reopening to be invalid in both the cases. 6. The Ld. DR has contended that the Ld. CIT (A) has erred in cancelling the assessment correctly framed u/s 147/148 of the Act; that the Ld. CIT (A) has erred in holding that the very basis of issuance of notice u/s 148 was absent and there was no escapement of income and that so, the provisions of Section 147 of the Act were not applicable, that while doing so, the Ld. CIT (A) has failed to consider the patent fact that the assesse had itself admitted that the wrong claims having been made in the return on account of licence fee and that application u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced by reopening the assessments of both the assesses, was voluntarily reduced by them by filing the rectification application. Now, as per the provisions of Section 155 (8) of the Act, an Income-tax Authority must pass an order on a rectification application within a period of six months from the end of the month in which such application is received by it. In case it is not so done, the amendment sought through the rectification application shall be deemed to have been made. 9. Then, the Assessing Officer went entirely wrong in observing in the assessment orders that the assesses could not have filed the rectification applications before filing the returns of income. GKN Drive Shafts (supra), which the Assessing Officer sought to r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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