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TMI Blog2014 (4) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... cility, are being taken from ITA No.5362/Del/2013. 2. The assessee has taken the following grounds:- "i) Whether the CIT(A) under the facts and circumstances of the case and in law was justified in cancelling the assessment framed u/ s 147/148 of the Income Tax Act,1961? ii) Whether under the facts and circumstances of the case, the CIT(A) was correct in law in holding that very basis of issuance of notice u/ s 148 was absent and there was no escapement of income, provision of Section 147 was not applicable, without considering that the assessee had itself admitted wrong claim in the return on account of license fee and had filed application u/ s 154 of the Act to withdraw the claim? iii) Whether under the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification application u/s 154, whereby, the licence fee as originally claimed as deduction, was offered to be reduced , resulting in reduction of losses as assessed; that the application had not been rejected; and that the assessee had, thus, voluntarily got reduced the loss proposed to be reduced vide the said rectification application. 4. The Assessing Officer, however, did not find the reply of the assessee to be acceptable. It was held that as per 'GKN Drive Shafts India vs. ITO', 259 ITR 19 (SC), the assessee can only file objection after filing the return and after obtaining the reasons recorded, whereas in the present case, the assessee had filed the objections without filing the return, rendering the objection raised by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the cases be set aside/quashed by allowing the appeals filed by the department. 7. The ld. Counsel for the assessee, on the other hand, has placed strong reliance on the impugned orders, contending that the very fact that the assesses had filed the rectification applications before the filing of the returns of income showed the bona fides of the assessees; that by virtue of these applications, the assessee had themselves voluntarily reduced the loss sought to be reduced by reopening the assessments; that the rectification applications have not hitherto been rejected till date; that the Ld. CIT (A) has duly taken into consideration all these facts while rightly deciding this matter in favour of the assessee, holding the reopening in bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is pertinent were filed prior to the issuance of notices u/s 148 of the Act. In the assessment orders the Assessing Officer himself acknowledged the factum of such applications having been filed. 10. The Ld. CIT (A) has duly taken into consideration all the above facts and we do not find any error in his action of holding the reopening in both the cases to be invalid and cancelling the assessments made in consequence thereof. While doing so, the Ld. CIT (A) has correctly appreciated that in the case of 'Digital Radio (Mumbai) Broadcasting Ltd.', the above position had been taken into consideration by the Assessing Officer. 11. In view of the above, the grievance sought to be raised by the department in both these cases is rejected being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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