2023 (8) TMI 444

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....ame identical facts. Therefore, with the consent of both the parties, we proceed to hear both the appeals together and to pass a consolidated order for the sake of convenience. 4. The Revenue raised two grounds of appeal concerning the only issue is as to whether the CIT(A) justified in allowing deduction u/s. 54B of the Act in favour of the assessee. 5. At the outset, we note that the AO disallowed an amount of Rs. 24,57,440/- u/s. 54B of the Act, wherein, he denied the deduction to the assessee by holding that the assessee being HUF is not entitled to claim deduction u/s. 54B of the Act vide order dated 26-03-2014. Aggrieved by the same, the assessee preferred an appeal before the CIT(A). The CIT(A) discussed the said issue in detail wi....

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.... discussed the said issue from pages 3 to 9 of the assessment order, wherein, he rejected the objections of the assessee vide speaking order. On perusal of the record vide Form No. 35, we note that the assessee questioned the finding of the order of AO in holding the reassessment proceedings u/s. 147 of the Act is not valid, before the CIT(A). The CIT(A) discussed the same in detail at para 8 of the impugned order. The CIT(A) held the AO rightly formed an opinion that there was no detailed examination of the issue u/s. 54B of the Act in the intimation proceedings. The relevant portion at para 8 is reproduced here-in-below for ready reference : "8. Ground relating to the validity of notice issued u/s. 148 of the Act : The return of income ....

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.... reasons recorded by the AO for issue of notice u/s. 148 for reopening the assessment. The reasons recorded were provided to the assessee vide letter dated 06/05/2013 the assessee filed his objections vide letter dated 06/06/2013 against the notice issued u/s. 148. The ld. AO has disposed off the objections raised by the assessee by passing a speaking order dated 19/09/2013. The assessee had filed a writ petition No. 6373/2013 dated 21/11/2013 before the Hon'ble Bombay High Court Nagpur Bench Nagpur and the Hon'ble High Court vide its interim order dated 10/03/2014 has directed the respondent No.1, the Joint Commissioner of Income-tax, Range-1, Nagpur to complete the assessment meanwhile. The Hon'ble High Court also directed the ass....

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....elief had issued the notice u/s. 148 of the Act, after duly recording the reasons and disposal of objections raised by the appellant against issue of notice u/s. 148, forming the part of the record. On perusal of the reasons recorded by the AO, it is seen that no where the AO has referred that the notice u/s. 148 for reassessment has been issued pursuant to the observations of the Audit partly. Therefore, the ratio of the judicial decisions relied upon by the appellant is not applicable to the facts of the case of the present appellant. Therefore, the notice issued u/s. 148 after forming his own belief based on the material in hand forming part of the records cannot be held to be unjustified. This ground is dismissed accordingly." 10. We n....