Allowing the petition the Court held that appeals were pending from the assessment orders for the assessment years 2005-06, 2006-07 and 2007-08. Hence under the third proviso to section 147 the reassessment proceedings were not valid. Court also held that the reasons for reopening rested on the satisfaction of the Assessing Officer who had passed an assessment order for the assessment year 2008-09 which would amount to substitution of the assessment orders by borrowed satisfaction of the Assessing Officer who had passed an order for the year 2008-09 which was impermissible in law. Reassessment notice and order disposing the objection is quashed.(AY. 2005-06 to 2007-08)
Eit Services India Pvt. Ltd. v. Dy. CIT (2024)463 ITR 774 /337 CTR 3 (Karn)(HC)
S. 147 : Reassessment-After the expiry of four years-No evidence of failure to disclose material facts-Notice to withdraw or reduce deduction is held to be not valid-Borrowed satisfaction-Pendency of appeal-Notice for reassessment is not valid [S.10A, 80HHE, 148, 250, Art. 226]