COURT: | ITAT Mumbai |
CORAM: | Ashwani Taneja (AM), Saktijit Dey (JM) |
SECTION(S): | 147, 148 |
GENRE: | Domestic Tax |
CATCH WORDS: | reasons, Reopening |
COUNSEL: | Dr. K. Shivram |
DATE: | October 28, 2015 (Date of pronouncement) |
DATE: | November 20, 2015 (Date of publication) |
AY: | 2001-02 |
FILE: | Click here to view full post with file download link |
CITATION: | |
S. 147/ 148: Issue of furnishing the ‘Reasons’ for reopening the assessment goes to the root of the matter. In the event of failure of the AO to furnish the reasons, the reopening is bad in law |
The undisputed facts are that, one – no ‘Reasons’ are available in the assessment record, and two there is nothing on record to show that certified copy of verbatim ‘Reasons’ was ever provided to the assessee, despite the request made by the assessee before AO, more than once. It clearly indicates that no ‘Reasons’ were recorded infact and therefore, these could not have been provided to the assessee. Had the ‘Reasons’ been recorded by AO, these would have definitely been provided to the assessee. The position of law is clear. It has been held by Hon’ble Supreme Court in the case of GKN Driveshaft 259 ITR 19, that it is mandatory on the part of the AO to provide the copy of the reasons to the assessee and to meet the objections filed by the assessee thereto, if any, before the AO can frame the reassessment order. It is further noted that Hon’ble Bombay High Court in the case of CIT v. Videsh Sanchar Nigam Ltd. (2012) 340 ITR 66 (Bom.), has held that in case reasons are not furnished by the AO to the assessee, before completion of reassessment proceedings, reassessment order cannot be upheld
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