The Court held that the procedure laid down in the GKN Driveshafts (India) Ltd. v. ITO [2002] 259 ITR 19 (SC) is to be strictly followed. Therefore, the reasons has to be furnished within reasonable time and the objections raised, if any, has to be disposed-off by the AO by passing a speaking order. In the present case, the AO didn’t dispose of the objections raised by the assessee. Hence, the order passed u/s 143(3) r.w.s 147 was set aside. Referred Deepak Extrusions (P) Ltd v. Dy. CIT (2017) 80 taxmann.com 77 (Karn)(HC), ACIT v. Mphasis Ltd, WP No. 919 of 2019 (T-IT) dt. 24-1-2023)(Karn)(HC) (AY. 2011-12)
Hewlett Packard Financial Services (India) v. DCIT (2023) 294 taxman 25 (Karn)(HC)
S. 147 : Reassessment-After the expiry of four years-Order passed without disposing off objection raised by passing a speaking order-Assessment order and notice is set aside. [S. 143(3), 148, Art. 226]