Recorded reasons for reopening must be furnished in time; failure to do so vitiates reassessment and breaches natural justice.

Where an assessee requests the recorded reasons for reopening, the Assessing Officer must furnish them within a reasonable time and before completing reassessment so the assessee can raise objections effectively. Failure to communicate the reasons deprives the assessee of a meaningful opportunity to contest the reopening at the threshold and breaches natural justice. The defect goes to the root of the jurisdiction assumed for reassessment, and the reassessment is vitiated and unsustainable when the reasons are not furnished in time.

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Issues: Whether reassessment proceedings were invalid for non-furnishing of the reasons recorded for reopening after the assessee sought them.

Analysis: The reassessment notice was issued under the reopening provisions, and the assessee repeatedly sought a copy of the recorded reasons during the assessment stage and thereafter. The record did not establish that the reasons were ever furnished within a reasonable time or before completion of assessment. In such circumstances, the assessee was deprived of the opportunity to object to the reopening at the threshold, which offended the requirement that reasons for reopening must be communicated so that objections can be considered by a speaking order. The defect went to the root of the jurisdiction assumed for reassessment and amounted to a breach of natural justice.

Conclusion: The reassessment was held to be invalid and unsustainable, in favour of the assessee.

Ratio Decidendi: Where an assessee seeks the recorded reasons for reopening, the Assessing Officer must furnish them within a reasonable time and before completing the reassessment so that objections may be effectively raised and decided; failure to do so vitiates the reassessment.

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