Reassessment reopening reasons must be furnished to the assessee; non-disclosure renders the reassessment unsustainable.

Reassessment proceedings under section 147 were held invalid because the recorded reasons for reopening were not furnished to the assessee. Non-supply of those reasons deprived the assessee of an effective opportunity to object to the reopening and defend the case, making the defect fatal. The reassessment order was therefore bad in law and could not be sustained.

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Issues: Whether reassessment proceedings initiated under section 147 of the Income-tax Act, 1961 were valid when the reasons recorded for reopening were not furnished to the assessee, and whether the reassessment order could be sustained.

Analysis: The assessee had sought the reasons recorded for reopening, but they were not supplied during the reassessment proceedings. The requirement to communicate the recorded reasons is integral to the assessee's opportunity to object to the reopening and defend the case. Where reasons are not furnished, the assessee is deprived of a fair opportunity and the reassessment cannot be upheld. The omission was treated as a fatal defect, and the reassessment was held bad in law.

Conclusion: The reassessment was invalid for non-furnishing of the reasons recorded for reopening, and the appeal was allowed in favour of the assessee.

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