Appeals Tribunal remands case for reassessment, emphasizes need to address objections before proceeding.

The Tribunal allowed the Revenue's appeal, setting aside the Commissioner of Income Tax (Appeals) order and remitting the matter back to the Assessing Officer to consider the objections raised by the assessee for reopening the assessment and pass a speaking order. The Tribunal emphasized the necessity for the Assessing Officer to address the objections raised by the assessee before proceeding with reassessment, following the Supreme Court's directive in GKN Driveshafts case.

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Issues:
1. Validity of reopening of assessment under section 148 of the Income Tax Act, 1961.
2. Failure of Assessing Officer to pass a speaking order on objections raised by the assessee for reopening of assessment.

Detailed Analysis:
1. The appeal before the Appellate Tribunal ITAT Chennai was against the order of the ld. Commissioner of Income Tax (Appeals) regarding the assessment year 2009-10. The assessee had initially declared total income, which was later reassessed under section 143(3) of the Income Tax Act, 1961. Subsequently, the Assessing Officer issued a notice under section 148 for reopening the assessment, which the assessee challenged on the grounds that the notice was issued beyond the prescribed time limit of 4 years and that there was no failure on their part to disclose all material facts. The ld. CIT(A) held that the reassessment was invalid as it was a change of opinion, and the additions made during reassessment were not justified.

2. The Revenue appealed to the Tribunal, arguing that as per the decision of the Supreme Court in GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19, the objections raised by the assessee for reopening the assessment should have been considered by the Assessing Officer before proceeding with the reassessment. The Tribunal noted that the Assessing Officer had not passed a speaking order on the objections raised by the assessee, which was contrary to the Supreme Court's directive in the GKN Driveshafts case. Therefore, the Tribunal set aside the order of the ld. CIT(A) and remitted the matter back to the Assessing Officer to consider the objections raised by the assessee and pass a speaking order on the same. The appeal filed by the Revenue was allowed for statistical purposes.

In conclusion, the Tribunal's decision emphasized the importance of the Assessing Officer addressing the objections raised by the assessee before proceeding with the reassessment, in line with the principles laid down by the Supreme Court in the GKN Driveshafts case.

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