Reassessment invalid for lack of independent enquiry and failure to decide assessee objections before reopening assessment.

Reassessment under Section 147 of the Income-tax Act was held invalid where the Assessing Officer relied only on the investigation wing report, made no independent enquiry before recording satisfaction, and failed to dispose of the assessee's objections. The requirement to consider and decide objections was treated as mandatory, and non-compliance undermined the reopening. The court therefore found no legal infirmity in invalidating the reassessment and held that no substantial question of law arose.

---

---

Issues: Whether the reopening of assessment under Section 147 of the Income-tax Act, 1961 was invalid for want of independent enquiry and for failure to consider the assessee's objections.

Analysis: The reassessment was invalidated on the footing that the Assessing Officer acted only on the investigation wing report, made no independent enquiry before forming satisfaction, and did not dispose of the objections filed by the assessee. Consideration of objections was mandatory, and non-compliance with that requirement could have affected the decision to proceed with reassessment.

Conclusion: The finding that the reopening was invalid suffered from no legal infirmity, and no substantial question of law arose.

---