Failure to furnish recorded reasons for reopening bars fair opportunity to object, nullifying the reassessment and order.

Failure to furnish the recorded reasons for issuance of a notice to reopen an assessment defeats the assessee's ability to object and vitiates reassessment; because reopening is an exceptional power, the recorded reasons forming the basis for reopening must be supplied when requested, and non supply prior to completion of reassessment renders the reassessment proceedings and consequential order invalid and liable to be quashed in favour of the assessee.

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Issues: Whether reassessment proceedings and the consequential reassessment order are invalid where the assessing officer failed to furnish the recorded reasons for issuance of notice under Section 148 of the Income-tax Act, 1961 before completion of reassessment.

Analysis: The additional ground admitted raises a pure question of law concerning the reopening of assessment under Sections 147 and 148 of the Income-tax Act, 1961. The assessee requested that the return filed earlier be treated as return under Section 148 and repeatedly sought supply of the recorded reasons for reopening; those recorded reasons were not furnished prior to completion of reassessment. Judicial precedents require that the power to reopen an assessment is exceptional and the recorded reasons constituting the basis for reopening must be furnished to the assessee when sought so as to enable objections; non-supply of such reasons before completion of reassessment prevents effective exercise of the right to object and vitiates the reassessment process.

Conclusion: The reassessment proceedings and consequential reassessment order are quashed for failure to furnish the recorded reasons for reopening; matter decided in favour of the assessee.

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