Court sets aside assessment orders for failure to follow procedural requirements, directs Assessing Officer to consider objections before finalizing assessments.

The Court set aside the assessment orders due to the Assessing Officer's failure to pass speaking orders before proceeding with assessments, as mandated by the Supreme Court in GKN Driveshafts case. The Assessing Officer was directed to consider the objections raised by the assessee and pass speaking orders before finalizing the assessments, ensuring compliance with procedural requirements. The Court emphasized the importance of adhering to established legal principles and directed that the issue of limitation should not be raised by the assessee. Consequently, the writ petitions and pending applications were disposed of in accordance with the Court's directions.

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Issues:
1. Whether the Assessing Officer followed the proper procedure before framing assessment orders under Sections 147/148 of the Income Tax Act, 1961Rs.
2. Whether the Assessing Officer passed a speaking order prior to proceeding with the assessment proceedingsRs.
3. Whether the assessment orders should be set-aside due to the failure to pass speaking orders as per the decision of the Supreme Court in GKN Driveshafts caseRs.

Analysis:
1. The writ petitions involved identical issues concerning assessments for the years 2002-03 and 2004-05 under Section 143(3) of the Income Tax Act, 1961. The Revenue later sought to reopen the assessments under Sections 147/148 through separate notices dated 30.03.2009. The assessee requested reasons for reopening, objected to the same, and awaited speaking orders as per the Supreme Court decision in GKN Driveshafts case. However, the Assessing Officer proceeded with framing the assessment orders on 31.12.2009 without passing speaking orders.

2. The petitioner contended that the Assessing Officer did not adhere to the procedure mandated by the Supreme Court in GKN Driveshafts case by not passing a speaking order before framing the assessment. Citing a previous decision, the petitioner argued for the necessity of passing speaking orders. The Court acknowledged the legal position established by the Supreme Court, emphasizing the requirement for passing speaking orders before proceeding with assessments. In this case, as no speaking orders were passed and objections were only addressed in the assessment orders, the Court directed the assessment orders to be set-aside. The Assessing Officer was instructed to consider the objections raised by the assessee and pass separate speaking orders before proceeding with the assessments.

3. The Court's decision was based on the clear legal principle outlined by the Supreme Court in GKN Driveshafts case, emphasizing the importance of passing speaking orders before finalizing assessments. By setting aside the assessment orders and instructing the Assessing Officer to address the objections through speaking orders, the Court ensured compliance with the procedural requirements. The Court also directed that the assessee should not raise the issue of limitation. Consequently, the writ petitions and pending applications were disposed of in accordance with the Court's directions.

This detailed analysis of the judgment highlights the procedural lapses in the assessment process and the Court's intervention to ensure compliance with legal requirements based on established legal principles.

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