TaxTMI 
TaxTMI 
2007 (9) TMI 351
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....UDGMENT 1. These appeals are filed both by the assessees and the Revenue questioning the correctness of the impugned common judgment dated December 31, 1998, passed in 1. T. A. Nos. 64 to 67/Bang/1997, 69 to 72/Bang/1997, 74 to 77/Bang/1997 and 79 to 82/Bang/1997 by the Income-tax Appellate Tribunal (hereinafter called as "the Tribunal" in short). These appeals are filed by each one of the assesses for different assessment years 1989-1990 to 1993-94. 2. The Revenue has also challenged the impugned judgment in the other connected appeals, it is aggrieved by the setting aside of the levy of penalty imposed by the assessing authority upon the assessees and affirmed by the first appellate authority and urged various legal contentions in suppo....
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....the Income-tax Act. The Tribunal, keeping in view the decisions of the Supreme Court in the case of GKN Driveshafts (India) Ltd. v. ITO reported in [2003] 259 1TR 19 and the Division Bench judgment of the Bombay High Court in the case of Allana Cold Storage Ltd. v. ITO reported in [2006] 287 ITR 1 which is followed by the Delhi High Court in the case of Smt. Kamlesh Sharma v. B. L. Meena, ITO [2006] 287 ITR 337 whereunder the Division Bench of the Delhi High Court after referring to the apex court decision in the case of GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19, the Delhi High Court, referred the matter to the Assessing Officer to proceed further from the stage of reviving objection statement from the assessee and pass a speaki....
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.... to be answered in favour of the Revenue and against the assessees and prayed for dismissal of the appeals of the assessees. 6. Sri Shankar, learned counsel for the assessees, contended that the Supreme Court interpreted section 148(2) of the Income-tax Act keeping in view the intent and object of assigning reasons in the notice to be served upon the assessees under section 148(2) of the Income-tax Act, officers of the Department after conducting search and seizure proceed to pass assessment order under section 148 of the Income-tax Act. Counsel contended reasons must be assigned with reference to the incriminating materials found at the lime of search and seizure to facilitate the assessees to respond to the same by submitting explanation....
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....): "We see no justifiable reason to interfere with the order under challenge. However, we c1ari that when a notice under section 148 of the Income-tax Act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons have been disclosed in these proceedings, the Assessing Officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessme....
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....hat the assessee is not entitled to a copy of the reasons recorded by the Assessing Officer. However, you are also informed that all the reasons would be put forth to you in the form of questionnaire after giving reasonable opportunity….." 12. In view of the aforesaid stand taken by the Assessing Officer the statutory requirement of section 148(2) of the Act has not been complied with in these cases. Therefore, the observations made by the Supreme Court in GKN Driveshafts (India) Ltd.'s case [2003] 259 ITR 19, with all force would be applicable to the fact situation of these cases. 13. For the aforesaid reason and on the basis of the observations of the three-judge Bench decision of the Supreme Court and other High Courts referred to su....