TaxTMI 
TaxTMI 
2011 (1) TMI 348
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....first fold of submission, he pleaded that since Ld. AO failed to serve the effective notice u/s 148 within a period of 6 years from the end of the asstt. year as provided u/s 149 (1)(b) of the Income Tax Act is not justified to pass the impugned asstt. order. In his second fold of submission, he has pleaded that reopening of asstt. is bad in the eyes of law. In his third fold of grievance, he pleaded that AO is not justified in making an addition of Rs. 49 lacs on account of alleged unexplained gifts received by the assessee. The assessee further pleaded that AO has erred in charging the interest u/s 234 (A) and 234(B) of the Income TaxAct. 2. Ld. Counsel for the assessee at the very outset submitted that first preliminary issue i....
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....o assessee by the AO by 31st March,. 2008 rather these were supplied to the assessee vide letter dated 15th May, 2008. For buttressing his contention, he took us through the copy of notice as well as reasons available on pages No. 5, 11 and 12 of the paper book. On the strength of Hon'ble Delhi High Court's decision, he contended that assessment has to be declared as invalid. 3. Ld. DR on the other hand contended that in the case of Haryana Acrylic a regular asstt. u/s 143(3) was made. In the present case, it is only 143(1). Thus there is no regular assessment in the present case. She further contended that observations made by the Hon'ble High Court were in respect of the issue whether AO has supplied the reasons or not. The Hon'....
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....sons supplied to the petitioner in September, 2004 be disregarded so also the objections filed by it as also the impugned order dated 2-3-2005 and the reasons noted in the said form be now taken as the reasons for the issuance of the notice under section 148 and the petitioner may now prefer his objections, if any, and thereupon the Assessing Officer be directed to pass a speaking order. In other words, such an argument requires us to sweep all the proceedings emanating from the supply of reasons in September 2004 and culminating in the passing of the order dated 2-3- 2005 'under the carpet', as it were. And, starting the process as per the directions given in GKN Driveshafts (India) Ltd.'s case (supra) afresh considering the reasons noted ....
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....at year. This means that a notice under section 148, in the present case, could not, in any event, have been issued after six years from the end of the assessment year 1998-99, i.e., after 31-3-2005. In whichever way we look at it, a notice under section 148 without the communication of the reasons therefor is meaningless inasmuch as the Assessing Officer is bound to furnish the reasons within a reasonable time. In a case, where the notice has been issued within the said period of six years, but the reasons have not been furnished within that period, in our view, any proceedings pursuant thereto would be hit by the bar of limitation inasmuch as the issuance of the notice and the communication and furnishing of reasons go hand-in-hand. The e....