2015 (9) TMI 1119

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....nue for our consideration: "1) Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in applying the ratio of the Apex Court in GNK Driveshafts (India) Ltd. Vs. ITO 259 ITR 19 (SC) when the facts are contrary to the facts of the instant case? 2) Whether on the facts and in the circumstances of the case and in law, the Tribunal had ignored the fact that in the proceedings before the AO in subsequent hearings prior to assessment, the firm had neither sought for the reasons recorded, since by interference, they were already aware of the same?" 3. The respondent-assessee filed it's return of income for the Assessment Year 200809 declaring total income of Rs. 7.67 lakhs. This return of income....

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.... 6. A further appeal was preferred by the respondent to the Tribunal. The impugned order of the Tribunal records the undisputed fact that the respondent-assessee had sought for reasons for reopening notice dated 26 March 2010 from the Assessing Officer. The reasons were admittedly not furnished to the respondentassesee before the completion of the reassessment proceedings. The impugned order places reliance upon the decision of Apex Court in GNK Driveshafts (India) Ltd. Vs. ITO 259 ITR 19 wherein it has been specifically provided that the Assessing Officer is bound to furnish reasons for issuance of reopening of notice when sought for by the assessee. Further, reliance was placed upon the decision of this Court in CIT Vs. Videsh Sanchar Nig....

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....ing of an assessment. These recorded reasons as laid down by the Apex Court must be furnished to the assessee when sought for so as to enable the assessee to object to the same before the Assessing Officer. Thus in the absence of reasons being furnished, when sought for would make an order passed on reassessment bad in law. The recording of reasons (which has been done in this case) and furnishing of the same has to be strictly complied with as it is a jurisdictional issue. This requirement is very salutary as it not only ensures reopening notices are not lightly issued. Besides in case the same have been issued on some misunderstanding/misconception, the assessee is given an opportunity to point out that the reasons to believe as recorded ....