2011 (7) TMI 1281

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.... Act, 1961. He has filed a paper book wherein he has enclosed the notice issued u/s 148 of the Income-tax Act, 1961. Although the notice was issued on 28.3.2007, but the Department has not disclosed the reasons for reopening the assessment and such reasons were supplied to him only on 26.4.2007 on the basis of application filed, seeking such reasons. The short submission of the assessee is that the proceedings taken for assessment under Section 148 are bad in law and, it is prayed that the order passed in pursuance of such proceedings be annulled. For this proposition, he relied on the decision of the Hon'ble Jurisdictional High Court in the case of Haryana Acrylic Manufacturing Co. Vs. CIT & Another - 308 ITR 38 (Delhi). Reliance was also ....

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....nt to one lakh rupees or more for that year.]." 5. The case of the assessee falls under the provisions of Section 149(1)(b) where the time limit expired on 31.3.2007. The Assessing Officer in this case has admittedly issued notice u/s 148 on 28.3.2007. No reasons were made available to the assessee which is a mandate required u/s 148(2) of the Act upon the Assessing Officer. The reasons were made available only subsequently on 26.4.2007 after an application in this regard was entertained by the AO. Identical situation was the subject matter of consideration before the Hon'ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. (supra). Hon'ble Delhi High Court at pages 60 & 61 of the said decision has made the follo....

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....asons, and November 5, 2007, when the said form annexed to the counter ITA affidavit was filed in this court, the validity of the notices under section 148 issued on March 29, 2004, and any proceedings pursuant thereto cannot be upheld." 6. The principle of this case was followed by the Tribunal in the case of Shri Balwant Rai Wadhwa (supra) where the Tribunal appreciated the Hon'ble Delhi High Court's decision and came to a conclusion that the plain reading of the exposition of law by the Jurisdictional High Court made it very clear that the issuance of notice and communication and furnishing of reasons would go hand-inhand. The reasons for reopening an assessment are to be supplied to the assessee before the expiry of six years in ....