2017 (12) TMI 54

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....2010-11. 2. The assessee filed total six grounds of appeal along with the appeal memo but the grounds of appeal are argumentative and lengthy, hence the assessee filed revised and concise grounds of appeal covering all the issues during the appeal hearing on 21.11.2017. Hence on the request of the Ld.AR revised grounds of appeal are taken up for adjudication. 3. Ground No.1 and 5 of revised appeal are general in nature which does not require specific adjudication. 4. Ground No. 2 is related to the validity of reassessment made u/s 147 r.w.s.143(3) of I.T.Act, without communicating the reasons recorded for reopening the assessment. In this case, the assessee filed the return of income on 29.09.2010 admitting total income of Rs. 11,30,830/....

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....mplied with the mandate of Hon'ble Supreme Court cited supra but the AO failed to furnish the reasons, hence the assessment made u/s 143(3) r.w.s 147 is invalid and required to be quashed. The assessee relied on the decision of Hon'ble High Court of Calcutta in the case of Berger Paints India Ltd. Vs. ACIT [139 Taxmann 200] (Cal), wherein Hon'ble High Court held that the assumption of jurisdiction of assessing officer u/s 147 depends upon existence of reasons followed by communication thereof to assessee and if notice served under section 148 is challenged, AO cannot proceed with assessment under section 147 unless reasons are communicated. In the instant case, the contention of the assessee is that the assessee has complied with the notice....

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.... the AO is bound to dispose of the objections by passing speaking order. Hon'ble High Court of Calcutta in the case of Berger Paints India Ltd. Vs. ACIT cited supra held that the AO cannot proceed with the assessment u/s 147 unless the reasons are communicated. We have called for the records and directed the Ld.DR to clarify whether the reasons were communicated to the assessee or not and the Ld.DR fairly conceded that the reasons were not communicated. We have also verified the assessment records and noticed that the order sheet of the assessment do not indicate communication of reason to the assessee. In the case of CIT Vs. Videsh Sanchar Nigam Ltd. [340 ITR66], Hon'ble Bombay High Court in 21 taxman.com 23 (Bom) held that non furnishing ....