TaxTMI 
TaxTMI 
2018 (4) TMI 1418
X X X X Extracts X X X X
X X X X Extracts X X X X
....2007-08 declaring total income of ` 31,66,816/- besides agricultural income of ` 1,75,000/- on 31.3.2008. The return was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') and subsequently the assessment was reopened u/s 147 of the Act by issue of notice u/s 148 and completed the assessment u/s 143(3) r.w.s. 147 on total income of ` 47,55,478/- apart from the agricultural income of ` 1,35,000/-. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and agitated before the CIT(A) with regard to the issue of non supply of the reasons for reopening the assessment, apart from the technical ground of the validity of issue of notice u/s 148 of the Act, the assessee also challenge....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... reasons recorded to the assessee. 5. The Assessment order is liable to be quashed for not supplying the reasons recorded for issuing notice u/s. 148, even at the specific request of the assessee. 6. The appellant pleads for permission to add, amend, modify, and / or alter any of the above grounds at the time of hearing. For these and any other reasons that may be submitted at the time of hearing the appellant pleads for relief. 3. Ground Nos.4 & 5 are related to the validity of reassessment made u/s 147 r.w.s 143(3) of the Act without supplying the reasons recorded for reopening of the assessment by the A.O. During the appeal hearing, the Ld. Counsel for the assessee submitted that the assessee has made the request for supply of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....recorded for the issue of notice u/s 148 of the Act. However, the A.O. has not supplied the reasons. As per the Hon'ble Supreme Court decision in the case of GKN Driveshafts (India) Limited Vs. ITO and Others cited (supra), once the notice u/s 148 of the Act is issued, the proper course of action is to file the return and if the assessee so desires to seek the reasons for issue of notice and the A.O. is bound to furnish the reasons within a reasonable time. On receipt of the reasons, the assessee is entitled to file objections to issuance of notice and the A.O. is bound to dispose of the same by passing speaking order. The assessing officer has not followed the above law laid down by the Hon'ble Supreme Court. Non-furnishing of reasons to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as it stood immediately before the amendment of said sub-section by the Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, reassessment or recomputation as specified in sub section (2) of section 153, every such notice referred to in this clause shall be deemed to be a valid notice: Provided further that in a case- (a) where a return has been furnished during the period commencing on 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under clause (ii) of sub section (2) of section 143 after the expiry of twelve months specified in the proviso to clause (ii) of sub sectio....