AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1461
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....lso the law applicable to the facts of the case. 2. The assessing officer did not supply copy of the reasons recorded for issue of notice a's 148 of the Act and consequently the entire reassessment proceedings are liable to be quashed 3. Without prejudice to the above, the learned Commissioner of income Tax (Appeals) is not justified in sustaining the addition of Rs. 10,22,550/- made by the assessing officer towards unexplained cash credits a/s 68 of the Act, 1961. 4. Any other ground that may be urged at the time of appeal hearing During the appeal hearing, the Ld.AR argued only one ground i.e. Ground No.2 and the remaining grounds were not argued. Therefore, ground Nos. 1,3 and 4 are dismissed as not pressed. 3. The only issue in this appeal is non-communication of reasons to the assessee for reopening of assessment. In this case, the assessee has not filed the returns of income for the A.Y. 2008-09.2009-10,2010-11 and 2011-12. A survey u/s 133A was conducted in this case and during the course of survey certain incriminating material was found and impounded by the AO. Consequently, the AO issued notice u/s 148 and the assessee filed the return of income admitting tota....
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....the reasons recorded as held by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd, [259 ITR 19]. The Ld.AR argued that in the instant case, the AO did not supply the copy of the reasons, hence the assessment made u/s 147 r.w.s. 143(3) is void-ab-initio and requested to set aside the orders of the lower authorities and quash the proceedings. The Ld.AR further submitted that though the Ld.CIT(A) in his order stated that the AR of the assessee has noted the reasons duly signing the order sheet, the same may not be equated with the communication of copy of the reasons recorded by the AO. The Ld.AR argued that it is mandatory requirement as per the decision of Hon'ble Supreme Court to supply the reasons. By non-supply of reasons, the assessee lost the opportunity of filing the objections, thus argued that the assessment made u/s 148 is against the principle of natural justice, hence requested to cancel the assessment. 6.1. The Ld.AR relied on the following decisions : (a) Hon'ble Delhi High Court in the case of Sabh Infrastructure Ltd. Vs. Asst. Commissioner of Income Tax (2017) [398 ITR 0198 (Delhi)] (b) Hon'ble Bombay High Court in the case of (i) CIT Vs. Tre....
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....his signature. The parties who are present at the time of hearing i.e. AR of the assessee as well as the officer conducting the hearing and recording the order sheet sign the order sheet after recording the proceedings. In the instant case, there is no signature of the officer recording the order sheet and hence in the absence of signature of officer recording the order sheet the same cannot be taken at face value and be treated as valid evidence for communication of reasons unless supported by any other evidence. In the instant case the same AR who supposed to have noted the reasons denied having supplied the copies of reasons recorded vide his letter dated 06.10.2016. As per the decided case laws, the reasons recorded required to be furnished to the assessee and it is not sufficient merely made known to the assessee. Communication of reasons is not a mere formality or arrangement or understanding between the Ld.AR and the AO, but it is a legal requirement, where the reasons recorded must be communicated to the assessee and then only the assessee would come to know the reasons recorded and furnish objections if any for reopening of the assessment. As per the decision of Hon'ble ap....
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....utta in the case of Berger Paints India Ltd. Vs. ACIT (Supra), 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 the assessee. If the notice served under section 148 is challenged, the AO cannot proceed with the 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 u/s 148 and the AO has not furnished the reasons recorded for issuance of notice u/s 148 despite the request made by the assessee. The Revenue could not place any evidence to controvert the argument of the Ld.AR that the reasons were not communicated. Thus the assessee's case is squarely covered by the decisions in the case of Berger Paints India Ltd. Vs. ACIT (Supra) and CIT vs. Trend Electronics (Supra). 9.1. The Hon'ble Bombay High Court in the case of CIT vs. Trend Electronics (Supra) following the decision of CIT vs. Videsh Sanchar Nigam Ltd and applying the decision of Apex court in the case of GKN Drive Shafts (India) Ltd. Vs. ITO held as under : "8. We find that the impugned order me....
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....guidelines in matters of reopening of assessments: (1) while communicating the reasons for reopening the assessment, the copy of the standard form used by the .AO for obtaining the approval of the Superior Officer should Itself be provided to the Assessee. This would contain the comment or endorsement of the Superior Officer with his name, designation and date. In other words, merely staling the reasons in a letter addressed by the AO to the Assessee is to be avoided;" 8.2. The Ld.AR also relied on the decision of CIT Vs. Trend Electronics (2015) [379 ITR 0456 (Bom)] which was discussed in Sarvaraya Sugars (supra). 8.3. In addition to the above, the Ld.AR placed reliance on the observations and decisions of Hon'ble Bombay High Court in the case of CIT Vs. IDBI Ltd. (2016) 97 CCH 0021 Mum HC vide para No.4 and 5 of the order which reads as under : "(iv) Mr. Malhotra, Counsel for the Revenue, submits that the Respondent Assessee was aware of the reasons for the reassessments. Thus, there was no violation of the principles of natural justice. In the above view, it is submitted that the question as framed be admitted for consideration. (v) We find that the question as framed....