TaxTMI 
TaxTMI 
2016 (11) TMI 1627
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....return of income for the impugned assessment year on 31-03-2006 declaring total income of Rs. 3,53,041/- and agriculture income of Rs. 48,930/-. A search action u/s. 132 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was carried out in the case of Chhoriya Group on 22-08-2008. During the course of search apart from other documents and papers, a rough cash book was seized by the Department. On the basis of said rough cash book it was alleged that the assessee had advanced Rs. 58,00,000/- on interest to the Chhoriya Group during the period 01-04-2004 to 31-03-2005. Reassessment proceedings were initiated against the assessee and accordingly notice u/s. 148 of the Act was issued to the assessee on 29....
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....he grounds of appeal the assessee has challenged the additions made during reassessment proceedings as well as the validity of the notice issued u/s. 148 r.w.s. 147 of the Act. Although, the assessee had raised the ground before the Commissioner of Income Tax (Appeals) with respect to violation of the procedure laid down for deciding the objections against reopening of the assessment as mandated by the Hon'ble Supreme Court of India in the case of GKN Driveshafts (India) Ltd. Vs. Income Tax Officer (supra), the ground was inadvertently not taken in the grounds of appeal before the Tribunal. The assessee has raised the said ground as additional ground. 3.1 The ld. AR pointed that notice u/s. 148 was issued to the assess....
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....urt has held that the Assessing Officer is duty bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. The Hon'ble Bombay High Court in the case of Asian Paints Ltd. Vs. Deputy Commissioner of Income Tax & Anr. reported as 296 ITR 90 has held that after passing of the order rejecting the objections, the Assessing Officer shall gave four weeks time from the date of service of order rejecting objections, before proceeding further. The ld. AR further placed reliance on the recent decision of Hon'ble Jurisdictional High Court in the case of KSS Petron Private Ltd. ....
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....for reasons for issuing notice u/s. 148. 31-07-2012 Reasons for reopening supplied by Assessing Officer to the assessee. 13-08-2012 Request letter from assessee to supply copy of 'rough cash book' seized during search operation on Chhoriya Group. 22-08-2012 Assessee filed objections for initiating reassessment proceedings. 25-03-2013 On receipt of copy of 'rough cash book' seized during the search operation on Chhoriya Group, the assessee filed revised objections to reassessment proceedings. 28-03-2013 Assessment order u/s. 143(3) r.w.s. 147 passed. 6. A perusal of the above chronology events show that the Assessing Officer has not passed any order disposing of the objections filed by the ....
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....sons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. 8. The Hon'ble Bombay High Court in the case of Asian Paints Ltd. Vs. Deputy Commissioner of Income Tax & Anr. (supra) has further clarified that if the Assessing Officer does not accept the objections, he shall not proceed further in the matter within a period of four weeks from the date of service of the order on objections to the assessee. 9. The Assessing Officer is duty bound to decide the objections of the assessee against initiation of reassessment proceedings by passing a separate speaking order. Thereafter, the Assessing Officer shall give....