2018 (9) TMI 1871

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.... short "the AO") dated 28.11.2008 under section 143(3) of Income Tax Act, 1961 (in short 'the Act').    2. Grounds raised by the assessee reads as under : (I) Reopening of assessment:   (1) On the facts and circumstances of the case and as per law, the learned Commissioner of Income-tax (Appeals) ought to have held that reopening of the assessment was time barred.   (2) The appellant further submits that the reopening is also bad in law as the necessary conditions for reopening were not satisfied.   (II) Disallowance of Rs. 6,63,371:   On the facts and circumstances of the case and as per law, the learned Commissioner of Income-tax (Appeals) erred in confirming disallowance of Rs. 6,63,371 of partne....

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....on of Hon'ble Gujarat High Court in the case of Sadbhav Engineering Ltd. 333 ITR 483 (Guj) submitted that in absence of any averment that the assessments are sought to be re-opened by reason of failure on the part of assessee to disclose fully and truly all material facts necessary for assessment for the relevant assessment year, the very initiation of proceedings u/s.147 by issuance of notice u/s.148 after expiry of four years from the end of relevant assessment year is bad and cannot be sustained.  The ld.Counsel further submitted that there was no new information came in the position of the AO as it is mentioned in para 2 of the assessment order that on verification of the case records, it is revealed that the assessee had paid ....

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....part of the assessment.  It is also noticed that assessee has filed objection vide letter dated 21.01.2013, but these objection has not been disposed by AO at all except making mention thereon in the assessment order.  The AO was required to dispose off objection, laid down by Hon'ble Supreme Court in the case of G.K.N.Drive Shafts Ltd. and Gujarat High Court in case of 259 ITR 19 and Hon'ble Gujarat High court in the case of Garden Finance Ltd. 268 ITR 48 (SC).  The AO is bound to dispose off objection filed by the assessee.  We further find that the AO has not alleged that there was a failure on the part of assessee when the information was already available on record.  Therefore, by applying ratio laid do....