2019 (10) TMI 84

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....ax for the Assessment Year 2011-12. On 27th March 2018, a notice under Section 148 of the Income Tax Act, 1961 (for short 'the said Act of 1961') was issued to the appellant proposing re-assessment of the alleged escaped income. After receiving a copy of the reasons recorded in the notice issued under Section 148 of the said Act of 1961, on 15th October 2018, the appellant filed objections. The appellant also made an application dated 22nd October 2018 to the jurisdictional Deputy Commissioner of Income Tax seeking a direction under Section 144A of the said Act of 1961. On 22nd October 2018, a notice was served to the appellant by the Deputy Commissioner of Income Tax, Central Circle-1, Mangaluru, to file objections within a period of one w....

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....ce with law under sub-section (3) of Section 143 read with section 147 of the said Act of 1961. He relied upon the decision of the Apex Court in the case of GKN DRIVESHAFTS (INDIA) LTD. vs. INCOME TAX OFFICER & ORS. in Civil Appeal Nos.7731-7737/2002 dated 25th November 2002. His submission is that as the Assessing Officer is bound by the order passed under Section 144A of the said Act of 1961, no interference can be made. 6. We have considered the submissions. It is necessary to note the law laid down by the Apex Court in the case of GKN DRIVESHAFTS (INDIA) LTD (supra)and in particular, what is held in paragraph 5 which reads thus: "5. We see no justifiable reason to interfere with the order under challenge. However, we clarify....

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....undisputed position that the Assessing Officer did not dispose of the objections prior to proceeding with the assessment further and proceeded to pass the order for assessment. Under the circumstances, it can be said that the mandatory procedure of disposal of the objection by Assessing officer before proceeding with the assessment has not been followed and exercise of power can be said as not only vitiated, but the order of assessment cannot be sustained. 12. If the decision of the Assessing Officer is illegal on the face of it, in our view, it would fall in the exceptional category of making departure from the normal principles of self impose limitation of not to interfere in a matter where there is existence of alternative statu....

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....arned counsel appearing for the appellant stated that the appellant is now not pressing the application made under Section 144A of the said Act of 1961. 11. Therefore, in our considered view, the order dated 28th November 2018 passed under Section 144A of the said Act of 1961 does not affect the applicability of the principles laid down in the aforesaid decision of the Apex Court. 12. Accordingly, we pass the following order: (i) The assessment order dated 26thDecember 2018 for the Assessment Year 2011-12 passed by the first respondent is hereby quashed and set aside; (ii) We direct the first respondent to decide the objections raised by the appellant by passing a reasoned order before undertaking the assessment in a....