2021 (2) TMI 604

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....s recorded before completing the assessment under section 143(3) r.w.s. 147 of the Act. 3. Briefly the facts are, the assessee is an individual. For the assessment year under dispute, she filed her return of income on 16-09-2010 declaring total income of Rs. 52,32,850. The return of income filed by the assessee was initially processed under section 143(1) of the Act. Subsequently, the Assessing Officer having reason to believe that income chargeable to tax has escaped assessment, reopened the assessment under section 147 of the Act by issuing notice dated 31-03-2017 under section 148 of the Act. In course of assessment proceedings, the Assessing Officer alleged that as per the information received from Investigation Wing, Ahmedabad, the ....

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....from the show cause notice issued in course of assessment proceedings. Further, he submitted, in response to the show cause notice the assessee had furnished a reply on the allegation brought against her regarding benefit received towards Client Code Modification by certain broker. Thus, he submitted, the assessee was very much aware of the reason on the basis of which assessment was reopened under section 147 of the Act. Therefore, no prejudice is caused to the assessee, even if, the Assessing Officer has not formally communicated the reasons for reopening of the assessment to the assessee. In this context, he relied upon the observations of learned Commissioner (Appeals). Further, the learned Departmental Representative submitted, the Ass....

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....at reason for reopening of assessment has been fully reproduced in the assessment order. In our view, the aforesaid reasoning of learned Commissioner (Appeals) are not valid for upholding the assessment order passed without furnishing reasons recorded and not in conformity with the settled principles of law. Now, it is fairly well settled that once the assessee complies with the notice issued under section 148 of the Act and seeks reasons for reopening of assessment, the Assessing Officer is duty bound to furnish the reasons of reopening before proceeding further with the assessment. This is for the simple reason of enabling the assessee to raise objections against the validity of reopening of assessment under section 147 of the Act. Unless....