TaxTMI 
TaxTMI 
2021 (10) TMI 20
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....rder. 2. The Cross objection is delayed by 489 days. The Ld. A.R submitted that the assessee has filed a petition before the bench for condoning the delay. He submitted that the assessee had raised the ground on validity of reopening of assessment before Ld. CIT(A) and the same was decided against him. Hence the assessee could have raised the legal contention under Rule 27 of Appellate Tribunal Rules before the Tribunal. However, he has filed the cross objection only on abundant caution, as advised by his counsel, raising the above said legal issue. Accordingly, the Ld. A.R prayed the bench to condone the delay in filing the cross objection. 3. We heard Ld. D.R on this preliminary issue. Having regard to the submissions made in the pe....
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.... The order U/s. 147 made on 30.04.2013 by not following the guidelines and procedures laid down by the Apex Court in the case of GKN Drive Shafts (India) Ltd., V/s. ITO 259 ITR 19 in disposing of the written objection filed against the initiation of action U/s. 147 in a speaking order and giving an opportunity to the assessee to contest the validity of the initiation of 147 proceedings by filing an appeal before the CIT (Appeals), before completing the assessment U/s. 147 requires to be quashed as held by the Gujarat High Court in the case, of Vishwanath Engineers Vis. ACIT reported in 72 DTR (Guj) 113 and also applying the ratio of the Delhi High Court of Makhan Singh Gurucharan Singh (HUF) Vs. CIT Reported in 254 ITR 645/122 Taxmann 818 a....
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....r: "As regards the ground that the proceedings initiated u/s. 147 is not in accordance with the provisions of law and needs to be cancelled it is suffice to say that the information gathered during the survey as regards the amounts incurred towards construction of the hotel building & more importantly with not even a whisper about it in the return of income originally filed on 4.3.2012, prompted the AO to form a belief that income has escaped assessment. The case laws cited by the appellant are not applicable to the facts of his case & are in fact wholly extraneous to the facts on hand. In view of the above finding I hold that the assessing officer has followed the procedure as contemplate in the Act and I find that there ....
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....n not disposing of the objections before completion of the assessment is contrary to the procedure laid down by Hon'ble Supreme Court in the case of GKN Driveshaft (India) Ltd. (supra). Accordingly, the Ld. A.R contended that the impugned assessment order is liable to be quashed. In support of these contentions, the Ld. A.R. placed his reliance on the decision rendered by Hon'ble Karnataka High Court in the case of Deepak Extrusions Pvt. Ltd. Vs. DCIT (2017) 80 taxmann.com 77. 10. The Ld. D.R. contended that non-disposing of objections filed by the assessee before completion of assessment would not vitiate the assessment order passed by the A.O. In support of this proposition, the Ld. D.R. placed his reliance on the decision rend....
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.... annulled by following the jurisdictional High Court's decision. 12. We heard the rival contentions and perused the record. The Hon'ble Karnataka High Court has observed as under in the case of Deepak Extrusions Pvt. Ltd. (supra) with regard to the non following of procedure prescribed by Hon'ble Supreme Court in the case of GKN Drive Shafts India Ltd. (supra). "11. If the facts of the present case are examined in the light of aforesaid legal position, it is an admitted position that the reasons for re-opening of the assessment by issuing of the notice under Section 148 of the Act were supplied to the appellant assessee. It is also admitted position that the appellant assessee after receipt of such reasons raised obj....
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....pra) supports the case of the assessee. The other decisions of the Hon'ble Gujarat High Court and the Hon'ble Madras High Court referred to in the order of the CIT(A) being the decisions of the non-jurisdictional High Courts, are not binding in the light of the decision of the Hon'ble jurisdictional High Court. Consequently, we uphold the grievances projected by the assessee in ground No. 3 n) and hold that the order of assessment passed is vitiated and liable to be annulled. In view of the above conclusion, we are of the view that the other issue raised by the assessee in its appeal does not require examination." 14. Following the decisions rendered by the Hon'ble jurisdictional High Court in the case of Deepak Extrusion....