2022 (7) TMI 1516

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..... That the ld. CIT(A) has grossly erred in law and facts in upholding validity of assessment order without providing reasons of reopening of the assessment by the AO in spite of the specific request made by the assessee during the course of assessment proceeding. 3. (a) That the ld. CIT(A) has grossly erred in law and facts in estimating the cost of construction of the house sold on the basis of assumption only at Rs. 2,50,000/- as against the actual cost incurred of Rs. 4,36,500/-. (b) That the ld. CIT(A) Jaipur has grossly erred in law and facts in not accepting the cost of construction of the house Rs. 4,19,040/- as valued by the approved Registered Valuer's (Mahendra Singhal).'' 2.1 At the outset of the hearing, the ld. AR straight....

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.... in the case of GKN Driveshafts (India) Ltd. Vs ITO, 2003 (1) SCC 72, Hon'ble Bombay High Court in the case of CIT vs Videsh Sanchar Nigam Ltd. 2012 (340) ITR 66, Hon'ble Bombay High Court in the case of CIT vs Trend Electronics, 2015 (379) ITR 456, decision of Hon'ble Karnataka High Court in the case of Pr. CIT and Another vs V. Ramaiah (ITA No. 451 of 2017 dated 02-07- 2018) and the decision of Hon'ble Supreme Court in the case of Pr. CIT vs V Ramaiah, reported in (2019) 262 Taxman 16 and submitted that since the AO has failed to furnish the reasons, therefore, the entire proceedings of reopening of assessment may be quashed. 2.2 On the other hand, the ld. DR relied on the orders of the lower authorities. 2.3 We have heard both the part....

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.... the same by passing a speaking order. .In the instant case, as the reasons have been disclosed in these proceedings, the assessing officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment in respect of the above said five assessment years.'' As per record, since the reasons recorded for reopening of the assessment were not furnished to the assessee till the completion of the assessment, therefore, in our considered view, the reassessment order in these circumstances of the case, cannot be upheld. For reaching this conclusion, we draw strength from the decision of Hon'ble Bombay High Court in the case of CIT vs Videsh Sanchar Nigam Ltd (2012) 340 ITR 66 wherein Hon'ble Bombay Hi....

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....ng authority of the jurisdiction to undertake such reassessment proceedings, as the case may be. 9. In the present case, admittedly, such reasons were not supplied to the assessee during the contemporary period before going ahead with the reassessment proceedings. Therefore, the Tribunal in our opinion was perfectly justified in quashing such reassessment order. 10. We do not find any substantial question of law arising in the matter. Therefore, the appeal of the Revenue stands dismissed. No costs.'' The SLP of the Revenue against the above order of Karnataka High Court (supra) has also been dismissed by the Hon'ble Supreme Court reported in (2019) 262 Taxman 16. Therefore considering the totality of the facts and circumstances of the ....