TaxTMI 
TaxTMI 
2016 (2) TMI 1398
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. That Ground no 3 dismissed by ld. CIT(A) wherein the assessee challenged the assessment framed without disposing of objections raised to reopening the assessment is illegal and bad in law is opposed to following judgments: a) GKN Driveshafts (India ) Ltd. vs. ITO & Ors, 259 ITR 19 (SC). b) General Motors India (P) Limited vs. DCIT 354 ITR 224 (Guj.) c) Arvind Mills Ltd. vs. Asstt. Commr. of Wealth Tax, 270 ITR 469 (Guj.) wherein it has been held that the AO must pass an order by disposing of objections to the reasons recorded before passing any assessment order u/s 148 of the Act. 3. That the ld. CIT(A) has grossly erred in law in confirming the addition of Rs. 2,10,000/- being income of f....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and proper sanction has not been obtained u/s 151 of the Act. The JCIT, Hoshiarpur, Range- 1, Hoshiarpur has given his approval on 27.03.2013 for issuing notice u/s 148 of the Act. The proceedings are not initiated merely based on presumptions but on the facts of the case which were concluded after property enquiry. I have also pursued the case laws relied upon by the assessee and finds that the case of the assessee is not covered by these decisions. In view of the above fats the objections raised by the assessee have no logic and therefore the same are rejected." 4. The ld. CIT(A) took note of the above observations of the AO dealing with and rejecting the assessee's objections to the reopening of his completed assessment. 5. The gr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ereafter, the AO may pass an assessment order; that it is not open to the AO to decide the objection to the notice issued u/s 148 of the Act by a composite assessment order; and that the AO is required to first decide the objection of the assessee filed u/s 148 and serve a copy of the order on the assessee and after giving some reasonable time to the assessee for challenging the order, it is open to him to pass an assessment order. The Hon'ble High Court quashed the order on the objection to the notice u/s 148 of the Act and the assessment order passed in pursuance of this, as this was not done by the AO in that case. It would be appropriate to reproduce the exact observations of the Hon'ble High Court as under: "23. From the afore....
X X X X Extracts X X X X
X X X X Extracts X X X X
....148 and the assessment order passed under the Act deserves to be quashed." 7. Therefore, as evident from the observations of their Lordships in "General Motors India Pvt. Ltd." (supra), the obligation to decide the objection raised by an assessee against a notice issued u/s 148 of the Act, first, i.e., prior to ad separate from the assessment order, is not a mere technicality, as is tried to be made out by the Department. It is a binding mandate and in the present case too, this mandate has not been followed. No decision contrary to "General Motors India Pvt. Ltd. " (supra) has been cited before us by the Department. 8. Hence, respectfully following "General Motors India Pvt. Ltd." (supra), it is held that the ld. CIT(A) erred in obse....