2025 (2) TMI 1496

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....NT (PER: HON'BLE MR JUSTICE KRISHNA S DIXIT) The Revenue is in Intra-Court Appeal for laying a challenge to a learned Single Judge's order dated 01.06.2023 whereby Respondent - Assessee's W.P.No.2392/2019 (T-IT) having been favoured, the following relief has been accorded: "13. Accordingly, the order of reassessment dated 30.12.2018 vide Annexure-K is set aside. Consequently, the notice dated 30.12.2018 at Annexure-L and the notice dated 30.12.2018 at Annexure-M are set aside. Further the notice issue under Section 148 at Annexure-D is also set aside." 2. Learned Sr. Panel Counsel appearing for the Revenue submits that non-passing of orders on Assessee's objection to reopening of Assessment proposal is only a curable i....

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.... learned Sr. Advocate appearing for the Assessee that the reasons for issuing Notice under Section 143(2) of the 1961 Act are once communicated and Objections filed by the Assessee have not been considered, then the proceedings of re- Assessment are liable to be voided, is supported by the decision in GKN DRIVESHAFTS supra, wherein the Apex Court has observed as under: "We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under Section 148 of the Income tax Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notices. The assessing officer is bound to furnish reasons within a reasonable time....

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....in the Division Bench of this Court has rightly held that the mandatory procedure of disposal of objections by the Assessing Officer not having been followed, the order of assessment cannot be sustained. If that were to be so, the assessment order issued under Section 143(3) read with Section 147 requires to be set aside and the question of issuing notice under Section 148 would not arise. 12. The contention of the learned counsel for the revenue relying on the judgment of the Madras High Court in the case of Home Finders (supra) cannot be accepted in light of the declaration of the Division Bench of this Court in the case of Deepak Extrusions stating that the procedure prescribed in GKN Driveshafts (supra) is a mandatory procedure....