2025 (11) TMI 1978

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....tself for the sole reason that the Assessing Officer had disposed of the assessee's objections to reopening in light of GKN Drive shaft GKN Driveshafts (India) Ltd. Vs. ITO, 259 ITR 19 (SC). That being the case, we note that the tribunal's recent order in the Revenue' appeal ITA No. 1152/Del/2020, dated 27.12.2024 in ITO Vs. Hardeep Singh has already decided the very issue in the assessee's favour and against the department as under: "2. The facts of the case as emanating from records are; Notice u/s. 148 of Income Tax Act, 1961(hereinafter referred to as 'the Act') was issued to the assessee on 23.03.2018. In response to the said notice, the assessee filed return of income on 05.05.2018 declaring income of Rs. 1,34,955/- and agricultural income of Rs. 2,70,468/-. The assessee filed objections against reopening of assessment on 23.08.2018. The contention of the assessee is that the Assessing Officer (AO) in violation of the law laid down by the Hon'ble Supreme Court of India in the case of GKN Driveshafts (India) Ltd vs ITO, 259 ITR 19 completed the assessment without disposing of objections of the assessee by a separate order. The AO vide assessment order d....

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.... been initiated on the basis of cash deposits and copy of reasons u/s. 148 of the Act have already been supplied to the assessee and the assessee is now required to explain the source of cash deposits along with documentary evidences. Thus, a perusal of letter would show that it does not deal with the detailed objections filed by the assessee against reopening of assessment. The ld. Counsel for the assessee submitted the various High Courts including jurisdictional High Court have held that the law laid down by Hon'ble Supreme Court of India has to be necessarily followed. If any order is passed in violation of the law laid down by Hon'ble Apex Court it is without jurisdiction. To buttress his arguments he placed reliance on following decisions:- i. Ferrous Infrastructure P. Ltd. vs DCIT, 2015 (5) TMI 871 (Delhi HC); ii. KSS Petron P Ltd. vs ACIT 2016 (10) TMI 1112 (Bom) iii. CIT vs. M/s. Pentafour Software Employee's Welfare Foundation, 418 ITR 427 (Madras); iv. ITO (Exemption) vs ICFAI University Dehradun, 2019 (5) TMI 1389 (ITAT Del); and v. Shri S Subash Chand Nahar vs DCIT, 2023 (11) TMI 7 (SC). 5. We have heard the submiss....

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....parate, speaking order is fatal to the assessment. The Hon'ble Delhi High Court in the case of Ferrous Infrastructure P. Ltd. (supra) on the issue of non compliance of directions of Hon'ble Supreme Court of India in the case of GKN Driveshafts (supra) held:- "8. We may also point out that the second issue raised by the learned counsel for the petitioners also deserves some consideration. In GKN Driveshafts (supra), the Supreme Court had directed as under:- "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. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the assessing officer is bound to dispose of 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 abovesaid five assessment yea....

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....tion the same, in the event the assessee is aggrieved by such an order. Therefore, to state that it would be sufficient for the Assessing Officer to deal with the objections in the assessment order and thereafter, if the assessee is aggrieved, he can file a statutory appeal, is a proposition which would be against the principles of natural justice. Therefore, if an order violates the law laid down by the Hon'ble Supreme Court, then it has to be necessarily held to be an order without jurisdiction. The law declared by the Hon'ble Apex Court is a binding character and is a source of law and to itself which will bind all authorities. 37. xxxxxxx 38. xxxxxxx 39. The Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. (supra) had clarified that when a notice under Section 148 of the Act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek for reasons for issuing such notice. Further, it was held that the Assessing Officer is bound to furnish reasons within a reasonable time, on receipt of the reasons, the noticee is entitled to file objections and the Assessing Officer is bound to dispose of the....