2019 (12) TMI 1702

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....red to as the CIT(A)] relevant to assessment year 2007-08. 2. The Revenue has challenged the order of Ld. CIT(A) deleting the addition of Rs. 2,14,31,226/- on account of bogus purchases and directing the AO to estimate the addition at 3% of the total bogus purchases whereas the assessee by way of cross examination has challenged jurisdiction of the AO to frame the assessment under section 143(3) read with section 147 of the Act. Therefore, we would like to adjudicate first the legal issue raised by the assessee in the cross objection. 3. We observe that the cross objection filed by the assessee is delayed by 19 days and the assessee has filed petition for condonation of delay along with affidavit of the party explaining the reason for....

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....the paper book wherein the letter dated 24.01.2019 and 14.02.2019 were filed wherein the specific requests for supplying the reasons have been made to the AO. The Ld A.R. finally drew our attention to page No.10 of the paper book dated 15.02.2019 addressed by the AO to the assessee wherein the reasons were supplied as recorded under section 148(2) of the Act. The Ld. A.R. vehemently submitted before the Bench that since the AO has failed to supply reasons to the assessee during the assessment proceedings or during the proceedings before the Ld. CIT(A), therefore assessment as framed by the AO under section 143(3) read with section 147 of the Act is invalid and void ab initio. In defence of his arguments, the Ld. A.R. relied on a series of d....

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....1.04.2014, 24.01.2019 and 14.02.2019 to the AO to supply the reasons recorded which were supplied by the AO only during the pendency of appeal proceedings before the Tribunal on 15.02.2019. Thus the assessee is deprived of filing the objections to the reassessment proceedings during the assessment proceedings. Under these circumstances, we are not in a position to uphold the assessment order on the ground of non furnishing of reasons to the assessee till the completion of assessment. In the case of CIT vs. Videsh Sanchar Ltd. (supra) the Hon'ble Bombay High Court has held that reassessment is not valid where the reasons recorded under section 148(2) of the Act for reopening the reassessment was not furnished to the assessee before the compl....