The Tax Publishers2019 TaxPub(DT) 1026 (Guj-HC)

Income Tax Act, 1961

Section 148

Where assessee was not furnished with reason for reopening the assessment by AO along with reassessment notice under section 148, the order of reassessment could not be upheld as AO is duty bound to furnish the same, as the assessee could not be deprived of its right to file objections against issuance of notice.

Reassessment - Reason for issuing reassessment notice not furnished to assessee - Validity -

Assessee-company was issued reassessment notice, which was assailed by it contending that reasons for reopening the assessment were not furnished by AO whereas it was the duty of the AO to furnish the same along with the notice under section 148. Held: When a notice under section 148 is issued, the proper course of action for the assessee is to file return and if he so desires, to seek reasons for issuing notices and AO is bound to furnish reasons within a reasonable time. On receipt of reasons, the assessee is entitled to file objections to issuance of notice and the AO is bound to dispose of the same by passing a speaking order.

Followed:GKN Driveshaft (India) Ltd. v. ITO (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 0734 (SC), Arvind Mills Ltd. v. Asstt. CWT (2004) 270 ITR 469 (Guj.) : 2004 TaxPub(DT) 1854 (Guj-HC)Relied:Garden Finance Ltd. v. Asstt. CIT (2004) 268 ITR 48 (Guj.) (FB) : 2004 TaxPub(DT) 1423 (Guj-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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