INCOME TAX ACT, 1961

Section 148

Reassessment - Reasons for reopening - AO refused to furnish reasons for issuing notice under section 148 -

Issue arose for consideration as to Whether the Tribunal was justified to remand the matter to AO when it is the case of assessee that no reasons for reopening have been furnished before the assessment by AO and consequently such assessment itself is null in view of the judgment of the Division Bench of this Court in the case of CIT v. Videsh Sanchar Nigam Ltd. (2012) 340 ITR 66 (Bom) : 2012 TaxPub(DT) 676 (Bom-HC). In GKN Driveshafts (India) Ltd [(2003) 1 SCC 72 : 2003 TaxPub(DT) 734 (SC)] it was held that when a notice under section 148 is issued, the proper course of action for the noticee is to file return and if he desires to seek reasons for issuing notice, the AO is bound to furnish reasons within a reasonable time. Considering the law laid down by Supreme Court, it was really not open to AO to refuse to furnish reasons for issuing notice under section 148. Therefore, notice under section 148 was set aside and accordingly quashed.