INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Non-speaking order communicated, pursuant to which assessment order passed -

Assessee challenged the assessment order passed by Revenue pursuant to the reopening of assessment notice under issued section 148. Revenue had also given reasons for reopening the assessment prior to passing of order. However, after assessee had filed a detailed representation against reopening of the assessment revenue had proceeded to pass assessment order and therefore, it was sought to be assailed on the ground that the impugned proceedings were unsustainable. Tribunal however, dismissed the appeal of assessee. Held: A perusal of communication of relevant portion showed that this was a non-speaking order and merely conveyed the decision overruling objection of assessee. The exercise carried out by Revenue was contrary to the decision of Supreme Court in G.K.N Drive Shafts India Ltd. v. ITO (2002) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC). Therefore, assessment order passed by revenue was liable to be quashed and AO was directed to pass a speaking order in terms of the decision of the Supreme Court in G.K.N Drive Shafts India Ltd. v. ITO (supra) within a period of three months.

Followed:GKN Driveshafts (India) Ltd. v. ITO & Ors. (2002) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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