INCOME TAX ACT, 1961

Section ???

Reassessment - Notice under section 148 - AO not disposed of assessee's objections by passing speaking order -

AO issued notice under section 148 as to reopen assessment. Assessee challenged the notice pleading that assessee had raised various objections and AO simply brushed them aside without dealing them.Held: Order disposing of assessee's objections was not a speaking order and lacked any reason, although there was no requirement for elaborate reasons, but a speaking order was to really speak the mind of AO exercising quasi-judicial function, this not being an empty formality even if he had a reason to believe that income had escaped assessment and, therefore, objections were not to be accepted. It became bounden duty to exercise this satisfaction in clear and specific words so as to also convey to the party concerned that in his exercise of discharge of his duty as a quasi-judicial authority, he had arrived at a conclusion, so far as objections were reassessed. There may not be requirement of exhaustive elaborate essay, while discussing the reasons, but same has to be clear in conclusion, satisfying the need of same being a speaking order. Accordingly, AO was directed to decide assessee's objections in accordance with law.

Relied:SABH Infrastructure Ltd. v. Asstt. CIT (2017) 398 ITR 198 (Del-HC) : 2017 TaxPub(DT) 4248 (Del-HC) and GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2013-14

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