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| The Tax Publishers2020 TaxPub(DT) 1274 (Mad-HC) INCOME TAX ACT, 1961
Section 147
Where AO not furnished reason for reopening the assessment along with reassessment notice 148, the order of reassessment could not be upheld 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.
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Reassessment - Validity - Reason for issuing reassessment notice not furnished to assessee -
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.
REFERRED : GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC).
FAVOUR : In assessee's favour.
A.Y. :
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