INCOME TAX ACT, 1961

Section 147 Section 148

Reassessment - Supply of reasons recorded - Print out of recorded reasons supplied by AO instead of original signed copy -

The assessee vide Letter, dated 11-10-2017 had requested for a copy of reasons recorded by the AO before the issuance of notice under section 148 however, instead of providing copy of the signed reasons originally recorded by the then AO at the time of issue of notice under section 148, a printout was provided by the incumbent AO which also contained queries raised by him the same was in violation of the procedure laid down by the Supreme Court in case of GKN Drivehafts.Held: Where the reasons so recorded were duly supplied to the assessee even though not in the original format as recorded by the AO, there was no infirmity in the action of the AO. The essence and substance of the requirement as laid down by the Supreme Court was to allow the assessee to have access to the contents of the reasons so recorded for reopening the matter and where the assessee so desire, he has the liberty to submit his objections against such reopening. Therefore, in the instant case requirement of supplying the reasons had been duly complied with by the AO and thereafter, where the assessee had chosen not to object to such reopening after receiving the copy of the reasons so recorded, it had not caused any prejudice to the rights of the assessee and the contentions so advanced cannot be accepted.

REFERRED : GKN Driveshafts (India) Limited v. ITO (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC), Rajasthan High Court in the case of M/s. KC Mercantile v. Dy. CIT ITA No. 292/2016 and CIT v. Maniben Vilji Shah (2006) 283 ITR 453 (Bom-HC) : 2006 TaxPub(DT) 46 (Bom-HC).

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 147 Section 148

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