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| The Tax Publishers2020 TaxPub(DT) 2636 (Del-Trib) : (2020) 183 ITD 0211 : (2020) 208 TTJ 0507 : (2020) 082 ITR (Trib) 0235 INCOME TAX ACT, 1961
Section 147
Where reason for reopening of assessment as given to assessee were altogether different then reasons given to higher authorities. Reopening of assessment for all the three assessment years was invalid and quashed.
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Reassessment - Validity - Where reasons for reopening of assessment as given to assessee were altogehter different then reasons given to higher authorities -
AO initiated proceedings under section 147. for assessment year 1989-90- to 19901-92 High Court vide passed order for assessment year 91-92, 1990-91 and 1989-1990 on appeal filed by Commissioner. The assessee was not aggrieved with the order of coordinate bench for all these years where issue of reopening of assessment was not at all decided. In view of categorical direction of High Court where it had been held that the order was remanded to coordinate bench with liberty to parties to address arguments on all issues including on the aspect of reassessment in view of observation made by High Court assessee was at liberty to challenge reopening of assessment. Arguments of assessee on reopening of assessment were required to be dealt with in view of direction of High Court. The argument of assessee was that reasons given by AO at the time of reopening of assessment and reasons stated to be given before High Court were different.Held: On perusal of reasons supplied it to assessee and reasons some before High Court, it was apparent that both were altogether different. In substance they were but there should be ad verbatim. It cannot be the case of revenue that it gives few extracts of reasons to assessee to defend it against reopening of assessment and when cornered before higher authorities, the revenue comes out with detailed reasons recorded by AO . In fact in all circumstances AO is supposed to provide complete reasons recorded for reopening of assessment to facilitate assessee to defend itself against reopening of assessment. To keep few arrows in its quiver and only disclosing few arrows out of that is not expected from a revenue officer. As reasons recorded by AO produced before the High Court were quite different, reopening of assessment for all the three assessment years was invalid and quashed.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 1989-90 to 1991-92
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