Income Tax Act, 1961

Section 147

Reassessment - Validity - AO not disposed of objections raised by assessee -

AO based on information emanated from investigation wing reopened assessment and made addition. Assessee challenged this on the ground of AO not having disposed of objections raised by assessee to the reasons recorded for re-opening. Held: It was absolutely clear that objections raised by assessee to reasons recorded for re-opening and the re-opening itself were not disposed of by AO. Thus completion of assessment without disposal of these objections, made assessment bad in law. Even otherwise, reassessment was bad in law for want of recording proper sanction under section 151 and AO not having applied his mind to information received from the Investigation Wing re-opened being based on borrowed satisfaction.

Relied:Rabo India Finance Ltd. v. DCIT (2012) 346 ITR 528 (Bombay) : 2012 TaxPub(DT) 2573 (Bom-HC) and in the case of Vishwanath Engineers v. ACIT (2013) 352 ITR 549 (Gujarat) : 2012 TaxPub(DT) 3284 (Guj-HC). ) Hon'ble jurisdictional Tribunal of Kolkata in ITA No. 660/Kol/2011 for assessment year 2002-03 in the case of DCIT v. Great Wall Marketing (P) Ltd. ITO v. Lakhmani Merwal Das (1976) 103 ITR 437 (SC) : 1976 TaxPub(DT) 0742 (SC). PCIT v. Meenakshi Overseas (P) Ltd. (Del HC). Sarthak Securities Co. (P) Ltd. v. ITO (2010) 329 ITR 110 (Del) : 2010 TaxPub(DT) 2311 (Del-HC). United Electrical Co. (P) Ltd. v. CIT (2002) 178 CTR 192 (Del) : 2002 TaxPub(DT) 1670 (Del-HC).

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