The Tax Publishers2021 TaxPub(DT) 0216 (Del-Trib)


Section 147

AO was not justified in framing reassessment as assessee was not given four weeks' time to seek legal remedy after rejection of objections to reopening of assessment.

Reassessment - Validity - Assessee not provided four weeks' time to seek legal remedy -

Assessee-individual was engaged in the business of cloth trading. Assessee's case was reopened under section 147 on 28-3-2016. On 4-7-2016, reasons for reopening of assessment were provided to assessee. On 13-7-2016, assessee filed objections to the reasons so recorded. The objections raised by assessee were disposed of by AO on 13-12-2016. However, AO framed assessment under section 147 read with section 143(3) on 30-12-2016. The bone of contention was as to whether AO had rightly framed the impugned order within 16 days of disposing of the objections of assessee. Held: Assessee immediately asked for copy of the reasons recorded for reopening of the assessment, thus, there was no delay on the part of assessee in asking for copy of the reasons recorded for reassessment proceedings. It was an admitted fact that reasons were supplied to assessee and assessee on the same day filed the objections to the reopening of the assessment. AO within 16 days after disposing of the objections of assessee passed the impugned re-assessment order. Thus, time of four weeks' had not been granted to assessee to take remedial action in the matter. Re-assessment order dt. 30-12-2016 framed under section 147/143(3) was bad in law and deserved to be quashed.

REFERRED : GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC), Pr. CIT v. Sagar Developers Tax Appeal No. 797/2015 etc., dt. 20/21-7-2016 : 2016 TaxPub(DT) 3617 (Guj-HC), Bharat Jayantilal Patel v. UOI & Ors. (2015) 378 ITR 596 (Bom-HC) : 2015 TaxPub(DT) 3214 (Bom-HC), Aroni Commercials Ltd. v. Dy. CIT & Anr. 2014 TaxPub(DT) 1649 (Bom-HC), Asian Paints Ltd. v. Dy. CIT (2009) 308 ITR 195 (Bom-HC) : 2009 TaxPub(DT) 640 (Bom-HC), Kamlesh Goel v. ITO ITA.No.5730/Del./2017, dt. 30-8-2018 : 2018 TaxPub(DT) 5887 (Del-Trib) and Meta Plast Engineering P. Ltd. v. ITO [ITA. No.5780/Del/2014, dt. 6-4-2018].

FAVOUR : In assessee's favour.

A.Y. : 2010-2011



'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : /