INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - AO did not dispose off assessee's objection as to reasons recorded under section 148 -

Assessee in response to notice under section 148, filed return of income, reasons for reopening were requested to be supplied to him which were duly supplied by AO and thereafter, assessee filed his objections on 24-8-2017 to the said reasons giving detail justification of source of cash deposits in his bank account being the subject-matter of reopening on the same date, the notice under section 143(2) was issued and matter was fixed for hearing on 12-9-2017. Therefore, considering submissions of assessee. AO completed assessment under section 143(3) read with section 147 vide Order, dated 22-12-2017. Assessee's case was that assessee had raised an objection regarding reasons recorded by AO for initiation of reassessment proceedings through its submissions dated 24-8-2017, however, without disposing of said objection and passing speaking order, AO made addition and passed impugned order which was an illegality. Held: Order passed under section 147 read with section 143(3) without disposing off objections raised by assessee against reasons recorded by AO under section 148 was quashed as invalid.

Supported by:GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11 to 2012-13

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