|The Tax Publishers2020 TaxPub(DT) 5608 (Mum-Trib)
INCOME TAX ACT, 1961
Section 148 Section 147
Finalization of re-assessment by AO without having first disposed of objections of assessee, was invalid.
Reassessment - Validity - AO not having disposed of objections raised by assessee against reasons recorded under section 148 -
Assessee challenged validity of reassessment framed on the ground of AO not having disposed of objections raised by assessee against reasons recorded under section 148 for reopening of assessment. AO's case was that he disposed of objections raised by assessee in the assessment order while completing re-assessment. Held: AO was to pass a separate speaking order disposing of preliminary objections raised by assessee against reopening the assessment. As AO failed to do so, re-assessment order passed under section 147 was quashed as invalid though AO disposed of objections raised by assessee in the assessment order while completing re-assessment.
Followed:Fomento Resorts & Hotels Ltd. v. Asstt. CIT Tax Appeal No. 63 of 2007, dated 30-8-2019 : 2019 TaxPub(DT) 6719 (Bom-HC). Relied:GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 734 (SC), Maharashtra State Power Generation Co. Ltd. v. Addl. CIT [ITA No. 2043/Mum/2011, dated 31-7-2019] and KSS Petron (P) Ltd. v. Asstt. CIT [ITA No. 224 of 2014, dated 3-10-2016].
FAVOUR : In assessee's favour.
A.Y. : 2011-12.
IN THE ITAT, MUMBAI BENCH
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