Deepak Extrusions (P.) Ltd. v. Dy. CIT

INCOME TAX ACT, 1961

--Reassessment--Validity of orderOrder passed without disposing off assessee's objections----Before passing re-assessment order it is mandatory on part of AO to dispose of assessee's objections.--AO issued notice under section 148 for reopening of assessment and thereafter as desired by assessee, AO supplied reasons for reopening but before disposal of objections raised by assessee passed re-assessment order under section 147 read with section 143(3). Held: In present case, AO did not dispose of the objections prior to proceeding with the assessment further and proceeded to pass the order for assessment. Under the circumstances, it could be said that the mandatory procedure of disposal of the objection by AO before proceeding with the assessment had not been followed and exercise of power could be said as not only vitiated, but the order of assessment could not be sustained. Impugned order passed by single judge as well as assessment order were set aside and assessee's appeal was allowed.

Income Tax Act, 1961 Sections 147 & 148

REFERRED : G.K.N. Drive shafts (India) Ltd. v. ITO (2003) 259 ITR 19, Vardhman Metals v. ITO [Writ Petition No. 219 of 2015 (T-IT), dt. 26-10-2016]

FAVOUR : In assessee's favour.