Vodafone Idea Limited Vs DCIT (ITAT Delhi)
The Delhi Income Tax Appellate Tribunal (ITAT) decided two appeals filed by the assessee for Assessment Year 2005-06. The Tribunal noted that one appeal (ITA No. 7731/Del/2025) was merely a duplicate filing and dismissed it accordingly. The remaining appeal (ITA No. 7730/Del/2025) primarily challenged the validity of the reassessment proceedings.
The assessee argued that the reassessment order dated 28.03.2013 was legally unsustainable because the Assessing Officer (AO) failed to dispose of its objections to the reopening of assessment before completing the reassessment. The assessee relied on the Supreme Court’s decision in GKN Driveshafts (India) Ltd. v. ITO, which requires the AO to pass a separate speaking order disposing of objections before proceeding with reassessment.
The Revenue supported the reassessment by referring to the findings of the Commissioner of Income Tax (Appeals), contending that the AO had adequately addressed the assessee’s objections. However, the Tribunal found no merit in this contention. It observed that the AO had not passed a separate order disposing of the objections before completing the reassessment.
The Tribunal relied extensively on its earlier decision in ITO vs. Hardeep Singh (ITA No. 1152/Del/2020, dated 27.12.2024), which dealt with the same legal issue. In that case, the Tribunal had examined whether a communication issued by the AO constituted disposal of objections. It held that merely informing the assessee about the basis of reopening and seeking explanations did not amount to a speaking order disposing of objections. Consequently, the reassessment was held to be vitiated.
