Case Law Details
Sh. Chand Singh Vs DCIT (ITAT Delhi)
n the present case it is an undisputed fact that there was a failure by the AO to comply with the mandatory requirement of disposing of the objections raised by the assessee to the reopening of assessment in terms of the law laid down by the Hon’ble Supreme Court in the case of GKN Driveshafts India Ltd. (supra). We further find that Hon’ble Bombay High Court in the case of CIT vs. Trend Electronics (2015) 379 ITR 456 (Bom), after considering the decision of Hon’ble Bombay High Court in the case of CIT vs. Videsh Sanchar Nigam Ltd. (2012) 340 ITR 66 (Bom) has held that recorded reasons as laid down by the Apex Court must be furnished to the assessee when sought for so as to enable the assessee to object to the same before the AO. It has further held that the recording of reasons and furnishing of the same has to be strictly complied with as it is a jurisdictional issue and in the absence of reasons being furnished when sought for would make an order passed on reassessment bad in law. We also find that the Hon’ble Mad High Court in the case of Jayanthi Natarajan (supra) has held that when the procedure required to be followed has not been adhered to, the entire reassessment proceedings were vitiated. We, therefore, relying on the aforesaid decision in the case of Jayanthi Natarajan (supra) and Trend Electronics (supra) hold that since the procedure required to be followed has not been followed the entire assessment proceedings are vitiated and therefore we hold the assessment order passed by the AO to be bad in law and thus set it aside. Since we have set aside the reassessment order the grounds raised on merits require no adjudication as they have been rendered academic. Thus the Appeal of the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
Both the appeals filed by the assessee are directed against the order of the Commissioner of Income Tax (Appeals)-I, Gurgaon dated 14.06.2016 for Assessment Years 2010-11 & 2011-12 respectively.
2. The relevant facts as culled from the material on records are as under:
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