Prasanth Sunil Kumar Bohra Vs ITO (ITAT Mumbai)
ITAT Mumbai held that reopening of assessment under section 147 of the Income Tax Act is liable to be quashed in as much as objections raised by the assessee were not disposed of by AO by passing a speaking order as per the guidelines issued by the Hon’ble Supreme Court in case of KGN Driveshafts.
Facts- Post scrutiny assessment, AO reopened the case on the ground that assessee had not truly and correctly disclosed the quantum of transactions done during the year in the return of income. The AO had reasoned to believe that income chargeable to tax escaped assessment. The assessee had entered into transactions of Rs.2,09,25,755/- with Shripal Vora. The AO observed that genuineness of the said transaction is not conclusively proved; hence, the case was fit for re-opening u/s 147 of the Act. Subsequently, AO did not accept the reply of the assessee and added Rs.2,09,25,755/- u/s 69 of the Act.
Conclusion- It is clear from the subsequence of events narrated above that the AO has passed the order u/s 147 r.w.s. 144 without disposing of the objection raised by the assessee against the re-opening of the assessment. As stated earlier, the appellant had raised objection on 15.01.2022 against the re-opening but the same was not disposed of by the AO by passing a speaking order as per the guidelines issued by the Hon’ble Supreme Court in case of KGN Driveshafts.
