Surekha Sanjeev Thakur Vs ITO (ITAT Pune)
Pune ITAT Restores Reassessment as Recorded Reasons Were Not Furnished to Assessee
The assessee had not filed her original return for AY 2012-13. Following the issue of notice under section 148, she filed a return declaring total income of ₹1,89,800. The AO thereafter completed the reassessment under section 147 read with section 143(3).
The ITAT observed that the assessment order neither mentioned the date of the section 148 notice nor disclosed the reasons recorded for reopening the assessment. The assessee contended that the recorded reasons had never been supplied to her, and the Departmental Representative could not rebut or explain this position.
Relying on the Supreme Court ruling in GKN Driveshafts (India) Ltd. v. ITO, the Tribunal held that the AO is mandatorily required to furnish the recorded reasons within a reasonable time, permit the assessee to file objections and dispose of those objections through a speaking order before proceeding with the reassessment.
The ITAT also referred to the Bombay High Court’s guidelines in Tata Capital Financial Services Ltd. v. ACIT regarding communication of the complete reasons, supporting material, approval of the superior authority, disposal of objections and grant of personal hearing.
Since the recorded reasons had not been furnished and the assessee had also sought admission of additional evidence, the Tribunal set aside the assessment and restored the matter to the AO for de novo adjudication. The AO was directed to supply the recorded reasons and provide a proper opportunity of hearing.
