Case Law Details
Admach Auto Limited Vs DCIT (ITAT Delhi)
Disposal Of Objection To Reasons In Assessment Order Itself Without Separate Speaking Order Makes Entire Reassessment Invalid
We have also gone through the objections dated 27.12.2016 filed by the assessee before the AO in which the assessee has specifically objected the initiation of proceedings u/s. 148 of the Act which is without jurisdiction, time barred and bad in law. We have also perused the assessment order and we find that the AO has disposed off the objections in the assessment order dated 28.11.2016 without passing a separate order which is the contrary to law an deserve to be cancelled on this count, in view of the decision of the Hon’ble Apex Court in the case of GKN Driveshaft 259 ITR 19, which has been followed by various Benches of the ITAT, Delhi. The copy of one of the order of the ITAT, Delhi is attached in the paper book at page no. 19-44 which was passed in ITA No. 7372/Del/2019 (AY 2011-12) & Ors. in the case of Smt. Meena Gupta vs. ITO, Faridabad & Ors.
After going through the aforesaid order of the ITAT, Delhi Bench, we are of the view that there is force in the arguments advanced by the Ld. Counsel for the assessee on the issue of disposal of objections in the assessment order in not passing a separate order for disposing off the objections of the assessee, which is clear violation of the law laid down by the Hon’ble Apex Court in the case of GKN Driveshaft 259 ITR 19. Secondly, in the reasons, the AO has recorded that assessee has obtained the accommodation entry of Rs. 60 lacs in the name of 6 dummy / paper companies during the year under consideration, but finally made the addition of Rs. 50 lacs in the assessment order which also shows that AO has not applied his mind before recording the reasons in issuing the notice u/s. 148 of the Act. Therefore, the addition in dispute deserve to be cancelled. Keeping in view of the facts and circumstances of the case and respectfully following the precedent as aforesaid, we set aside the orders of the authorities below and quash the reopening of the assessment and addition in dispute stand deleted.
FULL TEXT OF THE ITAT JUDGEMENT
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