Case Law Details
ITO Vs ICFAI University (ITAT Delhi)
There is no dispute that the Assessing Officer has not dismissed the objections of the assesssee by any speaking order. This is clearly in violation of the ratio laid down by the Hon’ble Supreme Court in the case of M/s. GKN Drivesharfts (supra) wherein the Hon’ble Supreme Court clearly laid down that where the notice u/s. 148 was issued and the assessee filed objections. The Assessing Officer was bound to dispose of the same by a speaking order.
Assessing Officer who is bound to decide the preliminary objections to issuance of the reassessment notice by passing a speaking order and, therefore, if such order on the preliminary objections is still against the assessee, the assessee will get an opportunity to challenge the same by filing a writ petition so that he does not have to wait till completion of the reassessment proceedings which would have entailed the liability to pay tax and interest on reassessment and also to go through the gamut of appeal, the second appeal before Income-tax Appellate Tribunal and then reference/tax appeal to the High Court.
In view of the above it is held that failure to address the objections of the assessee by passing a speaking order has vitiated the proceedings and rendered it liable to be quashed since the reasons for re-opening the case u/s. 148 were based on proper reasoning and adequate facts.
FULL TEXT OF THE ITAT JUDGEMENT
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