Kripa Amar Alva Vs DCIT (ITAT Bangalore)
Calling an Objection “Invalid” Inside the Final Order Is Not a Speaking Order: Reassessments u/s 147/148 for Two AYs Quashed—Bangalore ITAT
Summary: The Bangalore ITAT quashed reassessments for AYs 2010-11 & 2011-12 because the AO failed to dispose of the assessee’s objections to reopening through a separate speaking order before completing assessment. Following its decision in Nisha Dudheria & the binding Karnataka High Court ruling in Hewlett Packard Financial Services (India) Pvt. Ltd., the Tribunal held that merely rejecting the objections through observations incorporated in the final assessment order did not satisfy the mandatory procedure laid down in GKN Driveshafts (India) Ltd.
Notice u/s 148 & Belated Return
For AY 2010-11, the AO issued notice u/s 148 on 27.03.2014, requiring the assessee to furnish her return within 30 days, on or before 27.04.2014.
The assessee did not file the return within that period. It was eventually filed on 14.01.2015, after a considerable delay. The AO thereafter issued notice u/s 143(2) on 16.02.2015.
The recorded reasons for reopening were supplied through a communication dated 27.02.2015. After examining them, the assessee submitted a letter dated 02.03.2015, expressly stating that the reasons recorded u/s 148 were not in accordance with the Income-tax Act & were therefore invalid.
