Case Law Details
Shri Vijaykumar L. Jain Vs ITO (ITAT Pune)
The issue under consideration is whether Non-furnishing of reasons recorded for reopening of assessment made the entire assessment u/s 147 invalid in law?
ITAT states that, in the present case it is clear that despite the request by the assessee, the Assessing Officer has completed the assessment without furnishing the reasons recorded for reopening of assessment. Furnishing the reasons recorded for reopening of the assessment is mandatory condition as held by the Hon’ble Supreme Court in the case of GKN Driveshafts (India) Ltd. Vs. ITO (supra) wherein the Hon’ble Supreme Court has laid down the principle that recorded reasons must be furnished to the assessee when the assessee seeks the reasons. It has further held that the recording of reasons and furnishing of the same has to be strictly complied with as it is a jurisdictional issue and in the absence of reasons being furnished when sought for would make an order passed on reassessment bad in law. Revenue has not placed any contrary binding decision in its support. Considering the totality of the aforesaid facts and relying on the decisions cited herein above, ITAT hold the reassessment order passed by the AO to be bad in law and thus set it aside.
Hence, the appeal of the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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