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2019 (12) TMI 1498 - ITAT DELHIReopening of assessment u/s 147 - non supply of reasons of reopening to assessee - HELD THAT:- Reasons have to be recorded before assumption of Jurisdiction u/s 147 i.e. before issue of notice u/s 148 - Any developments which take place after assumption of jurisdiction u/s 147 r.w.s.148 has no relevance for deciding whether the AO had reason to believe, before assumption of jurisdiction u/s 147 of I.T.Act ( i.e. before issue of notice u/s 148 that income had escaped assessment. When such reasons are not made available by Revenue either to the assessee or to the appellate authorities we have to conclude that the onus has not been discharged by Revenue to justify assumption of jurisdiction u/s 147 through issue of notice under section 148 of Income Tax Act. When the assumption of jurisdiction u/s 147 read with section 148 of I.T.Act lacks validityt he resultant assessment order lacks legitimacy. On this ground alone, the aforesaid assessment order dated 12.12.2008 deserves to be annulled. We further note that the Assessing Officer has not furnished reasons for issue of notice u/s 148 to the assessee in spite of order of Hon’ble Supreme Court in the case GKN Driveshafts (India) Ltd [2002 (11) TMI 7 - SUPREME COURT] whereby the Assessing Officer is bound to provide reasons recorded by him for issue of notice u/s 148 of I.T.Act to the assessee once the assessee has filed return in response to the notice issued u/s 148 of Income Tax Act. As assumption of jurisdiction by the AO u/s 147 of I.T.Act read with section 148 of I.T.Act is based on inquiries conducted without the authority of law. We are of the firm view that assumption of jurisdiction u/s 147 r.w.s. 148 of I.T.Act on the basis of inquiries conducted without the authority of law lacks legitimacy. Assumption of jurisdiction must be held to be unauthorized, when the inquiries made for assuming the jurisdiction were unauthorized in law; and the assessment order passed in pursuance of unauthorized assumption of jurisdiction u/s 147 r.w.s. 148 of I.T. Act, also lacks legitimacy. - Decided in favour of assessee.
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