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2017 (6) TMI 956 - GUJARAT HIGH COURTReopening of assessment - objections of the petitioner against reopening - non application of individual mind by AO - Held that:- The very action of the Assessing Officer to deal with the objections of the petitioner in the final order of reassessment, runs contrary to the judgment of the Supreme Court in case of GKN Driveshafts (India) Ltd. v. ITO and Ors.[2002 (11) TMI 7 - SUPREME Court] wherein held hen a notice under section 148 of the Income-tax Act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. Assessing Officer was acting under the compulsion of the audit party. As noted, the audit party raised its objections on 16.01.2012. While issuing notice for reopening on 26.03.2012, the Assessing Officer had cited three very reasons. Subsequently on 24.05.2012, he sent a detailed note to the audit party, justifying why the audit objections should be dropped. It is true that in the present case such resistance from the Assessing Officer came after the notice for reopening. Nevertheless, if we see entire sequence, it becomes clear that the Assessing Officer was clearly acting under the dictates of the audit party. Even after issuing the notice, he still maintained an opinion that no income chargeable to tax had escaped assessment. If that be so, he ought to have dropped the assessment proceedings, at least at that stage when the petitioner raised the objections which even without such objections, the Assessing Officer was convinced, were valid. - Decided in favour of assessee.
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