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2019 (5) TMI 775 - ITAT DELHIReopening of assessment - non recording of reasons by AO - assessee not given copy of reasons recorded for issuance of notice u/s 148 - non independent application of mind by AO - borrowed satisfaction - HELD THAT:- Reasons have not been recorded by the AO rather based the assessment order on the information received from DCIT, CC 2(2), Mumbai along with assessment order of M/s. Avance Technologies Limited passed u/s 153C of the Act, so the question of supplying reasons recorded to the assessee does not arise. When assessee had made a request for supply of the reasons recorded and the said request had not been adhered to and the AO proceeded to pass the assessment order even without providing an opportunity to cross examine the Director of M/s. Avance Technologies Limited whose statements have been relied upon to prove the fact that M/s. Avance Technologies Limited, a accommodation entry provider has provided accommodation entry of ₹ 25,00,000/- to the assessee. So, the very initiation of assessment proceedings u/s 147/148 of the Act were void and non est at the very outset because the AO has not recorded any reasons after applying his mind nor supplied the copy thereof to the assessee and as such, in these circumstances, question of filing / disposing off the objections by assessee/AO does not arise. As decided in Pr.CIT-16 vs. Jagat Talkies Distributors [2017 (9) TMI 192 - DELHI HIGH COURT] wherein GKN Driveshaft (India) Ltd. [2002 (11) TMI 7 - SUPREME COURT] discussed held that when the assessee has not been given copy of reasons recorded for issuance of notice u/s 148 by the AO, entire assessment proceedings and resultant assessment order passed u/s 143(3)/148 was to be quashed. - Decided in favour of assessee.
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