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2023 (4) TMI 953 - BOMBAY HIGH COURTReopening of assessment u/s 147 - Non furnishing the reasons for reopening to the assessee - Petitioner was informed that a return of income tax ought to be filed first whereafter only the reasons for reopening would be furnished - HELD THAT:- As per the ratio of the judgment of the Apex Court in GKN Driveshafts (India) Ltd. [2002 (11) TMI 7 - SUPREME COURT] after the issuance of notice under Section 148 of the Act, the noticee is required to file a return if he so desires and to seek reasons for issuing the notice under Section 148 of the Act. The A.O. is then bound to furnish the reasons within a reasonable period of time to which the noticee is entitled to file objections. There have been a plethora of judgments reiterating the importance of furnishing the reasons for reopening to the assessee so that the assessees in appropriate cases bring to the notice of the A.O. facts which could persuade the A.O. to drop the reassessment proceedings on the ground that the reopening was not warranted based upon issues of facts or of law of which the A.O. was either ignorant of or had entertained misconceptions regarding the same. It can be seen from the facts narrated hereinabove that after receipt of notice under Section 148 of the Act, by the Petitioner, there was some delay in filing the return. Petitioner had consistently requested the A.O. to furnish the reasons for reopening, which admittedly were never provided to the Petitioner. In the present case therefore failure on the part of the A.O. to furnish reasons recorded for purposes of reopening the assessment does make the order of assessment unsustainable in law. We allow the present petition. The order of assessment and notice of demand as also the notice under Section 148 are set aside.
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