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2014 (7) TMI 346 - HC - Income TaxNotice for reopening of assessment u/s 148 of the Act – Speaking order - Held that:- The decision in GKN Driveshafts (India) Ltd. Versus Income-Tax Officer And Others [2002 (11) TMI 7 - SUPREME Court] followed - it is incumbent upon the assessing officer to controvert the plea against the reasons recorded to provide an opportunity at the threshold may have effect to terminate many proceedings at primary stage. The assessee is entitled to the reasons on which the proceedings of reopening or of reassessment are initiated - No assessee is required to undergo the cumbersome proceedings of process of reopening, unless the assumption of jurisdiction in respect of the same is based on valid legal base - the preliminary objections raised against the notice and also in relation to the reasons recorded must be considered and all objections raised by the assessee by speaking order needs to be disposed of - the AO instead continued with the reassessment proceedings by issuing notice u/s 142(1) and when his attention was drawn to the fact that objections have not been disposed of, he observed by communication dated 6.11.2006 that such objections would be disposed of at the time of framing the reassessment - CIT(Appeals) for the assessment year 2002-03 on the very issue recorded in the reasons of reopening and concluded in favour of the petitioner assessee on 9.5.2006 - For completion of reassessment u/s 147 in respect of the AY 1999- 2000, the last date was 31.12.2006. The stage of considering the objections and disposing of the same in wake of not only the averments made in the objections raised but also based on surrounding circumstances of facts and law was given a go by completely – revenue was needed to pass a speaking order, which not only is obligatory but that would have saved enormous time and resources as the appellate authority decided the very issue under reopening in favour of the assessee – thus, assessment made pursuant to the proceedings under section 148 set aside - matter remanded back – Decided in favour of assessee.
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