2017 (5) TMI 1653 - AT - Income Tax

Reopening of assessment - non supply of reasons to believe - Held that - In case the assessee demands the reasons recorded for reopening of assessment the Assessing Officer is duty bound to supply the reasons and then decide the objections if any filed by the assessee against the Notice issued under Section 148 prior to the framing of reassessment. Thus in the facts and circumstances of the case when this issue has not been raised and considered by the authorities below we remit this issue to the record of the CIT (Appeals) for adjudication as per law. Since the issue of validity of the reopening has been remitted to the record of the CIT (Appeals) therefore the other grounds raised on merit are also remitted to the record of the CIT (Appeals) for consideration and adjudication on merit. - Decided in favour of assessee for statistical purpose.

Summary

Issues Involved:
Validity of reassessment and communication of reasons for reopening of assessment.

Analysis:
1. Validity of reassessment: The appellant challenged the validity of reassessment in the present appeal, arguing that the assessment framed by the Assessing Officer without supplying the reasons recorded for reopening and deciding the objections separately is not sustainable in law. The appellant contended that despite a specific request made, the reasons for reopening were not communicated. The Tribunal noted that the order of the Assessing Officer and the CIT (Appeals) did not address this issue. It emphasized that if an assessee demands the reasons for reopening, the Assessing Officer is obligated to provide them before proceeding with reassessment. As this issue was not raised or considered by the lower authorities, the Tribunal remitted it to the record of the CIT (Appeals) for adjudication in accordance with the law.

2. Communication of reasons for reopening: The appellant claimed to have requested the reasons recorded for reopening of the assessment via a letter dated 22.2.2012. An affidavit submitted by the appellant supported this claim. The Departmental Representative objected to the additional ground raised by the appellant, arguing that since the issue was not raised before the lower authorities, it cannot be accepted that the reasons were not supplied. The Tribunal considered the submissions and the material on record, emphasizing the legal obligation on the Assessing Officer to provide reasons upon request. Given the lack of discussion on this matter in previous orders, the Tribunal remitted this issue to the CIT (Appeals) for a proper determination.

3. Decision: The Tribunal allowed the appeal of the assessee for statistical purposes, remitting the issue of validity of reassessment and other grounds raised on merit to the record of the CIT (Appeals) for further consideration and adjudication. The decision was pronounced in the open court on 5th May 2017 by Shri Vijay Pal Rao, J.M.