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2015 (11) TMI 1769 - AT - Income TaxReopening of assessment - capital gains arising out of the joint development agreement as assessee entered with Vaswani Estates Developers P. Ltd. - non-furnishing of reasons to assessee for reopning of assessment - Held that:- AO had not complied with the law laid down by the Hon’ble Apex Court in the case of GKN Driveshafts (India) Ltd (2002 (11) TMI 7 - SUPREME COURT). AO had not given copy of the reasons for which notice u/s.148 of the Act was issued. In our opinion awareness of the assessee as to the reason why notice u/s.148 of the Act was issued may not be sufficient to satisfy the requirement in this regard. No doubt Ld. DR has relied on a judgment of Hon’ble Madras High Court in the case of CIT v. C. Palaniappan [2011 (3) TMI 589 - MADRAS HIGH COURT] where it was held that non-furnishing of reasons was only a supervening illegality and would not render the proceedings void by itself. However, we find that Hon’ble Delhi High Court in the case of Samcor Glass Ltd [2015 (12) TMI 773 - DELHI HIGH COURT] and Trend Electronics [2015 (9) TMI 1119 - BOMBAY HIGH COURT] had held that jurisdictional issues should be strictly complied with by the authorities concerned and no question of knowledge being attributed on the basis of implication can arise. Once a jurisdictional High Court decision is there on a particular legal issue, this Tribunal being an inferior forum to jurisdictional High Court, is bound to follow the said judgment. Accordingly we are constrained to quash the assessment done on the assessee for the impugned assessment year. Appeal of the assessee having been allowed on legal ground itself, other grounds relating to the merits of the issue are not dealt with. Assessee’s appeal is allowed.
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