2018 (2) TMI 1900 - AT - Income Tax

Reopening of assessment u/s 147 - non disposing objections of the assessee against issuance of notice for re-opening assessment - addition of Short Term Capital Gain - share of assessee and the other co-owner in the impugned plot was 1/3rd each - HELD THAT:- AO is duty bound to decide the objections of the assessee against initiation of reassessment proceedings by passing a separate speaking order. Thereafter, AO shall give four weeks time to the assessee from the date of service of the said order before proceeding with the finalization of assessment. In the case of KSS Petron Private Ltd. Vs. ACIT [2016 (10) TMI 1112 - BOMBAY HIGH COURT] has set aside reassessment proceedings were the Assessing Officer has not followed the proper procedure as mandated for disposing of the objections of the assessee on reopening.

It is apparent from record that the AO committed error in not following the proper procedure for deciding the objections of assessee against re-opening of assessment. AO is a quasi judicial authority and is therefore, duty bound to follow the law laid down by the Hon’ble Supreme Court of India, the Hon’ble High Courts and the Appellate Authorities. The assessment orders have been passed by the Assessing Officer in both the cases without following the principles as set out by the Hon’ble Apex Court and Hon’ble Jurisdictional High Court. - Appeals of Revenue are dismissed.