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2017 (3) TMI 257 - AT - Income TaxValidity of re-assessment proceedings - failure on the part of the A.O. to provide the reasons recorded for re-opening - Held that:- In the present case on hand, on perusal of the facts available on record, we find that the A.O. has formed an opinion merely based on the return of income and CBDT instructions, but not based on any tangible material which came to his knowledge subsequent to the completion of original assessment completed u/s 143(1) & 143(3) of the Act. Though there is no question of change of opinion in the cases where the assessment has been completed u/s 143(1) of the Act, but the facts remains that the A.O. should form reasons to believe which should be based on a new material which is came to his knowledge after completion of original assessment, but not based on same set of facts or return of income, which is already available with the A.O. at the time of completion of original assessment. Therefore, we are of the view that there is no sound basis for formation of reason to believe for re-opening of the assessment and hence, re-opening of assessment for the assessment year 2007-08, 2008-09 & 2009-10 is bad in law Question of non-furnishing the reasons for re-opening on already concluded assessment goes to very route of the matter and that the assessee is entitled to be furnished reasons for such re-opening and that if reasons are not furnished to the assessee, then the proceedings for the re-assessment cannot be taken any further, and re-opening of the assessment would be bad in law. A.O. had issued notice u/s 148 of the Act, on 30.6.2011 calling upon the assessee to furnish return of income. In response, the assessee has filed a letter on 18.7.2011 requesting for time of atleast 30 days for submitting the required details. Thereafter, the A.O. has issued a letter dated 25.7.2011 to furnish returns in response to notice issued u/s 148 of the Act. In response to letter, the assessee has filed a letter on 8.8.2011 and requested the A.O. to furnish reasons recorded for re-opening of the assessment for all the assessment years. Thereafter, the assessee has filed one more letter on 26.8.2011 and requested the A.O. to treat the return filed earlier u/s 139(1) of the Act, as the return filed in response to notice issued u/s 148 of the Act, for the assessment year 2007-08, but the assessee has filed returns in response to notice u/s 148 for the assessment year 2008-09 and 2009-10. Therefore, it is abundantly clear that the assessee has followed the procedure laid down by the Hon’ble Supreme Court, in the case of G.K.N. Drive Shaft’s India Ltd. (2002 (11) TMI 7 - SUPREME Court ). It is only the A.O. has not followed the procedure laid down by the Hon’ble Supreme Court. Therefore the re-opening of the assessment for the assessment years 2007-08, 2008-09 & 2009-10 is invalid - Decided in favour of assessee.
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