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2021 (10) TMI 797 - HC - Income TaxReopening of assessment u/s 147 - Non speaking order disposing of objections against reopening - information received from ADIT, Kolkata is about one M/s.Shubhshree Barter Pvt. Ltd. where high value transactions have been noticed as assessee as one of the beneficiary - main emphasis is about the order of disposing of the objections - According to the petitioner, it is not a speaking order - HELD THAT:- At Annexure-F what all the respondent Assessing Officer has opined that the case is reopened on the basis of tangible information and the conclusive evidence has been gathered that the assessee has escaped the income chargeable to tax during the Financial Year 2012-13 and the Assessment Year 2013-14. According to him, genuineness of the transaction will be found out only during the assessment or after the assessment is completed. There is a sufficient reason to believe that the income has escaped assessment and the reasons for reopening the assessment are correctly recorded. We could notice that this order lacks any reason, although there is no requirement for elaborate reasons, but a speaking order needs to really speak the mind of the officer exercising the quasi judicial function, this not being an empty formality even if he has a reason to believe that the income has escaped the assessment and, therefore, the objections are not to be accepted. It becomes the bounden duty to exercise this satisfaction in clear and specific words so as to also convey to the party concerned that in his exercise of discharge of his duty as a quasi judicial authority, he has arrived at a conclusion, so far as objections are reassessed. There may not be requirement of exhaustive elaborate essay, while discussing the reasons, but the same has to be clear in conclusion, satisfying the need of the same being a speaking order. Material, which has been placed before us is the inquiry report in the case of M/s. Shubhshree Barter Pvt. Ltd. to satisfy this Court as to why the scrutiny assessment for the Assessment Year 2013-14 has been necessitated. They are presently not to be entered into because of the absence of any reason and non-compliance of the directions in GKN Driveshafts (INDIA) Ltd. [2002 (11) TMI 7 - SUPREME COURT]. Disposal of this matter is needed as dealing with the objections to the reasons recorded is not a static formality to be undergone to rush to the forming of assessment. Even while accepting the requirements of a focus on substantive justice in the process, it is a vital step towards that and hence mandate in GKN Driveshafts (INDIA) Ltd. (supra) must not be undermined, nor can that be diluted. Therefore, on quashing the order of assessment and without quashing the notice, we deem it appropriate to direct the Assessing Officer to pass a speaking order taking into consideration the objections raised by the petitioner. It is not the length of the order, which is the reason of our remand, it is the cryptic manner of dealing without any semblance of reasons which necessitated such remand. Let the said task be completed at the earliest. We have ascertained from the learned counsel that there is nothing further that needs to be added to the written objections to the reasons recorded. Order passed by the Assessing Officer disposes of objections of the petitioner dated 27th July, 2021 and the order of assessment dated 28th September, 2021 are quashed and set aside. On the strength of the objections raised by the petitioner, the respondent shall decide these objections in accordance with law as discussed hereinabove within two weeks.
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