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2018 (6) TMI 496 - AT - Income TaxReopening of assessment - assessee’s objections to the reopening of assessment - Held that:- Consideration of the assessee’s objections to the reopening of assessment is not a mechanical ritual, but it is a quasi judicial function. It has been mandated that the order disposing of the objections should deal with each objection, giving proper reasons for the conclusion and no attempt should be made to improve or add to the reasons, as recorded and disclosed. Though the reasons recorded by the AO for belief of escapement of income contain reference to material forming the basis thereof, such material, despite written request by the assessee to the AO in this regard, was never supplied by the AO to the assessee. This is in direct contravention of the principle of natural justice, as reiterated in “Sabh Infrastructure Limited” (2017 (9) TMI 1589 - DELHI HIGH COURT). In the present case, the alleged material was only supplied to the assessee in the remand proceedings, where too, the objections of the assessee were not met. CIT(A) also did not deal with these objections of the AO. The reasons recorded by the AO are found to be not in accordance with law. Accordingly, they are cancelled. Too, in view of “Sabh Infrastructure Limited” (supra), none of the other decisions cited by the Department are of any aid to it. Consequently, the reassessment proceedings, culminating in the order under appeal, are also not sustainable in the eye of law and they too are cancelled. Nothing further survives for adjudication. Appeal is allowed.
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