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2020 (4) TMI 54 - HC - Income TaxReopening of assessment u/s 147- Objections preceding the Assessment Order not been considered by the respondent - HELD THAT:- This Court is of a considered opinion that reprieve needs to be granted to the petitioner in view of settled position of law vide decision of the Apex Court in GKN DRIVESHAFTS (INDIA) LTD. V. INCOME-TAX OFFICER [2002 (11) TMI 7 - SUPREME COURT] which states when a notice under section 148 is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notice. AO is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the AO is bound to dispose of the same by passing a speaking order. In the instant case, as the reasonshad been disclosed in the proceedings, the AO had to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment. This writ petition succeeds; a Writ of Certiorari issues quashing the impugned Assessment Order & the consequential Demand Notice; matter is remitted to the respondent for consideration afresh from the stage of treating the Objections filed by the petitioner.
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