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2005 (2) TMI 461 - ITAT HYDERABAD-BValidity of notice issued u/s 148 - reopening of the assessment - mere change of opinion - HELD THAT:- We may state that in the case of GKN Driveshafts (India) Ltd. vs. ITO & Ors.2002 (11) TMI 7 - SUPREME COURT], it has been held that when a notice u/s 148 of the Act is issued, the proper course of action for the notice is to file the return and if he desires to give (sic-see) the reasons for issuing the notices, that the AO is bound to furnish reasons within a reasonable time, that on receipt of reasons, the noticee is entitled to file objections to issuance of notice and the assessee is bound to file objections and the AO is bound to dispose of the same by passing a speaking order. Thus, we consider that the additional grounds of appeal filed by the assessee having been admitted deserve to be allowed too. On this score itself, we declare, the facts and circumstances being in favour of the assessee, the initiation of proceedings u/s 148 of the Act and reopening u/s 147 of the Act are invalid, the reasons for reopening of the assessment specifically requested for by the assessee having been not given by the Department. Such reasons alone would form the basis for validity of the assessment but the assessee has been denied the opportunity to argue against validity of such reopening of assessment. Hence, the reopening having been declared as bad in law, there is no necessity for us to go into the merits of the case which has become infructuous. In the result, the appeal of the assessee is allowed in limine.
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