TMI Blog2006 (9) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 132(1) of the Act was carried out and during which gold/silver ornaments, documents, bank accounts, bill books and books of account found were seized. In response to notice issued under s. 158BC dt. 29th Oct., 1998, the assessee filed return in the prescribed Form No. 2B for the block period and declared undisclosed income of Rs. 21,60,763 and also paid tax @ 60 per cent as provided under s. 113 of the Act. The returned income covered excess cash, excess silver, excess gold and deposits in the bank accounts, which were not disclosed to the Department in the regular returns, based on books of account. An order under s. 158BC(c) was passed on 8th March, 2001. and against which appeal was filed before the learned CIT(A) who vide order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion that the AO has failed to decide the objection against the reasons given for reassessment, which is utter failure of the diktat of the Hon'ble jurisdictional High Court given in this case of Gehna vs. Union of India Ors. (2003) 184 CTR (Raj) 446 : (2004) 267 ITR 782 (Raj); and that of the Hon'ble apex Court given in the case of GKN Driveshafts (India) Ltd. vs. ITO (2003) 179 CTR (SC) 11 : (2003) 259 ITR 19 (SC), according to which the AO is duty bound first of all to dispose of the objections raised by the assessee, by passing a speaking order. The learned CIT(A), also considered and decided the issues on merits, besides quashing the notice issued under s. 148 of the Act. 5. This is the appeal of the Revenue against the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decide by passing a speaking order. The AQ is bound to decide the objections raised against the reasons taken for reassessment by way of a reasoned order before proceeding to frame an assessments under s. 147 of the Act. Obviously, this was not done by the AO. His order suffers from this inherent defect and his action is in violation of the dictums of the Hon'ble apex Court and also of the Hon'ble jurisdictional High Court, and hence the learned CIT(A) has correctly quashed the notice under s. 148 of the Act and for that matter the assessment order itself. 9. Moreover, the learned CIT(A) has deleted all the additions made on the grounds of reasons taken for reopening, and this 'factum' is also in favour of the assessee, in view of variou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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