TMI Blog2011 (2) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... e to challenge the validity of reassessment notice before the Commissioner of Income-tax (Appeals) and in fact, the assessee did so for availing of that opportunity The assessee could have been provided with the "reasons to believe" recorded by the Assessing Officer to expect the assessee to make his submission before the Commissioner of Income-tax (Appeals) predicated on the said "reasons to believe" - On the supply of these "reasons to believe", it would be open to the assessee to make submissions before the Commissioner of Income-tax (Appeals) based on those reasons, challenging the validity of reassessment proceedings and the Commissioner of Income-tax (Appeals) shall decide this issue on the merits after hearing both parties - Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts M/s. Sam Aviation (P) Ltd. was carrying out fraudulent exports. On the basis of this information, a search was conducted by the DRI at the office of M/s. Sam Aviation (P.) Ltd. During the course of search proceeding, some incriminating material, according to the DRI, was found and seized which divulged that the assessee was involved in fraudulent export and money laundering and was availing of undue export benefits during the period 1993 to 1996. After reopening the assessment, the show-cause notice was issued as to why deduction received under section 80HHC of the Act be not withdrawn, etc. Thereafter, the proceedings were held and the Assessing Officer passed orders of reassessment which was framed under section 144 of the Act. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of "reasons to believe", he could not demand the same and raise objections thereto, the Tribunal has remitted the case back to the Assessing Officer in both years with direction to the Assessing Officer to provide a copy of "reasons to believe" to the assessee and give him opportunity to raise objections and thereafter pass speaking order on those objections and frame de novo assessment in both assessment years, if objections are rejected. This course of action, to our mind, is totally unsustainable. In the first place, we may record that when notice under section 148 of the Act was issued for reassessment proceedings, no doubt, the Assessing Officer is required to record reasons which led him to believe that there was escaped income. Law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se objections to "reasons to believe" recorded by the Assessing Officer. Reassessment order passed by the Assessing Officer in both assessment years is even upheld by the Commissioner of Income-tax (Appeals). It was the assessee's own creation that it did not ask for the reasons or raise objection thereto. Merely because the assessee was oblivious of such a right would not mean that the Tribunal should have granted this right to the assessee, that too, at the stage when the matter was before the Tribunal and travelled much beyond the Assessing Officer's jurisdiction. It is trite that what cannot be done directly, it is not allowed indirectly as well. This novel and ingenious method adopted by the Tribunal in setting aside the reassessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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