TMI Blog2012 (12) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... o the point where the defect occurred so as to cure of such defect, and continue with the proceedings in accordance with law. Therefore order of AO set aside & matter remand back to AO - ITA No.780/Mds./2012 and SP No.61/Mds./2012 - - - Dated:- 19-7-2012 - SHRI ABRAHAM P.GEORGE AND SHRI VIKAS AWASTHY, JJ. Appellant by : Shri R.Lakshmi Ratan. C.A. Respondent by : Shri Vikramaditya, JCIT DR ORDER PER ABRAHAM P.GEORGE ACCOUNTANT MEMBER: In this appeal filed by the assessee, its grievance is that the CIT(A) sustained the reopening despite original assessment having been completed under section.143(3) of the Income Tax Act, 1961(in short the Act ) and that too, without giving the reasons sought by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets. As per Assessing Officer, business income was worked out by the assessee after considering such claim of loss on sale of fixed assets. When put on notice, assessee replied that assets worth Rs.1,05,90,483/- were transferred to one M/s. O S A Shipping P. ltd, assets worth Rs.1,36,817/- were transferred to one M/s.D.B. Madan Co., and assets worth Rs.45,09,187/- were transferred to certain other parties. However, as per Assessing Officer, no details were submitted by the assessee in this regard. He also noted that M/s.OSA Shipping P Ltd as well as M/s.D B. Madan Co were related concerns. Further, according to him, persons to whom assets worth Rs.45,09,187/- were transferred, were not known. Thus, he came to a conclusion that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sailing the reopening done for the impugned assessment year, submitted that assessee had in its computation statement clearly shown the claim of loss on sale of assets. Relying on paper book Volume II at page-7, Ld. A.R. submitted that assessee had separately considered loss on sale of assets based on books and claimed loss for the difference between sale consideration and WDV. Again according to him, depreciation statement for tax purposes appended by the assessee along with return placed at paper book Volume-II page-13 clearly showed that assets worth Rs.1,29,26,480/- were disposed of during the relevant previous Year. Ld. A.R. pointed out that Assessing Officer had during the original assessment proceedings, required the assessee to fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he records relating to impugned Assessment Year, and the reopening was based on his findings for a preceding year. 7. We have perused the orders of the authorities below and heard the rival contentions. Assessee in its return for impugned Assessment Year had worked out the depreciation for tax purposes as under:- Description WDV as on 1.4.00 Addition Deletion Total Depreciation WDV as on 31.3.01 Block A Building 67,335 - - 67,335 67,335 (10%) 60,601.50 Block B Plant Machinery Franking machine 170 - - 170 42.50(25%) 127.50 Pump set 11,145 - - 11,145 2,786.25( ) 8,358.75 Others 7,29,899 36,668 3,79,668 .. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee in his letter dated 09.08.07 clearly mentions that reasons for reopening was not given to it and that this was a pre-requisite for a reassessment. Assessing Officer in his letter dt.28.04.08 has stated asunder:- Sub: income tax assessment A.Y.01-02 your own-reopened under section 148-reasons for reopening reg. Ref: your letter dated 9.8.07 Please refer to the above. You are requested to comply with the requirements of the notice cited above. On your compliance the reasons will be intimated to you. Assessee had as early as 10.08.07 itself requested the Assessing Officer to treat the return already filed by it on 10.08.07 as one filed pursuant to the notice under section 148 of the Act.. D.R. has not disputed that reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reopening despite request. Hon ble Apex Court in the case of GKN Driveshafts (India) Ltd. Vs. ITO in 259 ITR 19 (SC) clearly held that when a notice under section.148 was issued and assessee after filing return had sought reasons for issue of notice, Assessing Officer was bound to furnish reasons within a reasonable time. Lordships had noted that when objections were filed by the assessee, Assessing Officer was bound to dispose of such objections by passing a speaking order. In the case before the Apex Court, reasons were disclosed by the A.O., but the objections filed by assessee were not disposed of. None the less, it is clear that the A.O. has to provide the assessee with the reason for reopening, if it was sought and dispose of such obj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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