TMI Blog2016 (7) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... /2014, ITA No. 403/JP/2014, ITA No. 454/JP/2014, ITA No. 404/JP/2014, ITA No. 455/JP/2014, ITA No. 405/JP/2014, ITA No. 456/JP/2014, ITA No. 406/JP/2014 - - - Dated:- 8-6-2016 - SHRI T.R.MEENA, AM SHRI LALIET KUMAR, JM For The Assessee by : Shri Prakul Khurana (Adv), Shri Aditya Vijay (Adv) and Shri Dipesh Kaur Jani (CA) For The Revenue : Shri B.K. Gupta (CIT) ORDER PER LALIET KUMAR, J.M. These are the cross appeals filed by the assessee as well as revenue arise against the orders dated 18/03/2014 and 21/03/2014 of the learned C.I.T.(A), Kota for the A.Y. 2005-06 to 2009-10. The effective grounds of all the appeals are under:- Grounds of ITA No. 452/JP/2014 (Assessee s appeal)(A.Y.2005- 06) 1 Under the facts and the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), Kota has erred in not declaring the reassessment proceedings, initiated under section 147/148 of the Income Tax Act, 1961, as invalid/nullity and thereby not quashing the assessment order itself passed in consequence thereof. 2. Under the facts and the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), Kota has err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that ground rent, conversion charges, transfer fee etc. collected by the assessee also constituted the shares of State Government and Municipal Bodies and were never part of assessee s income; Grounds of ITA No. 405/JP/2014 (revenue s appeal) (A.Y. 2008- 09) On the facts and in the circumstances of the case, the ld CIT(A) has erred in:- (i) treating the rental income of ₹ 30.16 lakhs assessed under the head income from house property as Income from business ; (ii) allowing the expenses of ₹ 3662.54 lakhs by treating the same as revenue expenditure; (iii) allowing the deduction of ₹ 1617.59 lakhs by holding that ground rent, conversion charges, transfer fee etc. collected by the assessee also constituted the shares of State Government and Municipal Bodies and were never part of assessee s income; (iv) allowing expenses of ₹ 1111.08 lakhs out of total expenses claimed at ₹ 1567.79 lakhs under the head Other miscellaneous expenses and disallowed by the A.O. Grounds of ITA No. 406/JP/2014 (revenue s appeal) (A.Y. 2009- 10) On the facts and in the circumstances of the case, the ld CIT(A) has err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng income is not exigible to any taxable income nor thus required under the 1961 Act to file return of income. In the even such objections as to lack of jurisdiction of the Income Tax Officer are filed by the petitioner Trust, it is directed that the said objections shall be decided as a preliminary issue by a reasoned and speaking order. In the event the petition Trust is aggrieved of the decision of its preliminary objections by the Income Tax Officer, Ward 1(2), Kota, the petitioner Trust would be free to avail of its all remedy available in law, including approaching this court by way of writ petition. During the course of argument, the ld counsel for the assessee was asked by the bench whether the similar directions issued by the Hon'ble High Court in respect of A.Y. 2005-06 to 2009-10 in the writ petitions filed by the assessee or not. In reply to the query, the ld counsel has submitted no such direction were issued in respect of assessment year 2005-06 to 2009- 10 . It was submitted that as the petitions became infructuous in view of the order passed by the Hon'ble High Court for the assessment year 2010- 11 , therefore it were not pressed before the Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income and has further not submitted complete details during the assessment proceedings, therefore, the assessments were made as per provisions of Section 144 of the Act on the basis of information/details available on the record and on the basis of that the profit and gain from the business of the assessee was calculated by applying the provisions of Section 145 of the Act vide order dated 18/02/2013. The ld AR of the assessee ,for the appeals under considerations , has submitted that the orders passed by the Assessing Officer qua the ground Nos. 1 and 2 are bad in law as the assessee was not subjected to file the Income tax return and is exempted U/s 10(20) of the Act and it is further the case of the assessee that the revenue has not complied with the provisions of the Act by supplying the reasons and has not complied the judgment of Hon'ble Supreme Court in the case of GKN DRIVESHAFTS (INDIA) LTD. Vs INCOME-TAX OFFICER AND OTHERS [2003] 259 ITR 19 (SC) and therefore on the basis of above, it is submitted that the assessment carried out by the revenue is bad in law. 4. On the other hand, the ld CIT DR has submitted that there is no order of the Hon ble High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time . On receipt of reasons owners of the instant case, as the reasons have been disclosed in these proceedings, the Assessing Officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment in respect of the abovesaid five assessment years. In so far as the appeals filed against the order of assessment before the Commissioner (Appeals), we direct the appellate authority to dispose of the same, expeditiously. With the above observations, the civil appeals are dismissed. 6. In view thereof, we are of the opinion that the ld Assessing Officer was duty bound to furnish the reasons within the reasonable time on receipt of the request from the assessee, since the ld Assessing Officer has failed to provide the reasons for issuing the notice within reasonable time, therefore, we are left with no other option but to set aside the proceedings to the file of the Assessing Officer with direction to provide reasons for issuing notice U/s 148 to the assessee within four weeks from the date of receipt of the order in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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