TMI Blog2017 (8) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... . Departmental Representative based on the provisions of section 292BB of the Act is concerned, the same in my view, is of no consequence as it is inserted by the Finance Act, 2008 w.e.f 01/04/2008 and is, therefore, prospective in operation, and is thus, not applicable for the instant proceedings.- Decided in favour of assessee. - ITA No.7337/MUM/2016 - - - Dated:- 23-8-2017 - SHRI G.S.PANNU, ACCOUNTANT MEMBER For The Appellant : Shri Anuj Kisnadwala For The Respondent : Ms. N. Hemalatha ORDER The captioned appeal filed by the assessee pertaining to assessment year 2007-08 is directed against an order passed by CIT(A)-29, Mumbai dated 28/09/2016, which in turn, arises out of order passed by the Assessing Officer un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above grounds of appeal. 3. At the time of hearing, the Ld.Representative for the assessee has raised a preliminary issue, which is manifested in Ground of appeal No.2 above, that the impugned reassessment order made by the Assessing Officer under section 143(3) r.w.s. 147 of the Act is bad in law because the Assessing Officer did not communicate the reasons recorded for reopening of assessment to the assessee. Since the said issue goes to the root of the jurisdiction of the Assessing Officer to make the assessment, the same is being adverted to at the threshold. 4. The rival Counsels have been heard with respect to the aforesaid issue and the relevant record perused. The issue is being disposed off in the following paras. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T vs. IDBI Ltd. (2016) 76 taxmann.com 227 (Bom) (ii) CIT vs.Videsh Sanchar Nigam Ltd.,340 ITR 66(Bom) (iii) Videsh Sanchar Nigam Ltd. vs. JCIT, ITA No.7626/Mum/2004 Dated 30/10/2009.(Mumbai Tribunal) (iv) Industrial Development Bank of India vs. DCIT, ITA No1391/Mum/2004 1394/mum/2004 dated 12/12/2012. (Mumbai Tribunal) (v) Trend Electronics v. ITO, ITA No.902/Mum/2013 dt.25/03/2013 (Mumbai Tribunal) (vi) Telco Dadajee Dhackjee Ltd. vs. DCIT, ITA No.4613/Mum/2005 Dated 12/05/2010 (Mumbai Tribunal) 5.2 Elaborating the fact-situation, the Ld. Representative for the assessee pointed out that even before the CIT(A) similar point has been raised, but the same has been dismissed inspite of the fact that the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons to the assessee have to be strictly complied with. In the case of Trend Electronics (supra), the Hon'ble Bombay High Court held that the failure to furnish reasons recorded, when sought by the assessee would invalidate the reassessment. In this context, the Hon'ble Bombay High Court followed its earlier decision in the case of Videsh Sanchar Nigam Ltd. (supra) and held that an order passed in reassessment proceedings is bad in law in case the reasons recorded for reopening of the assessment sought by the assessee have not been furnished. The following discussion in the order of the Hon'ble Bombay High Court is relevant:- These recorded reasons as laid down by the Apex Court must be furnished to the assessee when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no proof of supply of reasons to the assessee. In fact, the following portion of the remand report to the CIT(A) is relevant, which reads as under:- 3. In this regard, this is to submit that a letter sending the reasons to the assessee on 1/8/2014 is on record (copy enclosed) by erstwhile ITO 14(1)(2), Mumbai, however, no acknowledgement is on record. For obtaining the acknowledgement of the service of the reasons, the undersigned has written a letter dated 15/9/2016 to the present ITO18(1)(2) (erstwhile ITO14(1)(2). A copy of the acknowledgement will be forwarded to your honour as and when the same is received from the office of the ITO18(1)(2). 4. However, it is also noticed that during the course of the assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are being made to trace out the requisite document and the same will be provided as soon as it becomes available. The aforesaid reply of the Department also clearly point out that there is no proof of the reasons having been furnished to the assessee. Quite clearly the assessee in the present case had sought for the reasons recorded and there is no material on record to say that the same have been furnished to him before completion of assessment. Therefore, following the judgment of the Hon'ble Bombay High Court referred above, the impugned assessment is held to be bad in law. 7.2 In so far as the plea of the Ld. Departmental Representative based on the provisions of section 292BB of the Act is concerned, the same in my view, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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