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TMI Blog2018 (7) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... arned CIT (A)-2, .Jalandhar has erred in upholding the order of ld. AO as the proceedings initiated by the learned A.0 are bad in law & without any justification &/or in excess of jurisdiction & consequently reassessment order passed by him should be quashed & annulled. 2. That on fact of circumstances of the case, the proceedings initiated u/s 147 are liable to be quashed where there was no fresh martial available with A.O. & the assessment has been completed originally u/s 143(3). 3. That mechanical approval for reopening has been granted by higher authority without judicious application of mind. 4. That no addition u/s 68 of Rs. 2,97,50,000/- accounts of share capital, share application, share premium can be made as no money wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garh for issuing of shares at a premium of Rs. 700/- per share. iv) Copy of Balance Sheet, Profit & Loss A/c alongwith Audit Report including all schedules and computation of assessable income for the A.Y.2009-10. v) Copies/statements of Bank Accounts being maintained by the Co. for the period under consideration. The Ld. AR of the assessee attended the assessment proceeding on 27th March, 2015 and filed written submissions objecting the proceeding. However, it is admitted fact that the Assessing Officer without disposing of the objections of the assessee proceeded with the assessment proceeding, and finally added Rs. 2,97,50,000/- in the income of the assessee. The reassessment order was challenged before the Ld. CIT(A) by raising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018} [94 taxman.com 84 (SC)]. and submitted that noncompliance of direction of Supreme Court in GKN Driveshafts (India) Ltd. v. ITO [2002] 125 Taxman 963, to the effect that on receipt of objection given by assessee to notice under section 148, Assessing Officer is bound to dispose off the objections by passing a speaking order, would not make reassessment order void ab initio. 6. Having heard the rival submissions of the parties and gone through the material available on record, we realized that the assessee vide letter dated 25th March, 2015 specifically raised the objections qua initiations of the proceedings u/s 147 of the Act. As it is clearly reflects from the order passed by the Assessing Officer as well as the Ld. CIT(A) that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a speaking order." 6.1 The procedure to be followed when a notice under Section 148 of the said Act is issued has been settled by the decision of the Supreme Court in the case of GKN Driveshafts (India) Ltd v. Income-Tax Officer and Ors. (2003) 259 ITR 19 in the following words:- We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under section 148 of the Income-tax Act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt. As the Assessing Officer is bound to dispose off the objection(s) of the assessee by passing speaking order before proceeding with the re-assessment, hence, the appropriate course should be to restore back the matter to the file of the Assessing Officer with a direction to dispose off the assessee's objections by passing speaking order thereon and thereafter, to proceed with the reassessment proceeding, if required, as per law. We, therefore, set aside the impugned order passed by the Ld CIT(A) with direction to the Assessing Officer for passing a speaking order on assessee's objections and thereafter can proceed further, if required, as per law. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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