TMI Blog2017 (12) TMI 1647X X X X Extracts X X X X X X X X Extracts X X X X ..... hed the assessment made u/s 143(3), we consider it is not necessary to adjudicate the grounds on merits. - Decided in favour of assessee. - I.T.A.No.294/VIZ/2014, I.T.A.No.295/VIZ/2014, I.T.A.No.576/VIZ/2014 - - - Dated:- 20-12-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For the Appellant : Shri G.V.N. Hari, AR For the Respondent : Smt. R.M. Madhavi, DR ORDER PER D.S. SUNDER SINGH, Accountant Member: 1. These appeals are filed by the assessee against the order of the Commissioner of Income-Tax (Appeals) [CIT(A)], Visakhapatnam vide order dated 27.03.2014, 14.08.2014 and 15.09.2014 for the A.Ys. 2006-07 to 2008-09. Since the issues involved in these appeals are common, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessment made u/s 143(3) r.w.s. 147 without communicating the reasons is bad in law and required to be quashed. 4. Aggrieved by the order of the AO, the assessee went on appeal before the CIT(A) and raised the issue with regard to the assessment made u/s 143(3) r.w.s. 148 and argued before the Ld. CIT(A) that the assessment made without communicating the reasons is bad in law. However, the CIT(A) has considered the argument of the assessee and dismissed the objection raised by the assessee stating that the assessee was aware of the reasons for reopening the assessment and, the assessee has appeared before the AO and participated in impugned assessment proceedings. The Ld.CIT(A) further held that the assessee was given suffic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said case. 6. The Appellant submits that the above grounds are independent and without prejudice to one another. The Appellant craves leave to add to or alter, by deletion, substitution or otherwise, the above grounds of appeal, at any time before or during the heating of the appeal.' 6. The above grounds of appeal are common for all the three appeals. In all the three appeals, the common ground No.2 is validity of reassessment made u/s 147 of I.T.Act. During the appeal hearing, the Ld.AR submitted that the AO had issued the notice u/s 148 initiating the proceedings u/s 147 for which the assessee had complied with by filing letter to treat the returns already filed earlier as returns in response to the notices u/s 148 of the Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee s appeal on the validity of the assessment for non communication of the reasons stating that the assessee had responded to the notice and participated in the assessment proceedings. 9. The AO has completed the assessment without communicating the reasons recorded for issue of notice u/s 148, in spite of the specific request made by the assessee for furnishing the reasons. As per the judgement of Hon ble Supreme Court in the case of M/s GKN Drive Shafts (India) Ltd. Vs. ITO, it is obligatory on the part of AO to communicate the reasons on furnishing the return of income. The assessee in response to the notice issued u/s 148 submitted a letter to the AO to treat the returns filed earlier as returns in response to the notice iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a). Further it also follows the decision of this Court in Videsh Sanchar Nigam Ltd. (supra) in holding that an order passed in reassessment proceedings are bad in law in the absence of reasons recorded for issuing a reopening notice under Section 148 of the Act being furnished to the assessee when sought for. It is axiomatic that power to reopen a completed assessment under the Act is an exceptional power and whenever revenue seeks to exercise such power, they must strictly comply with the prerequisite conditions viz. reopening of reasons to believe that income chargeable to tax has escaped assessment which would warrant the reopening of an assessment. 9.2. In the instant case, the AO had issued notice u/s 148 and the assessee has comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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