TMI Blog2018 (12) TMI 1461X X X X Extracts X X X X X X X X Extracts X X X X ..... our of assessee - I.T.A.Nos.113-116/Viz/2018 - - - Dated:- 21-12-2018 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N.Hari, AR For The Respondent : Smt. Suman Malik, AR ORDER PER D.S. SUNDER SINGH, Accountant Member: These appeals are filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-12,Hyderabad vide Appeal No.10327/2017-18 dated 06.03.2018 for the Assessment Years(A.Ys.)2008-09 to 2011-12. Since the facts involved in all these appeals are identical, the appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. 2. All the appeals are related to the issue of non-communication of reasons recorded for reopening the assessment u/s 147 of the Income Tax Act, 1961 (hereinafter called as Act ).The assessee raised four identical grounds in all the appeals which reads as under : 1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The assessing officer did not supply copy of the reasons recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and challenged the validity of assessment and submitted during the appeal proceedings that the AO did not furnish the copy of the reasons recorded for issue of notice u/s 148 in spite of the assessee s request and argued that the assessment made u/s 148 is invalid and relied on the decision of this Tribunal in the case of Sri Sarvaraya Sugars Ltd., in I.T.A. Nos.294,295,576/Viz/2014 dated 20.12.2017, but did not succeed before the CIT(A). The Ld.CIT(A) observed that the assessee has written a letter on 21.01.2016 and 08.08.2016 to the AO requesting to furnish the reasons for issue of notice u/s 148, which was duly replied by the AO stating that the reasons were communicated to the Ld.AR during the course of assessment proceedings and was noted by Ld.AR, thus viewed that the AO complied with the request of the assessee. Since, the reasons were communicated to the Ld.AR, the Ld.CIT(A) rejected the contention of the assessee that the reasons were not communicated and accordingly dismissed the appeal of the assessee on this ground. 6. Against the order of the CIT(A), the assessee is in appeal before us. During the appeal hearing, the Ld.AR submitted that the assessee has written a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.AR s argument is that the AO did not supply the reasons for reopening of assessment, hence the assessment made u/s 143(3) r.w.s. 147 is invalid. As per the decision of Hon ble Supreme Court, on receipt of the notice u/s 148, the assessee required to file the return of income and thereafter the assessee is permitted to ask for the reasons recorded for issue of notice u/s 148 of the Act. Once, the AO receives request from the assessee for supply of reasons, the AO is bound to supply the reasons recorded for reopening the assessment. In this case, the AO has not supplied the copy of the reasons recorded for issuing notice u/s 148, however, during the hearing, the reasons recorded for issue of notice u/s 148 were stated to be communicated to the AR who has noted the reasons, therefore, the AO is under the impression that the decision of the Hon ble Supreme Court in the case of GKN Driveshafts (India) Ltd. (2003) [259 ITR 19) is properly complied with. In support the Ld.DR placed order sheet copy before us. We have gone through the order sheet copy and observed that it is not signed by the authority who has recorded the order sheet. It also does not bear page number of entry dated 22. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal in para No.8 to 10 which reads as under : 8. We have heard both the parties and perused the material placed on record. The assessee has filed reply to the notice u/s 148 and requested the AO to treat the return filed on various dates as mentioned in the table in para 2 as returns in response to the notice u/s 148 of the I.T.Act and also requested to furnish the reasons recorded for issue of notice u/s 148. The AO completed the assessment without communicating the reasons recorded. On appeal the Ld.CIT(A) dismissed the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... completed the assessment without communicating the reasons. Therefore, the facts of the case are similar to that of the decision of Hon ble Bombay High Court relied upon by the Ld.AR cited supra. Respectfully following the decision of Hon ble Bombay High Court, we hold that the assessment made u/s 147 r.w.s. 143(3) without communicating the reasons is bad in law. Accordingly, the orders framed u/s 147 r.w.s. 143(3) are quashed and the appeal of the assessee is allowed. Since, we have quashed the assessment made u/s 143(3), we consider it is not necessary to adjudicate the grounds on merits. 8.1. The Ld.AR relied on the decision of Hon ble Delhi High Court in the case of Sabh Infrastructure Ltd. Vs. Asst. Commissioner of Income Tax (2017) [398 ITR 0198 (Delhi)], wherein, the Hon ble High Court given the guidelines in the matters regarding reopening of assessment. For ready reference, we extract relevant part of the order of the Hon ble Delhi High Court in the case of Sabh Infrastructure Ltd. Vs. Asst.Commissioner of Income Tax (supra) in para No.19 which reads as under : 19. Before parting with the case, the Court would like to observe that on a routine basis, a large num ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and it could give rise to a challenge to the reopening notice. It is undisputed fact that the reasons recorded for issuing reopening notice where never communicated to the Respondent Assessee in spite of its repeated requests. Thus, the grievance of the Revenue on the above count is unsustainable. 8.4. Ld.AR also relied on the decision of CIT Vs.VSNL (2012) 340 ITR 0066, wherein, the Hon ble Bombay High Court held that non furnishing of reasons to the assessee renders the assessment invalid. 8.5. In the instant case, though the Ld.DR argued that the assessee is made known the reasons recorded by an order sheet entry, the order sheet is defective in as much as it does not bear the signature of the AO and the reasons recorded were not separately communicated in writing to the assessee. In the absence of signature of the AO, the order sheet entry dated 22.02.2016 is unauthenticated and cannot be given much weightage. As per the decisions cited supra, it is held by the Hon ble High Courts that the reasons required to be communicated to the assessee properly. The department could not place any evidence or any other decision of the Higher Court or Tribunal to controver ..... X X X X Extracts X X X X X X X X Extracts X X X X
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