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TMI Blog2018 (12) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... and in the circumstances of the case, the Tribunal was justified in law in setting aside the reassessment order by holding that the assessing authority had not supplied the reasons for reassessment even though the assessee was made aware of the crux of the case and the assessee was provided sufficient opportunity of hearing and the assessee had actively contested the case before the assessing authority ?" 2. The findings of the learned Tribunal with regard to quashing of the aforesaid impugned reassessment order is that the reasons recorded by the assessing authority for reopening the assessment were never communicated to the assessee though the same were produced before the learned Tribunal for perusal. The findings of the Tribunal are qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings regarding supply of reasons recorded for reopening of the assessment. Thus by no stretch of imagination it can be inferred from the proceedings recorded on November 4, 2011 that the reasons recorded for reopening of the assessment were furnished to the authorised representative of the assessee. This fact is again supported by the letter dated December 21, 2012, wherein the asses see has again stated that despite his request dated February 10, 2011, the reasons recorded for reopening were not furnished and again requested the Assessing Officer for furnishing the same. The Com missioner of Income-tax (Appeals) (CIT(A)) issued a remand order to ascertain the fact of supply of furnishing of the reasons recorded for reopening of the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vember 22, 2011, wherein he has stated that the return filed under protest on February 11, 2011, declaring an income of Rs. 3,06,922 should be taken as return filed in response to the notice under section 148 of the Income-tax Act. The assessee has also filed a copy of computation of the total income along with the return. That last para of the above remand report states that a copy of rea sons for reopening was duly handed over to the assessee on November 4, 2011 vide order sheet noting. We have already discussed the order sheet dated November 4, 2011 and found that there is nothing in the said proceedings to indicate that the reasons recorded for reopening of the assessment were furnished by the Assessing Officer of the assessee. Thus t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reasons recorded for the reopening then the Assessing Officer is bound to supply the same and on filing of the objections by the assessee, the Assessing Officer has to first decide the same before completing the reassessment. Therefore the Assessing Officer is bound to dispose of the objections before the completion of the reassessment and thus it gives jurisdiction to the Assessing Officer to complete the reassessment. The condition of supply of the reasons and disposing of the objections prior to completion of reassessment is mandatory and therefore any development post completion of reassessment without furnishing of the reasons would not affect or obliterate the mandatory condition and the legal consequence thereof. The reasons sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is in the value of a procedural requirement to appraise the assessee of the actual grounds which made the Assessing Officer to arrive at a prima facie satisfaction that there was escapement of income in the assessment warranting reopening of the assessment proceedings. The disposal of such objection must be before the date of hearing and passing a fresh order of assessment. In case, on a consideration of the objections submitted by the assessee, the Assessing Officer is of the view that there is no ground made out to proceed, he can pass an order to wind up the proceedings. It is only when a decision was taken to overrule the objections, and to proceed further with the reassessment process, the Assessing Officer is obliged to give disposa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings were duly noted by the authorised representative appearing on behalf of the assessee and therefore, such assessee should be deemed to have been made aware of the reasons for reopening does not impress us. 7. The Tribunal has clearly noted in its order after looking into the record of the case that the reasons which were placed before the learned Tribunal itself only for the first time were never communicated to the assessee during the contemporary period. Mere participation of the assessee or authorized representative in the reassessment proceedings does not amount to the assessee being made aware or known of the reasons for such reopening. The reasons now quoted by the learned Tribunal in the impugned order clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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