TMI Blog2015 (1) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... Y HIGH COURT] and also Alana Cold Storage vs. ITO ( [2006 (9) TMI 123 - BOMBAY HIGH COURT]) holding that the re-assessment is bad in law for non-supply of reasons for re-opening. - Decided in favour of assessee - ITA No.19/Bang/2014 AND Cross Objn.No.81/Bang/2014 (In ITA No.19/Bang/2014) - - - Dated:- 9-1-2015 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER And SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER For the Appellant : Dr.Shankar Prasad, JCIT(DR). For the Respondent : Shri V.Srinivasan, CA. ORDER Per Smt. P.MADHAVI DEVI, JM: The appeal is filed by the revenue and the crossobjections filed by the assessee against the order of the CIT(A) II, Bangalore, dated 31/10/2013 for the assessment year 2009- 10. 2. Brief fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came to conclusion that the assessee has no objection to the issuance of notice u/s 148 as he has complied with the provisions of sec.148, 142(1) till 12/07/2012. Thereafter, he proceeded to consider the nature of the sum of ₹ 41,50,000/- and held it to be revenue in nature and hence taxable income. 3. Aggrieved, the assessee preferred an appeal before the CIT(A) raising objections with regard to the non-supply of reasons for re-opening of the assessment. The CIT(A) called for a remand report from the AO as to the supply of reasons for reopening to the assessee. But since the AO failed to file any remand report and rebut the contentions of the assessee, the CIT(A), following the decision of the Hon ble Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 and after considering the decision of the Tribunal at Delhi in the case of Smt. Gurinder Kaur (cited supra) and also the decision of the Hon ble Bombay High Court in the case of VSNL in ITA No.4235 of 2010 dated 20/07/2011 has held that the order of the reassessment has to be held as a nullity for non-furnishing of reasons recorded for initiating proceedings u/s 147 of the IT Act. Copy of the order of the Tribunal is also placed before us. 5. Having regard to the rival contentions and the material on record, we find that there is no dispute that the assessee had requested the AO to furnish reasons for reopening of the assessments and that the AO failed to supply the assessee copy of the said reasons. The Hon ble Supreme Court, in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. In our view, on filing of the return on 30.03.2007, the request of the assessees for furnishing the reasons recorded in their letter dt 03.10.2006 gets reactivated and the Assessing Officer is bound to furnish the reasons recorded. Admittedly in the present case before completion of the assessment proceedings the reasons recorded were not furnished to the assessee. This Tribunal in the case of Synopsis International (supra), after considering the decision of the Hon'ble Bombay High Court in the case of VSNL (Supra) had taken a view that non-furnishing of the reasons recorded before completion of the assessment proceedings renders the order of assessment a nullity. The learned DR, however, relied on the decision of the Delhi Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly following the decision of the Bombay High Court, we hold that the order of reassessment in the present case has to be held as a nullity for non-furnishing of the reasons recorded for initiating proceedings u/s.147 of the Act. Respectfully following the decision of the co-ordinate Bench of the Tribunal on similar set of facts, we see no reason to interfere with the order of the CIT(A). In the result, the revenue s appeal is dismissed. 6. The cross-objection filed by the assessee is against nondisposal by the CIT(A) of the assessee s grounds of appeal against merits of the addition made by the AO. However, the very foundation for reopening of the assessment has been knocked down by the CIT(A) which has been upheld by us in para.5 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
