TMI Blog2021 (1) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... lkies Distributors [ 2017 (9) TMI 192 - DELHI HIGH COURT] held that the assessment proceedings cannot be held to be valid in the absence of furnishing of reasons recorded by the AO to the assessee. Hon'ble Supreme Court in the case of M/s. GKN Driveshafts Pvt. Ltd.[ 2002 (11) TMI 7 - SUPREME COURT] held that after filing of the return in response to the notice issued u/s. 148, the assessee has every right to seek the reasons recorded for the assessment and Assessing Officer is bound to furnish the reasons within the reasonable time. In the instant case, since the fact of furnishing of the reasons recorded by the AO has not been established and keeping in view, the fact that the revenue could not provide any evidence to prove that the reasons recorded indeed have been supplied to the assessee, we hereby hold that the reassessment proceedings are vitiated. - Decided in favour of assessee. - ITA No. 3152/Del/2018 - - - Dated:- 22-12-2020 - Amit Shukla, Member (J) And Dr. B.R.R. Kumar, Member (A) For the Appellant : Rajesh Jain, CA For the Respondents : Ramesh Singh, Sr. DR ORDER Dr. B.R.R. Kumar, Member (A) 1. The present appeal has been filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s should have been invoked, as per law, was section 153C of the Act which is specific contains notwithstanding clause for other sections of the Act under the facts of the case. 8. Without Prejudice to above legal jurisdictional ground, otherwise, also the learned Assessing Officer erred in treating the share application money received to the tune of ₹ 50,00,000/- from various corporate shareholders as escaped income without considering the evidences furnished by the appellant, as quasi judicial Officer. 3. The assessee has also raised additional grounds of appeal: 1. The proceedings u/s-147 of the Act initiated by the learned A.O. is illegal as the same has been initiated mechanically simply following communication from Investigation Wing, without independently applying his mind on the facts, and consequently, the Assessment Order is totally illegal and hence liable to be quashed. 2. That the assessment u/s. 147 of the Act is illegal, unlawful, arbitrary and without jurisdiction on account of lack of application of mind and without being objectively satisfied u/s. 151 of the Act by Principal Commissioner of Income Tax. 3. That the assessment u/s. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appellate authority has all the powers which the original authority may have in deciding the question before it subject to the restrictions or limitations, if any, prescribed by the statutory provisions. In the absence of any statutory provision, the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter. There is no good reason to justify curtailment of the power of the Appellate Assistant Commissioner in entertaining an additional ground raised by the assessee in seeking modification of the order of assessment passed by the Income-tax Officer. This Court further observed that there may be several factors justifying the raising of a new plea in an appeal and each case has to be considered on its own facts. The Appellate Assistant Commissioner must be satisfied that the ground raised was bona fide and that the same could not have been raised earlier for good reasons. The Appellate Assistant Commissioner should exercise his discretion in permitting or not permitting the assessee to raise an additional ground in accordance with law and reason. The same observations would apply to appeals before the Tribunal also. 7. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry in the guise of share capital. 10. Before us, the ld. AR argued that the assessee has not been provided the copy of the reasons recorded and hence the assessment is nullity based on the ratio of Hon'ble Supreme Court in the case of GKN Driveshafts Pvt. Ltd. 259 ITR 18. 11. The ld. DR argued that the reasons have been duly supplied to the assessee. 12. This being a factual matter, we have obtained the assessment records and gone through the contents. 13. First, we have gone through the assessment order to examine whether the reasons recorded have been issued to the assessee or not, or was there any discussion on this issue or not. We did not find any discussion on this issue in the assessment order. We have examined the order of the ld. CIT (A) (page no. 27) wherein the assessee has taken the issue of non-supply of reasons recorded before initiating the reassessment proceedings. The ld. CIT (A) held that the matter was remanded to the AO for a report on the contentions of the appellant and the report of the AO has been supplied to the assessee also. Further the ld. CIT (A) held that the AO has duly carried out his functional and statutory duties and held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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