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TMI Blog2021 (5) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... y the AO including the details pertaining to the bank entries and various transactions made during the year under consideration. The writ applicant vide letter dated Nil (at page 62 to 67) had furnished various details like bank particulars, bank statements, purchase and sales ledgers, etc. The AO after considering the details furnished by the writ applicant, framed the assessment under Section 143(3) of the Act. 3. Thereafter, the AO issued impugned notice dated 31.03.2019 under Section 148 of the Act for reopening of the assessment for the year 2012-13. In response to the notice, the writ applicant filed its return of income and asked to provide reasons recorded for the reassessment. The revenue vide its communication dated 07.05.2019 furnished the reasons recorded, which reads as under:- Reasons for reopening :- "2. Please refer to your return of income filed for A.Y.2012-13 filed in response of Notice u/s 148 of the IT Act vice e-filing ack. No.468809351290419 filed on 29.04.2019. 2. In this connection, reason for re-opening of the case fo A.Y. 2012-13 are as under the assesses company filed its return of income for AY 2012-13 on 30.09.2012 declaring total income of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /NEFT. Internal transfer credits totaled to Rs. 0.67 Crs were received from A/c No. 550011039103 of Gyan Gems and Rs. 0.76 Crs were remitted back. There is no economic rationale for such U-Turn transactions and reasons for routing such transactions are not known to Bank. (2) Eight Direct Import remittances amounted to Rs. 3.26 Crs. were affected by the customer towards import of Rough Diamonds from Antwernpen, Belgium. Remittances were made in favor of Chintan Gems, Simplex Diam, Brinks globe Services, Diabex NV etc,. There is no reason for the customer who is into Maintenance or repair services to remit funds for import of above goods. Bank will forward copies of the Bill of Entries submitted by the customer in respect of Direct Remittances to Customs authorities to verify its genuineness. (3) Actual turnover is far in excess of turnover declared at the time of opening of account. Further no Payments towards utility bills, business expenses or taxes were noted in the account which is unlikely while running a commercial business.(4) During the visit to customers business address, Bank officials notice that, premise was locked and no business activity noted. During the year unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Income Tax as per the provisions of section 151 of the Act. 3. In view of the judgment of Hon'ble GHC in the case of Sahkari Khand Udhyog Mandal Ltd., it is expected from you to put your your say, if any, within 60 days of receipt of this letter containing reasons of re-opening n your case. 'i) Once the Assessing Officer serves to an assessee a notice of reopening of assessment section 148 of the Income-tax Act, 1961, and within the time permitted in such Notice, the assessee files his return of income in response to such notice, the Assessing Officer shall supply the reasons recorded by him for issuing such notice within 30 days of the filing of the return by the assessee without waiting for the assessee to demand such reasons. ii) Once the assessee receives such reasons, he would be expected to raise his Objections, if he so desires, within 60 days of receipt of such reasons. iii) If objections are received by the Assessing Officer from the assessee within the lime permitted hereinabove, the Assessing Officer would dispose of the objections, as far as possible, within four month of date of receipt of the objection filed by the assessee. iv) This is be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed notice, yet the AO failed to take note of the objections and mechanically disposed of the same without assigning the reasons on the issues. Therefore, it was submitted that the impugned notice as well as the order disposing the objections are required to be set aside. 8. Mr. Sunit Shah, the learned Senior counsel relying upon the case of SABH Infrastructure Ltd Vs. ACIT, (2018) 99 Taxmann.com 409 (Delhi), further contended that there is a clear violation of the directions issued by the Delhi High Court. It was submitted that at the time of providing the reasons recorded for the reassessment, the respondent failed to provide the necessary approval accorded by the Competent Authority and other documents which may form the basis of reasons and enquiry conducted by the AO. 9. It was submitted by the learned counsel Mr. Sunit Shah for the writ applicant that in the previous assessment proceedings, the writ applicant had furnished all the details and based on the details provided, the AO had framed the assessment order under Section 143(3) of the Act, and now on the same material, the AO sought to reopen the assessment which is nothing but a change of opinion and therefore, mere cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by passing reason order. In the case of GKN Driveshaft (supra), the Supreme Court has laid down the procedure as to the manner of dealing with the objections raised against the notice under Section 148 of the Act. The Supreme Court has held that when a notice under Section 148 of the Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notice. It was further held that the AO is bound to furnish reasons within a reasonable time and upon receipt of reasons, the noticee is entitled to file an objection to issuance of notice and AO is bound to dispose of the same by speaking order. In the case of SABH Infrastructure Ltd (supra), the Delhi High Court, has held that the exercise of considering the assessee's objections to the reopening of the assessment is not a mechanical ritual. It is a quasi judicial function. The order disposing of the objection should deal with each objection and give proper reason for conclusion. The order should reflect proper application of mind. 14. Applying the dictum as laid down by the Supreme Court in the case of GVK Driveshaft (supra), we are of the view that disposing of the object ..... X X X X Extracts X X X X X X X X Extracts X X X X
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