TMI Blog2021 (6) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... not been properly dealt with by the AO. The lapse is in clear violation of the decision of the Apex Court. We are of the view that the AO has passed the order mechanically and without application of his mind. In other words not in a meaningful manner. This writ application succeeds in part. The order disposing of the objections filed by the assessee to this petition is hereby set aside and the matter is remitted to the AO. - R/SPECIAL CIVIL APPLICATION NO. 21120 of 2019 - - - Dated:- 11-5-2021 - HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE ILESH J. VORA Appearance: MR OMKAR C DAVE(2003) for the Petitioner(s) No. 1 MRS KALPANAK RAVAL(1046) for the Respondent(s) No. 1 ORAL ORDER (PER : HONO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue vide its communication dated 08.05.2019 furnished the reasons recorded, which reads as under:- Reasons for reopening :- The assessee company filed its return of income for A.Y. 2012-13 on 29.09.2012 declaring total income at ₹ 5,41,938/-. IN this case assessment order under section 143(3) was passed on 31.03.2014. 2. In this case, information has been received from DDIT (Inv.), Unit2(1), Mumbai vide letter dated 18.03.2018. As per the information received enquiry was conducted by the DDIT (inv.), Unit 2(1), Mumbai, in the case of the assessee and from the enquiry, it was noted that the account of the bearing account no.550011040448 was credited by ₹ 4915333279/- during the year under consideration. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 143(3) was made on 31.03.2014. Since four years from the end of the relevant year has expired in this case, the requirement to initiated proceedings under Section 147 of the Income Tax Act is reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the year under consideration. It is pertinent to mention here that reason to believe that income has escaped assessment for the year under consideration have been recorded above in para 1 to 3. I have caregully considered the assessment records containing the submission made by the assessee in response to the various notices issued duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he reasons recorded and order disposing the objections raised by the writ applicant, it was contended that the AO had mechanically disposed of the preliminary objections. Relying on the decision of GKN Driveshafts (India) Ltd, (2003) 259 ITR 19, it was submitted that the AO should have dealt with each objection and should have assigned cogent reasons for its conclusion, by passing a speaking order. In this context, it was submitted that in the case on hand, although various objections were raised against the impugned 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 13. On the other hand, learned Senior Standing Counsel Mrs. Kalpana Raval appearing for the revenue, reiterating the stand adopted by the revenue in affidavit in reply as well as in the order of disposing of the objections, submitted that the action taken by the AO is just, legal and proper and does not warrant any interference. It was further submitted that the AO has assigned cogent and sound reasons while disposing the preliminary objections filed by the writ applicant. It was further submitted that the impugned notice has been rightly issued by invoking Section 147 of the Act as writ applicant failed to disclose the truly and fully material facts with regard to credit entries as referred by the AO in the reasons recorded for the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 16. Applying the dic ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
