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TMI Blog2021 (7) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... er of reassessment passed in this case on the ground that the AO has not disposed off the objections with regard to validity of reopening of assessment under section 148 of the Income Tax Act, 1961 (hereinafter called 'the Act') and the action of the AO in this regard is allegedly contrary to the law laid down by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. Vs. ITO 254 ITR 19. The grievance of the assessee in this regard is projected in ground No. 3 n) which reads as follows: n) The assessment order is further bad in law as the objections to the reasons under section 148 have not been disposed of by a speaking order and hence contrary to law and on this count also the assessment is liable to be cancelled on the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lage and calling upon him to file the return of income. The assessee also submitted that he should be given a copy of the reasons recorded by the AO before issue of notice under section 147 of the Act. A copy of the reasons recorded by the AO was furnished to the assessee and thereafter the assessee addressed a letter dated 24.10.2016 to the AO. The assessee submitted that the proceedings under section 148 of the Act are invalid by pointing out that the land in question were agricultural land and outside the purview of the definition of capital asset as given in section 2(14) of the Act. Besides the above, the assessee also challenged the validity of the proceedings under section 147 of the Act on the ground that no notice under section 148 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss a separate order as the limitation period for passing assessment order was very short. The findings of the CIT(A) in this regard are contained in paragraph 5.2 of his order which reads as follows: "5.2 The appellant has also argued that the sanction of the Pr. CIT was not obtained before issue of notice u/s 148 of the Act. This argument of the appellant is also without any merits a perusal of the assessment records shows that the approval of Pr. CIT was duly obtained by the AO and the' approval was duly granted by Pr. CIT on 28.03.2016. The appellant has further argued that the AO has not disposed off its objection to the reasons recorded u/s 148 of the Act by passing a speaking order as contemplated by the decision of the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee cannot be fatal to the assessment proceedings and the same is a mere irregularity. Considering above the related grounds of appeal of the appellant are dismissed." 7. The sum and substance of the conclusion of the CIT(A) is that the AO could not pass a separate order on the objections with regard to proceedings under section 147 of the Act due to paucity of time available to the AO and that the non-compliance with the requirements as laid down by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. (supra) will not render the order of assessment null and void. In this regard, the CIT(A) has placed reliance on two decisions (1) decision of the Hon'ble Gujarat High Court in the case of Principal CIT Vs. Sagar De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of CIT(A). Learned Counsel for the assessee however brought to our notice that Hon'ble Madras High Court has taken a contrary view to the view taken in the case referred to by the CIT(A) in the impugned order and in this regard referred to the decision of Hon'ble Madras High Court in the case of Jayanthi Natarajan 401 ITR 215 and Pentafour Employees' Welfare Foundation 312 CTR 35 (Madras). 9. We have given a careful consideration to the rival submissions. The facts are undisputed that the assessee raised objections with regard to validity of initiation of proceedings under section 147 of the Act by his letters dated 03.10.2016 and 24.10.2016 after filing the return of income. The admitted position is the AO has not disposed off the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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