TMI Blog2022 (11) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... N GARG, JM : This appeal filed by the assessee against the order of Ld. CIT(A)-7, New Delhi in Appeal No.10153/144/CIT(A)-7/Del/2017-18 dated 20.08.2018 for the assessment year 2010-11. 2. The grounds raised by the assessee are as follows:- 1. On the facts and in the circumstances of the case, the Appellant prays that the order passed is bad in law as well as on facts of the case. 2. That the Appellant prays that the order passed is also erroneous, illegal against the principles of natural justice equity. 3. Ld.AR for the assessee drawing our attention towards summary of assessment proceedings available at pages 4 5 of the assessee s Paper Book, submitted that the Assessing Officer ( AO ) issued notice u/s 148 of the Income Tax Act, 1961 ( the Act ) on 30.03.2017 and in response to the same, the assessee filed return of income declaring income of Rs.NIL on 28.04.2017. The Ld.AR for the assessee further submitted that on 19.07.2017, the AO issued notice u/s 143(2) of the Act fixing the date of hearing on 26.07.2017 and thereafter, on 04.08.2017, the AO issued notice u/s 142(1) of the Act fixing the date of hearing on 11.08.2017 and the assessee submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, copy of the reasons recorded by the AO was provided to the assessee on 14.09.2017 and no prejudice has been caused to the assessee as it received the reasons recorded by the AO for initiation of assessment proceedings u/s 147 of the Act. In the very beginning of the proceedings, therefore, merely on this basis, reassessment order cannot be held as bad in law. On being asked by the Bench, Ld. Sr. DR could show us any exercise by the AO to dispose of objections raised in the initiation of the reassessment proceedings by the assessee on 10.10.2017. Ld. Sr. DR lastly submitted that the impugned reassessment order cannot be quashed merely on technical reasons therefore, legal grounds of assessee may kindly be dismissed. 6. Placing re-joinder to the above, Ld.AR for the assessee again drew our attention towards judgement of the Hon ble Supreme Court in the case of Ferrous Infrastructure (P.) Ltd. Vs DCIT [2015] 63 Taxmann.com 201 (Delhi) and submitted that when the AO did not pass a speaking order to dispose the assessee s objection to reassessment proceedings u/s 148 of the Act and reassessment proceedings in pursuance to the said notice deserves to be set aside. 7. On car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spose of the same by passing a speaking order. These are specific directions given by the Supreme Court in all cases where notices under Section 148 of the said Act are issued. Surely, the Assessing Officer could not have construed these specific directions to be a mere empty formalities or dead letters? There is a strong logic and purpose behind the directions issued by the Supreme Court and that is to prevent high-handedness on the part of Assessing Officers and to temper any action contemplated under Section 147 of the said Act by reason and substance. In fact, even Section 148(2) stipulates that the Assessing Officer shall, before issuing any notice under the said Section, record his reasons for doing so. The Supreme Court has only carried forward this mandatory requirement by directing that the reasons which are recorded be communicated to the assessee within a reasonable period of time so that at that stage itself the assessee may point out any objections that he may have with regard to the initiation of action under Section 147 of the said Act. The requirement of recording the reasons, communicating the same to the assessee, enabling the assessee to file objections and the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. If they are not so recorded, then the notice under Section 148 and proceedings pursuant thereto are without authority of law. In the present case, it is evident that the reasons were recorded only on 18.09.2012, i.e., after the notice under Section 148 had been issued on 30.08.2012. Clearly, the statutory provisions, as explained by judicial decisions, indicate that the notice under Section 148 would be invalid and consequently all proceedings pursuant thereto would also be vitiated. 8. We may also point out that the second issue raised by the learned counsel for the petitioners also deserves some consideration. In GKN Driveshafts (supra), the Supreme Court had directed as under:- However, we clarify that when a notice under Section 148 of the Income Tax 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 notices. The assessing officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the assessing officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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