TMI Blog2023 (12) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... er failure to furnish the reasons for reopening on a request made would vitiate the assessment proceedings, it was held that it was mandatory for the Assessing Authority to furnish reasons and if the Assessing Authority fails to do so, the re-assessment proceedings is liable to be set aside. Further, after referring to the judgment of the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. [ 2002 (11) TMI 7 - SUPREME COURT] it was held that non-furnishing of reasons would cause serious prejudice and would vitiate the proceedings, resultantly the impugned proceeding was quashed The impugned order under Section 147 of the Act is made contrary to and in gross disregard/ non-compliance with the procedure laid down for reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded to disallow the deduction under Section 35(1) of the Act to the extent of Rs. 35,00,000/- and an assessment order under Section 143(3) of the Act, came to be passed, determining the total income of the petitioner as Rs. 1,84,37,270/-. 3. Whileso, the petitioner received a notice under Section 148 of the Act, dated 29.07.2019 from the Respondent, seeking to reopen the assessment for the AY 2016-17 under Section 147 of the Act. In response to the above notice issued under Section 148 of the Act, the petitioner vide letter dated 15.11.2019, informed the Respondent that the petitioner had filed its return of income on 16.10.2019 and requested the Respondent to provide the reasons for reopening the assessment, at the earliest. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the notice under Section 142(1) and the show cause notice was grossly insufficient and thus in breach of basic principle of natural justice. While the petitioner was gathering documents to respond to the aforementioned notices, the Respondent had passed the impugned order under Section 147 of the Act on 30.09.2021. 6. The present writ petition is filed challenging the order dated 30.09.2021 on the premise that the proceedings stands vitiated inasmuch as it has been completed in gross disregard to the decision of the Hon'ble Supreme Court in the case of GKN Driveshafts Ltd. vs. Income Tax Officer reported in 259 ITR 19 (SC) wherein the assessing authorities were directed to furnish the reasons for reassessment if sought for by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Tribunal was right in allowing the assessee's appeal and quashing the reassessment proceedings 7. It may also be relevant to refer the following judgments wherein orders made in disregard to the procedure laid down in the case of GKN Driveshaft for reassessment was held to be fatal to its validity. The following extracts are relevant in this regard: i) Bayer Material Science Pvt. Ltd. v. Deputy Commissioner of Income-Tax, 2016 SCC OnLine Bom 15952: 9. This passing of the draft assessment order without having disposed of the objections is in defiance of the Supreme Court's decision in GKN Driveshafts (India) Ltd. (supra). Thus, the draft assessment order dated March 30, 2015 is not sustainable being withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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