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2015 (3) TMI 1028 - BOMBAY HIGH COURTValidly of reassessment proceedings - addition on account of sales made to Johnson & Johnson Exports Limited - Held that:- Tribunal noted that the law is that the reasons ought to be supplied on demand by the assessee. The assessee, therefore, had no occasion to note the reasons and could not object to the same. Since the objection to the same could not be raised for want of supply of reasons, the reassessment proceedings are vitiated The Tribunal noted that the Assessing Officer held that in the earlier assessment years assessee had sold the goods to its subsidiary concern at lesser price than the cost of producing those goods and sold to other parties. This was a vital and material fact not disclosed by the assessee in the return of income for the concerned and subject assessment years. That is why the assessment was reopened. The Tribunal has recorded in that these reasons for reopening the assessment are not at all convincing. The Tribunal concluded that in the notice issued under section 148 for reopening the assessment, the Assessing Officer stated that there was omission on the part of the assessee to furnish the true and correct affairs of the company. Apart from the fact that this was not enough for reopening the assessment the Tribunal found that if the Assessing Officer had any reservation about the sale price of the goods sold to the group concerns he should have questioned the genuineness of the transactions in the earlier assessment years 1993- 1994 to 1995-1996. All information regarding the sale by the assessee was before him. Full and true facts of sale price were made available to the Assessing Officer when he passed the orders for the earlier years.The Tribunal has not merely set aside the reassessment for want of notice or for want of supply of reasons though notice was issued. The Tribunal rested its conclusion also on merits of the reasons for reopening the assessments. That the Tribunal found them to be not sufficient or adequate for reopening the assessment - No substantial question of law. - Decided against revenue.
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