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2018 (9) TMI 1308 - ITAT HYDERABADReopening of assessment - non supply of reasons for reopening - Denial of exemption claimed u/s 10(38) - Held that:- We find that the respective assessee had asked for the reasons for reopening of the assessment in a letter dated 13.10.2016 and it is also not in dispute that the reasons for reopening were not supplied to the assessee. The Hon'ble Supreme Court in the case of GKN Driveshaft India Ltd vs. ITO (2002 (11) TMI 7 - SUPREME COURT), has clearly held that the AO has to supply the reasons for reopening of the assessment to the assessee, if it is asked for, and if the assessee filed its objections to the said reasons for the reopening, the AO has to dispose of the said objections before proceeding to complete the assessment. In the case before us, clearly such a procedure had not been followed by the AO and even before the CIT (A), the assessee's have not been given the copy of the reasons for reopening. Since the assessee’s are already in possession of the reasons for reopening, we are of the opinion that the assessee should be given an opportunity to raise their objections against such reopening, if they so desire - set aside the assessment order to the file of the AO with a direction to allow the assessee to file their objections to the reasons for reopening and upon such receipt, shall dispose of the objections by a speaking order - Decided in favour of assessee for statistical purposes.
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