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Issues involved:
- Validity of reassessment proceedings under section 147/148 Analysis: The judgment pertains to two separate appeals filed by the assessee against orders of the CIT(A) for the assessment years 1994-95 and 1995-96. The primary issue raised in both appeals was the validity of the reassessment proceedings initiated under section 147/148 of the Income Tax Act, 1961. The assessee contended that the Assessing Officer (AO) failed to provide the reasons for reassessment before issuing the notice under section 148, depriving the assessee of the opportunity to object to the proceedings. The counsel for the assessee highlighted that even the CIT(A) did not furnish a copy of the reasons recorded for initiating the reassessment proceedings. On the other hand, the Departmental Representative supported the orders of the Departmental authorities. Upon considering the submissions, the Tribunal emphasized that it is well-established that the reasons recorded by the AO under section 147/148 must be communicated to the assessee, allowing them to raise objections to the initiation of proceedings. The Tribunal observed that neither the CIT(A) nor the Departmental authorities provided the reasons to the assessee as required by law. Consequently, the Tribunal set aside the CIT(A)'s order and directed the CIT(A) to supply a copy of the reasons recorded by the AO for initiating the proceedings under section 147/148. Additionally, the assessee was to be granted a hearing to present their objections. The Tribunal instructed the CIT(A) to pass a fresh order in compliance with the law, ensuring a reasonable opportunity of hearing for the assessee. As a result of the above findings, both appeals filed by the assessee were treated as allowed for statistical purposes, indicating a favorable outcome for the assessee in challenging the validity of the reassessment proceedings under section 147/148.
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