2021 (4) TMI 1384 - HC - Income Tax

Validity of Reopening of assessment u/s 147 - order under challenge is non-speaking and therefore, the petitioner is not in a position to defend the case properly - HELD THAT - The competent authority under the Statute, is expected to furnish reasons for forming such an opinion. In the absence of any such reasons, one cannot expect the assessee to defend the case properly. The Hon'ble Supreme Court of India, in clear terms, held that the order, reopening the assessment must contain the reasons, enabling the assessee to defend the case with reference to the documents and evidences available. This being the basic principles to be followed, the impugned order is non-speaking and therefore, untenable. Accordingly, the order impugned passed by the ACIT in proceedings is quashed and the matter is remanded back to the respondent for fresh consideration and pass a speaking order. WP allowed.

Summary

The High Court of Madras quashed the non-speaking order dated 28.03.2018 issued by the Assistant Commissioner of Income Tax under Section 148 of the Income Tax Act. The Court directed the respondent to provide reasons for reopening the assessment within three months for the petitioner to defend properly. The writ petition was allowed with no costs.