2009 (7) TMI 1280

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..... a return of income declaring loss of ₹ 2,91,44,958/-. The same was first processed under Section 143(1) of the Income Tax Act, but later notice was issued under Section 148 on 8-9-2005. In response to which the assessee submitted a letter stating that the return originally filed may be treated as a return under Section 148. Thereafter, several notices of hearing were issued to the assessee calling for details in support of the return and these are set out in tabular form in para-5 of the assessment order. On the ground that the assessee did not comply with the notices properly, the AO proceeded to make the assessment after discussing the same with the Additional CIT under Section 144(A). The additional CIT issued certain directions a .....

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..... the ACIT which are prejudicial to the assessee and that in the present case the directions issued by the ACIT merely guided the AO in the manner in which the investigation into the case has to be conducted and that no directions were issued to the AO to disallow or add any particular item. It is contended that a direction merely as to the manner in which investigation is to be conducted cannot be held to be a direction prejudicial to the assessee. We see a good deal of force in the contention of the learned CIT-DR. We have seen the directions issued by the ACIT which are fully reproduced in para-7 of the assessment order. A perusal thereof shows that the learned CIT-DR is right in his submission that the directions only touched upon the ma .....

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..... several opportunities by the AO but failed to note that despite these opportunities the assessee did not furnish the required details before the AO. It is submitted that since there was no reasoning in the order of the CIT(A) the additions and disallowances should be restored. 6. After hearing the learned CIT-DR and going through the orders of the departmental authorities, it appears to us that the matter has to receive fresh consideration in the hands of the AO. As rightly pointed out by the learned CIT-DR, the CIT(A) himself has observed in para-2.2.2 of his order that the AO gave several opportunities of being heard to the assessee. The assessee did not avail of them properly and though it would appear that some details were furnishe .....

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