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TMI Blog2017 (12) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... DER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri M.S.R.Prasad, AR For The Respondent : Shri M.N.MurthyNaik, DR ORDER PER D.S. SUNDER SINGH, Accountant Member: 1. This appeal is filed by the assessee against the order of the Commissioner of Income-Tax (Appeals), Vijayawada vide ITA M/s S.V.R.Neuro Truama Super Speciality Hospitals (P) Ltd. No.206/CIT(A)/VJA/2013-14dated 30.03.2015 for the assessment year 2010-11. 2. The assessee filed total six grounds of appeal along with the appeal memo but the grounds of appeal are argumentative and lengthy, hence the assessee filed revised and concise grounds of appeal covering all the issues during the appeal hearing on 21.11.2017. Hence on the request of the Ld.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reasons. The Ld.AR further submitted that as per the judgement of Hon ble Supreme Court in the case of M/s GKN Drive Shafts (India) Ltd. Vs. ITO [259 ITR 19], it is obligatory on the part of AO to communicate the reasons on furnishing the return of income. The assessee in response to the notice issued u/s 148 submitted a letter to the AO to treat the return filed on 29.01.2011 as return in response to the notice issued u/s 148. Thus the assessee has complied with the mandate of Hon ble Supreme Court cited supra but the AO failed to furnish the reasons, hence the assessment made u/s 143(3) r.w.s 147 is invalid and required to be quashed. The assessee relied on the decision of Hon ble High Court of Calcutta in the case of Berger Paints In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of M/s GKN Drive Shafts(India) Limited Vs. ACIT framed the guidelines on what should be done when the notice is issued. As per the guidelines framed by the Hon ble Supreme Court, proper course of action for the notice is to file return of income and seek reasons for issuing the notices. The AO is bound to furnish the reasons within the reasonable time. On receipt of reasons, the assessee is entitled to file objections to the issuance of notice and the AO is bound to dispose of the objections by passing speaking order. Hon ble High Court of Calcutta in the case of Berger Paints India Ltd. Vs. ACIT cited supra held that the AO cannot proceed with the assessment u/s 147 unless the reasons are communicated. We have called for the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt, vide order dated July 16, 2007. Facts of the instant case are similar to that of M/s Videsi Sanchar Nigam Ltd. And Berger Paints Ltd. Cited supra. Therefore, respectfully following the decisions of Hon ble Bombay High court and the Calcutta High court we hold that the AO cannot proceed to make the reassessment without communicating the reasons and the assessment order framed u/s 147 without communicating the reasons required to be quashed. Accordingly, the assessment order made u/s 143(3) r.w.s. 147 is hereby quashed. The appeal of the assessee is allowed on this ground. 8. Ground No.3 and 4 of the revised grounds of appeal are related to the additions made by the AO on merits. Since we have quashed the assessment order made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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