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TMI Blog2018 (12) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... AO does not reopen assessments, which have been finalized, on his mere whim and fancy and that he does so only on the basis of lawful reasons. A deviation from the directions issued by the Supreme Court in G.K.N Driveshafts (India) Ltd. [2002 (11) TMI 7 - SUPREME COURT] would entail nullifying the proceedings. Although the AO is required to provide reasons, receive objections and pass a speaking order thereon, only after the notice under Section 148 of the Act has been issued; these requirements are an integral part of the safeguards which have been inbuilt for ensuring that the assessments are reopened only for lawful reasons and in a transparent manner. If the said safeguards are flouted, it would invalidate the exercise of jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice on 06.01.2017 for verification of source of cash deposit to which the assessee made no compliance therefore the Assessing Officer inferred that assessee failed to disclose fully and truly all material facts necessary for his assessment. 3. The assessee demanded copy of reasons recorded vide letter dated 14.06.2017. The Assessing Officer supplied copy of the recorded reasons to the assessee on 08.11.2017 and thereafter the assessee submitted to the Assessing Officer that the original return filed by the assessee on 30.07.2010 may be treated as the return filed pursuance to the notice u/s 148 of the Act. The assessee thereafter filed objection against the reopening of the assessment before the Assessing Officer on 06.12.2017. The As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e objections of the assessee for reopening of the assessment was bad in law the said reassessment order was liable to be quashed. The Commissioner of Income Tax (Appeals) was not justified in directing the Assessing Officer to start the reassessment proceedings from the stage of receipt of objections by the assesee. He relied on the decision of Hon ble Delhi High Court in the case of Multiplex Trading Industrial Co. Ltd. 170 (Delhi). 7. On the other hand the Departmental Representative supported the order of the Commissioner of Income Tax (Appals). 8. I have heard the rival submissions and perused the orders of the lower authorities and materials available on record. The undisputed facts of the case are that the assessee filed origi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law and liable to be quashed in view of the decision of Hon ble Delhi High Court in the case of Multiplex Trading Industrial Co. Ltd. 11. I find that the Hon ble Delhi High Court in the case of Multiplex Trading Industrial Co. Ltd. (supra) has held as under : 32. There is yet another safeguard provided to the Assessee which was sought to be side-stepped by the AO. The Supreme Court in the case of G.K.N Driveshafts (India) Ltd. v. ITO: (2003) 259 ITR 19 (SC); (2003) 1 SCC 72 had held that if an Assessee if so desirous, could seek reasons for issuance of notice under Section 148 of the Act and the AO would be bound to furnish the same within a reasonable time. The Court further held that that the noticee would be entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for ensuring that the assessments are reopened only for lawful reasons and in a transparent manner. If the said safeguards are flouted, it would invalidate the exercise of jurisdiction under Section 147 and 148 of the Act. 12. I find that the instant case on the above stated facts the decision of the Hon ble Delhi High Court squarely applies to the case of the assessee. Therefore, respectfully following the above quoted order of the Hon ble Delhi High Court, I set aside the order of the Commissioner of Income Tax (Appeals) directing the AO to commence the reassessment proceeding from the stage of receipt of objections to the reopening filed by the assessee and reframe the reassessment order and allow the grounds of appeal of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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