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TMI Blog2017 (12) TMI 1647X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons is bad in law. Accordingly, the orders framed u/s 147 r.w.s. 143(3) are quashed and the appeal of the assessee is allowed. Since, we have quashed the assessment made u/s 143(3), we consider it is not necessary to adjudicate the grounds on merits. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. CIT(A) that the assessment made without communicating the reasons is bad in law. However, the CIT(A) has considered the argument of the assessee and dismissed the objection raised by the assessee stating that the assessee was aware of the reasons for reopening the assessment and, the assessee has appeared before the AO and participated in impugned assessment proceedings. The Ld.CIT(A) further held that the assessee was given sufficient opportunity and complied with the principles of natural justice. The Ld.CIT (A) viewed that the purpose of communicating the reasons is to give complete opportunity to the assessee which has been achieved and there was no violation of principles of natural justice and accordingly dismissed objection of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal are common for all the three appeals. In all the three appeals, the common ground No.2 is validity of reassessment made u/s 147 of I.T.Act. During the appeal hearing, the Ld.AR submitted that the AO had issued the notice u/s 148 initiating the proceedings u/s 147 for which the assessee had complied with by filing letter to treat the returns already filed earlier as returns in response to the notices u/s 148 of the Act and requested the reasons for initiating the proceedings u/s 147 vide letter dated 16.04.2012 submitted in the Income Tax office on 23.04.2012 . The AO did not furnish the reasons till completion of assessment and only during the appeal proceedings, the AO has communicated the reasons recorded for initiating action u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecific request made by the assessee for furnishing the reasons. As per the judgement of Hon'ble Supreme Court in the case of M/s GKN Drive Shafts (India) Ltd. Vs. ITO, 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 returns filed earlier as returns in response to the notice issued u/s 148. Thus the assessee has complied with the mandate of Hon'ble Supreme Court judgement cited supra but the AO failed to communicate the reasons. The assessee relied on the decision of Hon'ble High Court of Calcutta in the case of Berger Paints India Ltd. Vs. ACIT (Supra), wherein Hon'ble High Court held that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat power to reopen a completed assessment under the Act is an exceptional power and whenever revenue seeks to exercise such power, they must strictly comply with the prerequisite conditions viz. reopening of reasons to believe that income chargeable to tax has escaped assessment which would warrant the reopening of an assessment. " 9.2. In the instant case, the AO had issued notice u/s 148 and the assessee has complied with the notice and requested for reasons. The AO completed the assessment without communicating the reasons. Therefore, the facts of the case are similar to that of the decision of Hon'ble Bombay High Court relied upon by the Ld.AR cited supra. Respectfully following the decision of Hon'ble Bombay High Court, we hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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