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TMI Blog2019 (3) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... ary of reasons recorded provided by the AO has not been disposed of by a speaking order. However, AO proceeded to pass the reassessment order impugned herein, which clearly demonstrates that the mandatory requirement of disposing of the objections by the Assessing Officer has not been complied with and on this ground alone, the order impugned deserves to be set aside. See M/S. DEEPAK EXTRUSIONS PVT. LTD. VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1 (4) , BANGALORE [2017 (3) TMI 1257 - KARNATAKA HIGH COURT] - re-assessment order passed by the Assessing Officer as well as demand notice have been set aside. - Writ Petition No. 3533 of 2019 (T-IT) - - - Dated:- 14-2-2019 - MRS. S. SUJATHA J. Petitioner (By Sri. T. Surya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The return of income filed by the Assessee for the assessment year 2011-2012 was taken up for assessment under Section 143(3) of the Act and reference was made to the Transfer Pricing Officer (TPO) for determination of the Arm s Length Price. Respondent No.1 passed an order under Section 143(3) of the Act on 29.05.2015 subsequent to an order passed by TPO under Section 92CA (3) of the Act. 3. Respondent No.1 issued notice dated 23.03.2018 under Section 148 of the Act proposing to re-assess the petitioner for the assessment year 2011-2012. Thereafter, the petitioner filed a letter in response to the notice issued under Section 148 of the Act requesting respondent No.1 to treat the return of income filed on 29.03.2013 as the return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to passing of re-assessment order. 6. Learned counsel placing reliance on the Division Bench judgment of this Court in the case of Deepak Extrusions (P.) Ltd., Vs. Deputy Commissioner of Income Tax, Central Circle 1(4), Bengaluru reported in (2017) 80 taxmann.com 77 (Karnataka) would submit that the law is well settled that if the assessee desires to seek the reasons for issuing the notice, the Assessing Officer is bound to furnish the reasons and upon the receipt of such reasons, the assessee is entitled to file the objections to the issuing of the notice and the Assessing Officer thereafter is bound to dispose of the same by passing a speaking order. In the instant case, the re-assessment order passed by the Assessing Officer wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction of TDS on payments made on account of Software development services and marketing services as laid above, with due approval of the competent authority, copy of which is enclosed herewith. The reply to the query raised in the letter under reference thereby stands disposed from our end. The aforesaid letter indicates that the Assessing Officer has considered the query raised in the letter dated 10.04.2018 and the same was disposed of. But, by no stretch of imagination it can be held to be a speaking order passed by the Assessing Officer considering the objections raised by the assessee. Indeed it was a request made by the assessee to furnish the reasons recorded for initiating the proceedings under Section 147 read with Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be sustained. 12. If the decision of the Assessing Officer is illegal on the face of it, in our view, it would fall in the exceptional category of making departure from the normal principles of self impose limitation of not to interfere in a matter where there is existence of alternative statutory remedy. 10. The aforesaid judgment has been followed by this Court in M/s. Wartyhully Estates Limited Vs. The Income Tax Officer and another (W.P. No.4679/2018) and in M/s. Mindtree Limited Vs. The Assistant Commissioner of Income Tax (W.P. No.63236/2016) wherein the re-assessment order passed by the Assessing Officer as well as demand notice have been set aside. 11. In view of the aforesaid, the writ petition stands allowed. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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