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TMI Blog2019 (9) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessments are invalid for non communicating the reasons to the assessee. In the order passed on 21.12.2018, the ITAT has given a finding that the AO has not communicated the reasons though the assessee has requested for the reasons. The relevant part of the finding of the ITAT is discussed in para No.9 of the order which reads as under : "9. The AO has completed the assessment without communicating the reasons recorded for issue of notice u/s 148, in spite of the specific 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. Vs. ITO held as under : "8. We find that the impugned order merely applies the decision of the Apex Court in GKN Driveshafts (India) Ltd. (supra). Further it also follows the decision of this Court in Videsh Sanchar Nigam Ltd. (supra) in holding that an order passed in reassessment proceedings are bad in law in the absence of reasons recorded for issuing a reopening notice under Section 148 of the Act being furnished to the assessee when sought for. It is axiomatic that 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Supreme Court in the case of S.Narayanappa Vs. CIT (63 ITR 219) held that non communication of reasons is not fatal to the validity of assessment proceedings. The department further stated that it has brought, the decision of S.Narayanappa in MA No.28-30/Viz/2018 in the case of M/s Sarvaraya Sugars Ltd. dated 07.12.2018, therefore submitted that since the decision of S.Narayanappa Vs. CIT is available on the records of the ITAT, Visakhapatnam and the same was not considered at the time of disposal of the appeal, the same amounts to mistake apparent from record hence, requested to recall the order and readjudicate the appeal. 3. During the hearing of the Miscellaneous Application, the Ld.DR relied on the contents of the Miscellaneous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he department. The scope of section 254(2) was considered by the coordinate bench of ITAT, Bangalore in Gowthami Associates. v. Income Tax Officer, Ward 2 (2) (2), Bangalore, [2018] 89 taxmann.com 192 (Bangalore - Trib.) held as under: "7. Section 254 of the Act reads as follows : " (2) The Appellate Tribunal may, at any time within [six months from the end of the month in which the order was passed], with a view to rectifying any mistake apparent from the record, amend any order passed by it under subsection (1), and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer." The Hon'ble Karnataka High Court in CIT v. Mc. Dowell & Co. Ltd. [2009] 310 ITR 215/177 Taxman 317 after co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a review of the earlier order of the Tribunal by reconsidering the application of principles laid down by superior Courts to the facts of the case or by reconsidering its findings recorded, or by reconsidering the application of the relevant provisions of law to the facts of the case. Such a course is not permissible under Section 254(2) of the Act, as held by the Hon'ble Karnataka High Court. In this factual and legal matrix of the case, we dismiss this M P filed by the assessee in the case on hand." Further the decision of Hon'ble Supreme Court in S.Narayanappa vs.CIT 63 ITR 219 was delivered much earlier than the decision of Hon'ble Supreme Court in GKN Drive Shafts (India) Ltd and related to validity issue of notice under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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