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TMI Blog2019 (5) TMI 1768X X X X Extracts X X X X X X X X Extracts X X X X ..... ile dealing with the objections of the assessee. For that reason, the impugned assessment orders are legally unsustainable. Whether in such circumstances, the re assessment orders passed have to be quashed as void ab initio or they are to be restored back to the Assessing Officer for enabling him to dispose of the objections of the assessee and pass fresh assessment orders ? - In our view, the issue is no more res integra in view of the decision of the Hon'ble Jurisdictional High Court in KSS Petron Pvt. Ltd. [ 2016 (10) TMI 1112 - BOMBAY HIGH COURT ] High Court has held that if the re assessment order is passed without disposing of the objections raised by the assessee, they have to be quashed and no second opportunity can be given to the Assessing Officer to pass fresh assessment orders after disposing of the objections of the assessee. No infirmity in the orders passed by learned Commissioner (Appeals) in holding the assessment orders passed to be legally unsustainable. -Decided against revenue. - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER For the Revenue : Shri Choudhary Arunkumar Singh For the Assessee : Shri F.V. Irani ORDER PER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to complete the assessments under section 143(3) r/w section 147 of the Act by disallowing the bond issue expenditures in both the assessment years. The assessee challenged the assessment orders so passed by filing appeals before the first appellate authority. 4. Before learned Commissioner (Appeals), the assessee while challenging the validity of the re assessment order passed contended that without disposing of the objections raised by the assessee against the re opening of the assessment under section 147 of the Act, the Assessing Officer could not have passed the assessment orders. Learned Commissioner (Appeals) after considering the submissions of the assessee and on verifying the facts on record found that, though, in the course of assessment proceedings the assessee had raised objections challenging the initiation of proceedings under section 147 of the Act, however, the Assessing Officer neither during the assessment proceedings passed a speaking order rejecting the assessee s objection nor he has done so in the assessment order. Therefore, he held that the assessment orders passed without disposing off assessee s objections are legally unsustainable. Of course, she furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of separate orders before completion of assessment proceedings under section 143(3) r/w 147 of the Act. The Hon'ble Supreme Court in GKN Driveshafts India Ltd. (supra) has held that before completion of the assessment, the Assessing Officer is duty bound to dispose of the objections of the assessee separately. Therefore, the Assessing Officer in the instant appeal has not followed the due judicial process while dealing with the objections of the assessee. For that reason, the impugned assessment orders are legally unsustainable. Now the issue which arises is, whether in such circumstances, the re assessment orders passed have to be quashed as void ab initio or they are to be restored back to the Assessing Officer for enabling him to dispose of the objections of the assessee and pass fresh assessment orders. In our view, the issue is no more res integra in view of the decision of the Hon'ble Jurisdictional High Court in KSS Petron Pvt. Ltd. (supra), wherein, the Hon'ble Jurisdictional High Court has held that if the re assessment order is passed without disposing of the objections raised by the assessee, they have to be quashed and no second opportunity can be given to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akkare Karkhane Ltd. while disposing of Civil Appeal no.2432 of 2019 in judgment dated. 01.03.2019. Therefore, it cannot be said that in the aforesaid decision, the Hon'ble Supreme Court has laid down the proposition that non disposal of objections against the validity of proceedings initiated under section 147 of the Act is a procedural irregularity which can be cured if the Assessing Officer is given an opportunity to dispose of the objections of the assessee and thereafter complete the assessment. Moreover, the decision of the Hon'ble Supreme Court in GKN Driveshafts India Ltd. (supra) has not been overruled and still holds the field. The next decision cited by the learned Departmental Representative is of the Hon'ble Jurisdictional High Court in NTUC Income Insurance Co operative Ltd. v/s DDIT, [2013] 33 taxmann.com 255 (Bom.). On a careful reading of the aforesaid decision, it is evident that the facts on the basis of which the Hon'ble Jurisdictional High Court restored back the issue to the Assessing Officer to re frame assessment de novo is completely different from the present appeal. In the case before the Hon'ble Jurisdictional High Court, the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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