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TMI Blog2021 (7) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... , BANGALORE [ 2017 (3) TMI 1257 - KARNATAKA HIGH COURT] - Decided in favour of assessee. - ITA No. 382/Bang/2018 - - - Dated:- 28-7-2021 - SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B. R. BASKARAN, ACCOUNTANT MEMBER Appellant by : Shri. Ravishankar, Advocate Respondent by : Smt. R. Premi, JCIT(DR)(ITAT), Bengaluru ORDER Per N.V. Vasudevan, Vice President This is an appeal by the assessee against the order dated 01.12.2017 of CIT(A)-3, Bengaluru, relating to Assessment Year 2009-10. The assessee raised several grounds of appeal. We deem it appropriate to take up for consideration the issue with regard to the validity of the order of reassessment passed in this case on the ground that the AO has not disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormation from the Joint Director, Income Tax (Intelligence and Criminal Investigation), Bengaluru. According to the assessee, he was not served with any notice under section 148 of the Act, but the personnel of the Department visited the assessee at his village and instructed the assessee to file the return of income. Thereafter the assessee filed the return of income dated 14.09.2016. The assessee addressed a letter dated 03.10.2016 to the ITO in which the assessee submitted that it was not served with the notice under section 148 of the Act and that he had filed the return of income only on the basis of the visit of the personnel of the Income Tax Department to his village and calling upon him to file the return of income. The assessee al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at as per the law laid down by the Hon ble Supreme Court in the case of GKN Driveshafts (India) Ltd. (supra), the AO was required to deal with the objections regarding validity of initiation of proceedings under section 147 of the Act by a separate speaking order. Since the AO failed to pass such order, the order passed is liable to be struck out as null and void. 6. The CIT(A) agreed that the AO has not complied with the requirements of the law laid down by the Hon ble Supreme Court in the case of GKN Driveshafts (India) Ltd. (supra) but sustained the order of the AO on the ground that the AO had very little time for completing the assessment proceedings and therefore could not pass a separate order as the limitation period for passing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of the appellant has duly been dealt by the AO in his order. Further, in the case of Principal Commissioner of Income-tax-2, Vadodara v Sagar Developers[2016] 72 taxmann.com 321 (Gujarat) and also in case of Areva T D India Ltd v ACIT [2007] 165 Taxman 123 (Madras), the court held that the intention of the Supreme Court in the case of GK.N Drive shafts (India) Ltd. v. ITO (supra) was never to declare the order of assessment illegal and to permanently prevent the AO from passing any fresh order of assessment, merely on the ground that the AO did not dispose of the objections before passing the order of assessment. Thus the Court held that not passing an order on the objections of the assessee cannot be fatal to the assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of assessment passed cannot be sustained. The Hon ble Court held 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. If the AO does not dispose off the objections prior to proceedings with the assessment and passes an order of assessment, such order of assessment cannot be sustained and is liable to be quashed. Learned DR however placed reliance on the order of the CIT(A) from the decision referred to in the order of CIT(A). Learned Counsel for the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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