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TMI Blog2021 (8) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... ll as the rights of an assessee to defend their case. A balancing procedures as contemplated, undoubtedly are to be followed scrupulously by the authorities. Under these circumstances, sources cannot be questioned by the assessee. The very purpose and object of the wider scope provided under Section 147 is to ensure that in the presence of contra materials made available to the AO, a re-opening of assessment is made and persons evaded tax are brought under the network. In the present case, the objections raised regarding the reasons were dealt with by the respondents. Further, the other issues regarding change of opinion is also considered - AO has spelt out certain reasons, which provided a cause for re-opening of assessment and such reasons are sufficient enough and, if the petitioner / assessee is not convinced, it is left open to him to defend the case during reassessment proceedings. In the present case, the Directives issued by the Hon ble Supreme Court of India in the case of GKN Driveshafts (India) Ltd., Vs. Income Tax Officer and others [ 2002 (11) TMI 7 - SUPREME COURT] was followed. The assessee also availed the opportunity and the reasons furnished as well as the object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r challenge in the present writ petition. 4. The learned counsel appearing on behalf of the petitioner mainly contended that the order of assessment was passed, considering all the materials, books of accounts etc., filed by the petitioner. While so, notice under Section 148 was issued only based on the audit objections raised. The audit objection solely cannot be a ground for re-opening of assessment as the assessing authority has not formed any independent opinion nor applied his mind for the purpose of re-opening of assessment, which is a prerequisite condition as contemplated under Section 147 of the Act. Thus, there is an absolute non-application of mind on the part of the assessing authority as the reasons furnished for re-opening would reveal that the audit objection as it is stands extracted. 5. Secondly, the learned counsel for the petitioner urged this Court by stating that in view of the fact that there is no application of mind and the audit objections as it is, was taken as the basis for making reassessment, the decision for re-opening is nothing but change of opinion and on this ground also, the writ petition is to be allowed. 6. With reference to the second issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment. The grounds raised to assail the disposal of objections are untenable as audit objection is a valid ground for the purpose of re-opening of assessment. In the present case, the audit objection would reveal that a survey was conducted and based on the survey conducted under Section 133A of the Act, certain materials, evidences were made available and audit objections were raised and based on such materials provided through the audit objections, the re-opening of assessment is made and therefore, there is no infirmity or perversity as such in respect of exercise of powers by the respondents under Section 147 of the Act. 12. The learned Senior Standing counsel solicited the attention of this Court that each and every issue raised by the petitioner in its objections were elaborately considered by the respondents. When all the issues were considered elaborately and the objections were dealt with by providing reason, it is for the assessee to participate in the process of reassessment and avail further opportunity to be provided and therefore, the writ petition at this juncture is not entertainable. 13. The learned Senior Standing counsel further made a submission that the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. No doubt, it may cause certain inconvenience. However, such inconvenience may not be a ground for quashing of the entire proceedings. The inconveniences would be in respect of closed assessment, a re-opening is made. However, the initial assessment is made only based on the return of income filed by the assessee as well as the documents presented. If any additional information, materials or documents are within the knowledge of the Assessing Officer after passing the assessment order, then he is empowered to re-open the assessment and it is the duty of the assessee to respond to such notice by producing additional materials, enabling the Assessing Officer to form an opinion and pass an order of assessment. Such an inconvenience cannot be construed as deprival of right. It is a statutory obligation as the original assessment order is passed, merely based on the return of income filed by the assessee. The Revenue is provided with an opportunity to re-adjudicate the closed assessment on receipt of certain materials or informations and the Assessing Officer has 'reason to believe' that any income chargeable to tax has escaped assessment. Therefore, this Court is of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is of an opinion that Section 147, the conditions stipulated for re-opening of assessment as well as the scope of Section 133A are unambiguously portrays the powers of the authority to secure informations by conducting survey and such informations provided by way of an audit objections would be a cause for re-opening of assessment under Section 147/148 of the Act. 20. Each provision under Chapter XIV procedure cannot be separated as far as the Income Tax Act is concerned. Each Section has got linkage with one another as far as the procedures to be followed by the authorities competent as well as the rights of an assessee to defend their case. A balancing procedures as contemplated, undoubtedly are to be followed scrupulously by the authorities. Under these circumstances, sources cannot be questioned by the assessee. The very purpose and object of the wider scope provided under Section 147 is to ensure that in the presence of contra materials made available to the Assessing Officer, a re-opening of assessment is made and persons evaded tax are brought under the network. 21. In the present case, the objections raised regarding the reasons were dealt with by the respondents. Furth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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