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TMI Blog2017 (10) TMI 1598X X X X Extracts X X X X X X X X Extracts X X X X ..... he record of the Assessing Officer for deciding the objections of the assessee by a separate speaking order and in case the objections of the assessee are rejected then after allowing the assessee a period of four weeks the Assessing Officer may pass the assessment order. Assessee has raised the objection against the reassessment on the ground that when the provisions of Section 153C are applicable in the case of the assessee then the Assessing Officer cannot resort to the provisions of Sections 147 and 148 - These objections of the assessee were not considered and decided by the CIT (Appeals) therefore, when the objections of the assessee are directed to be considered and decided by the Assessing Officer by a separate speaking order as the issue raised in the revenue s appeal, the objections raised by the assessee in the C.O. are also therefore set aside to the record of the Assessing Officer for considering and deciding the same along with the other objections. - C.O. No.224/Bang/2015 & I.T. A. No.1220/Bang/2015 (Assessment Year : 2006-07) - - - Dated:- 27-10-2017 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER Revenue By : Shri M.K. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the course of assessment order itself. Since the issue of validity of reassessment has been decided by the CIT (Appeals) by considering only one objection of the assessee out of various objections raised by the assessee in the appeal before the CIT (Appeals) therefore, both the revenue as well as assessee are aggrieved by the impugned order and raised the following grounds in the appeal as well as in the Cross objection as under : Revenue s Grounds 3. First we take up the appeal of the revenue wherein the revenue has challenged the impugned order of the CIT (Appeals) quashing the reassessment for want of deciding objections against the notice under Section 148 of the Act by a separate order. The ld. DR has submitted that it is a case where the assessee has filed the objection only on 28.3.2013 and therefore it was not possible for the Assessing Officer to defer the completion of assessment which was time barring on 31.3.2013. Thus in the circumstances wherein the Assessing Officer was having no option but to deal with the objection of the assessee along with the assessment proceedings in a combined assessment order. He has relied upon the following decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. Vs. ITO (supra) as the Assessing Officer has not followed the same therefore the impugned assessment is invalid and liable to be quashed. The Assessing Officer cannot be given a second innings for make up the illegality in the assessment proceedings. In support of his contention, he has relied upon the decision of Hon'ble Bombay High Court dt.3.10.2016 in the case of KSS Petron P. Ltd. Vs. ACIT in ITA No.224 of 2014 as well as the decision of the Delhi Bench of the Tribunal in the case of Rajat Shubra Chatterji Vs. ACIT in ITA No.2430/Del/2015 Dt.20.05.2016. 5. Having considered the rival submissions as well as the relevant material on record, we note that so far as the legal proposition on the issue there is no quarrel that the Assessing Officer is bound to dispose off the objections raised by the assessee against the notice issued under Section 148 of the Act by a separate speaking order and thereafter the assessment order has to be passed as per law laid down by the Hon'ble Supreme Court in the case of GKN Drive Shafts (India) Ltd. Vs. ITO (supra). There are divergent views of the diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons have been disclosed in these proceedings, the Assessing Officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment in respect of the above said five assessment years. 6.1 In a subsequent decision in the case of Garden Finance Ltd. v. CIT (Asst.) [2004] 268 ITR 48 (Guj), the effect of the Supreme Court decision in the case of GKN Driveshafts [2003] 259 ITR 19 came up for consideration and by a majority opinion it was laid down by the Hon ble Court: What the Supreme Court has now done in the GKN Driveshafts (India) Ltd.'s case [2003] 259 ITR 19 is not to whittle down the principle laid down by the Constitution Bench of the apex court in Calcutta Discount Co. Ltd. case [1961] 41 ITR 191 but to require the assessee first to lodge preliminary objection before the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case it is apparent that the action of the respondent authority in framing the reassessment order, without first disposing of the preliminary objections raised by the petitioner, cannot be sustained. Accordingly, the reassessment order dated December 16, 2008 is hereby quashed and set aside and the respondent authority shall dispose of the preliminary objections by passing a speaking order and only thereafter proceed with the reassessment proceedings in accordance with law. Considering the fact that the normal period of limitation, for framing reassessment pursuant to notice dated March 3, 2008, issued under section 148 of the Act, has already expired on December 31, 2008, in the peculiar facts and circumstances of the case it would serve the ends of justice if the respondent authority is directed to abide by the following schedule : (i) The respondent authority shall dispose of the preliminary objections raised by the petitioner within a period of 4 (four) weeks from by passing a speaking order in accordance with law; (ii) Thereafter, the respondent authority shall undertake reassessment proceedings, if necessary, and shall complete the same within a period of 4 (four ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the co-ordinate Bench of this Tribunal in the case of Hajee Hameed Vs. DCIT (supra) in paras 11 12 as under : 11. We have considered the rival submissions of both the parties and have carefully gone through the material available on record. In the present case, it appears that when the AO issued notice u/s. 148 of the Act for reopening the assessment, the assessee filed objections and those objections were not disposed of by the AO. This fact has also been admitted by the ld. CIT(A), who observed that he was not inclined to agree with the assessee that merely because the AO had not considered his objection to the notice u/s. 148, the entire assessment becomes bad in law. On a similar issue, Their Lordships of the Hon ble Supreme Court in the case of GKN Driveshafts India Ltd. v. ITO Ors. (2003) (supra) at page 20 held as under: . The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons have been disclosed in these proceedings, the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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