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TMI Blog2022 (11) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Appellant prays that the order passed is also erroneous, illegal & against the principles of natural justice & equity." 3. Ld.AR for the assessee drawing our attention towards summary of assessment proceedings available at pages 4 & 5 of the assessee's Paper Book, submitted that the Assessing Officer ("AO") issued notice u/s 148 of the Income Tax Act, 1961 ("the Act") on 30.03.2017 and in response to the same, the assessee filed return of income declaring income of Rs.NIL on 28.04.2017. The Ld.AR for the assessee further submitted that on 19.07.2017, the AO issued notice u/s 143(2) of the Act fixing the date of hearing on 26.07.2017 and thereafter, on 04.08.2017, the AO issued notice u/s 142(1) of the Act fixing the date of hearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er submitted that non- compliance of such requirement as per the said judgement of the Hon'ble Supreme Court, the assessment order has to be held as void ab-initio of any law and deserves to be quashed. Ld.AR for the assessee also placed reliance on the judgement of Jurisdictional High Court of Delhi in the case of SABH Infrastructure Ltd. Vs ACIT in W.P.(C) 1357/2016 vide order dated 25.09.2017, submitted that AO had not supplied reasons to the assessee alongwith the notice u/s 148 of the Act and the same was provided to the assessee after issuing notice u/s 143(2) and 142(1) of the Act at the very belated stage on 14.09.2017 therefore, impugned re-assessment order has to be held as bad in law and deserves to be quashed. 5. Replying to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 13.03.2017; notice u/s 143(2) of the Act on 19.07.2017 and notice u/s 142(1) of the Act on 04.08.2017. It is also not in dispute that the assessee submitted letter dated 11.08.2017 asking for supply of reasons recorded by the AO and thereafter, reminder letter on 18.08.2017 requesting to supply reasons recorded by the AO for initiation of reassessment proceedings. I also note that ultimately, the assessee received copy of the reasons on 14.09.2017 and submitted its objection to the re-opening of the assessment on 10.10.2017. Copy of which is also available at pages 13 & 14 of the assessee's Paper Book. Ld. Sr. DR has not disputed this very important fact that the AO has passed assessment order on 18.10.2017 u/s 147/144 of the Act withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd to dispose of the same by passing a speaking order. These are specific directions given by the Supreme Court in all cases where notices under Section 148 of the said Act are issued. Surely, the Assessing Officer could not have construed these specific directions to be a mere empty formalities or dead letters? There is a strong logic and purpose behind the directions issued by the Supreme Court and that is to prevent high-handedness on the part of Assessing Officers and to temper any action contemplated under Section 147 of the said Act by reason and substance. In fact, even Section 148(2) stipulates that the Assessing Officer shall, before issuing any notice under the said Section, record his reasons for doing so. The Supreme Court has o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord his reasons for doing so. In view of this provision, no dispute was raised before us about the procedure contemplated under this provision. From a bare perusal of section 148 of the Act, it is clear as crystal that the Assessing Officer is obliged to record reasons before issuing notice under section 148 of the Act...."(underlining added) 6. The decision sought to be relied upon by Mr Madan on behalf of the Revenue in the case of Adobe Systems Software Ireland Ltd. v. Assistant Director of Income Tax, 2014(7) AD 244, is not at all relevant for the present discussion. That was a case which dealt with the furnishing of the reasons to the assessee. The issue which had arisen was whether the assessee was entitled to the reasons without e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tices. 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 abovesaid five assessment years." (underlining added) 9. On going through the same, it is evident that the Assessing Officer has to pass a speaking order disposing of the objections "before proceeding with the assessment". In the present case, a separate speak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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