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TMI Blog2024 (12) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2011-12. The assessee has filed Cross Objections in the said appeal by Revenue. 2. The facts of the case as emanating from records are; Notice u/s. 148 of Income Tax Act, 1961(hereinafter referred to as 'the Act') was issued to the assessee on 23.03.2018. In response to the said notice, the assessee filed return of income on 05.05.2018 declaring income of Rs. 1,34,955/- and agricultural income of Rs. 2,70,468/-. The assessee filed objections against reopening of assessment on 23.08.2018. The contention of the assessee is that the Assessing Officer (AO) in violation of the law laid down by the Hon'ble Supreme Court of India in the case of GKN Driveshafts (India) Ltd vs ITO, 259 ITR 19 completed the assessment without disposing of objec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... using Ltd. vs. ITO 404 ITR 611 (Madras). He submitted that against the decision of Hon'ble High Court, the SLP filed by the assessee was dismissed. 4. Au contraire, Shri Ved Jain appearing on behalf of the assessee vehemently defended the impugned order and prayed for dismissing appeal of the Revenue. He submitted that the AO without disposing of objections filed against reopening of assessment has passed the assessment order. The Hon'ble Apex Court has mandated that the objections have to be decided by the AO by passing a speaking order before proceeding to complete the assessment. Deciding of objections against reopening is not merely a procedural formality but goes to the root of validity of reassessment proceedings. He further pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides have placed reliance. The solitary grievance of the Department in present appeal is against findings of the CIT(A) in quashing assessment order for non disposal of assessee's objections filed against reopening of assessment. The contention of the Revenue is that the AO before proceeding with assessment has disposed of objections of the assessee dated 23.08.2018 vide letter dated 05.09.2018. Before, proceeding further it would be imperative to refer to said letter vide which the objections of the assessee are alleged to have been decided. For the sake of ready reference, the relevant extract of the same is reproduced herein below: "Sub:- Income-Tax assessment proceedings u/s 148/143(3) for the A.Y. 2011-12- regarding- Please refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. The Hon'ble Delhi High Court in the case of Ferrous Infrastructure P. Ltd. (supra) on the issue of non compliance of directions of Hon'ble Supreme Court of India in the case of GKN Driveshafts (supra) held:- "8. We may also point out that the second issue raised by the learned counsel for the petitioners also deserves some consideration. In GKN Driveshafts (supra), the Supreme Court had directed as under:- "However, we clarify that when a notice under Section 148 of the Income Tax Act is issued, the proper course of action for the noticee is to file 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 enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the due procedure. This would lead to unnecessary harassment of the assessee by reviving stale/old matters." 7.3 The Hon'ble Madras High Court in the case of CIT vs. Pentafour Software Employees' Welfare Association (supra), subsequent to the decision rendered in the case of Home Finder Housing Ltd. (supra) held that, the procedure carved out in GKN Driveshafts (India) P Ltd. (supra) is binding, if any order violates the law laid down by Hon'ble Supreme Court of India, then it is without jurisdiction. For the sake of completeness the relevant extract of the observations by Hon'ble High Court are reproduced herein under:- "36. In our considered view, the decision arrived at in the case of Jayanthi Narayanan (supra) reflexes the correct po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer is bound to furnish reasons within a reasonable time, on receipt of the reasons, the noticee is entitled to file objections and the Assessing Officer is bound to dispose of the same by passing a speaking order. 40.We do not agree with the interpretation canvassed before us that assuming objections were not disposed of by a speaking order, it would be only a procedural error. 41.We have referred to Kelvinator of India Ltd. (supra), which has pointed out as to how serious is reopening of a concluded assessment, that too, after four years. The Hon'ble Supreme Court has laid down the law and it has been made mandatory for the Assessing Officer to pass a speaking order. The use of the word "bound" cannot be rendered meaningless. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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