Entire Reassessment proceedings invalid, if assessee precluded from raising objection against Reopening of Assessment: ITAT [Read Order]

reassessment proceedings - assessee - reopening of the assessment - ITAT - taxscan

The Income Tax Appellate Tribunal (ITAT), Delhi Bench ruled that the entire reassessment proceedings invalid, if assessee precluded from raising objection against reopening of the assessment.

The assessee has raised the issue that the CIT(A) has erred both in law and in facts of the case in upholding the reassessment proceedings and consequential reassessment order on the ground that impugned reassessment order has been passed without providing copy of reasons recorded along with satisfaction note of approving authority under section 151 of Income Tax Act despite specific request made by the appellant during assessment proceedings. Therefore, the resultant order of reassessment is non-est and needs to be quashed.

The assessee vide letter requested the AO to provide a copy of the reasons recorded, performa for obtaining sanction under section 151 and evidence of satisfaction given by the authority under section 151 of the Act. The assessment was completed without providing the above documents. The AO was under obligation to provide reasons.

The assessee urged that AO has never provided a copy of the reasons under section 148 as well as sanction under section 151 of the Act. Therefore, the entire assessment order is null and void ab initio.

The coram of B.R.R. Kumar and Bhavnesh Saini after considering the totality of the facts and circumstances, noted that assessee was not provided a copy of the reasons recorded for reopening of the assessment and satisfaction under section 151 of the Act despite demand is made by the assessee in writing before AO.

The ITAT said that the assessee was precluded from raising objection against reopening of the assessment at assessment proceedings. The valuable right of the assessee has been denied by the authorities below in this regard.

Therefore, the tribunal held that the entire reassessment proceedings are nullity, invalid and bad in law. The entire reassessment proceedings are vitiated and, as such, liable to be quashed.

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