Income tax re-assessment order passed without communicating the reason for re-assessment is invalid has been held by the Jaipur Bench of the Income Tax Appellate Tribunal (ITAT).
The assessee challenged the order of the CIT(A)-1, Jaipurdated 29-11-2019 for the assessment year 2010-11 on various grounds.
The assessee, Shri Banwari Lal Pareek alleged that the CIT(A) has erred in upholding the validity of the assessment order without providing the reasons for reopening the assessment by the Assessing Officer (AO) despite the specific request made by the assessee during the assessment proceedings.
It was clear that the assessee had been demanding the reasons recordedand in this regard the reply dated 27-11-2017 of the assessee written to the Income Tax Officer, wherein the assessee had specifically asked and demanded the AO to provide the reasons for issuance of Notice u/s 148 of the Act to the assessee which was not provided.
The Tribunal viewed that the AO was bound to furnish reasons recorded by him within a reasonable time as has been held in the case of GKN Driveshafts (India) Ltd. vs ITO (supra).Further observed that the reassessment order cannot be upheldsince the reasons recorded for reopening of the assessment were not furnished to the assessee till the completion of the assessment.
Shri Sandeep Gosain, JM & Shri Rathod Kamlesh Jayantbhai, AM observed that the reasons were not supplied to the assessee during the contemporary period before going ahead with the reassessment proceedings, then the reassessment proceedings initiated and the consequential order passed by the AO and the appeal order passed by the CIT(A) are not justified and quashed the reassessment order. The appeal of the assessee was allowed.
The assessee was represented by Shri Ashok K Gupta, Advocate & Shri S.L. Jain and the revenue was represented by Shri A.S. Nehra.
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