SRI.DAMODAR REDDY,BANGALORE vs. INCOME TAX OFFICER, BANGALORE

The assessee has raised the following grounds :

4. We find that the assessee has challenged the validity of reassessment in the ground raised in the present appeal however the said issue was not raised by the assessee before the CIT (Appeals).

We have heard the learned Authorised Representative as well as learned Departmental Representative and considered the relevant material on record on the point of admission of additional ground. The additional ground raised by the assessee is purely legal in nature and goes to the root of the matter. The assessee has contended that the reasons recorded for reopening of the assessee were not communicated to the assessee despite a specific request made by the assessee vide letter dt.22.2.2012. Thus it is contended that the assessment framed by the Assessing Officer without supplying the reasons recorded and deciding the objections against the Notice issued under Section 148 separately is not sustainable in law and liable to be quashed.

On the other hand, the learned Departmental Representative has objected to the additional ground raised by the assessee and submitted that the assessee did not raise this issue before the authorities below then it cannot be accepted that the assessee demanded the reasons and the reasons were not supplied to the assessee.

We have considered the rival submissions as well as the relevant material on record. In support of his contention that the Assessing Officer has not supplied the reasons recorded for reopening of the assessment despite a specific request made by the assessee. He has also filed an Affidavit dt.7.3.2017 wherein the assessee has stated that he had requested for reasons recorded by the Assessing Officer vide letter dt.22.2.2012. We find that the order of the Assessing Officer as well as the CIT (Appeals) are silent on this issue and therefore it is not possible to give a concluding finding without referring to the assessment record on this point. Further it is well settled proposition of law that in case the assessee demands the reasons recorded for reopening of assessment the Assessing Officer is duty bound to supply the reasons and then decide the objections if any filed by the assessee against the Notice issued under Section 148 prior to the framing of reassessment. Thus in the facts and circumstances of the case, when this issue has not been raised and considered by the authorities below, we remit this issue to the record of the CIT (Appeals) for adjudication as per law. Since the issue of validity of the reopening has been remitted to the record of the CIT (Appeals) therefore the other grounds raised on merit are also remitted to the record of the CIT (Appeals) for consideration and adjudication on merit.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 5th May, 2017.