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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Ambika Transport Services P. Ltd. DCIT Cir 4(1)(2) R. No. 640, 6th Floor, Aayakar 74/90, Babu Genu Rd, Souri Bldg, Kalbadevi-02 Vs. Bhavan M.K. RD PAN No.AAACA4044R Mumbai-20 Appellant .. Respondent .. Shri Subodh L. Ratnaparkhi, AR Assessee by Revenue by .. Shri Pradeep Kumar Singh, DR .. Date of hearing 24-05-2017 Date of pronouncement .. 07-06-2017 O R D E R PER MAHAVIR SINGH, JM:
This appeal by the assessee is arising out of the order of CIT(A)-9, Mumbai, in appeal No. CIT(A)-9/Cir.4/170/15-16 dated 02-12-2016. The Assessment was framed by DCIT Circle-4(1)(2), Mumbai for the A.Y. 2011-12 vide order dated 19-03-2015 u/s 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter ‘the Act’).
The first issue in this appeal of assessee is as regards to the assessment of jurisdiction for re-opening of assessment under section 147 read with section 148 of the Act. For this assessee has raised following ground No.1: -
“On the facts and in law, the Hon. CIT (A) erred in upholding the re-opening of assessment u/s 147 of the IT Act 1961, not appreciating that (i) the re-opening of assessment u/s 147 of the I. Tax Act 1961, by issue of the notice u/s 148, without there being any independent and valid reason that any income chargeable to tax had escaped assessment, made the re-opening bad-in- law and Ambika Transport Services P. Ltd. A.Y:11-12 (ii) the objections raised by the appellant against re-opening of assessment, not being decided and disposed off by the id AO, resulted in the assessment being invalid and void-ab-intio.
At the outset, the learned counsel for the assessee stated that the AO has not disposed of the objection raised by the assessee for re-opening of the assessment vide his letter dated 03-02-2015 filed on 06-02-2015. The assessee enclosed copy of letter at pages 34 and 35 of assessee’s paper book. I have gone through the order of the AO but find that the AO has not even touch the objections raised by the assessee and as mandated by the Hon’ble Supreme Court in the case of GKN Drivehafts (India) Ltd. Vs. ITO & Ors, 259 ITR (SC) that completion of assessment without disposing of objection raised by the assessee is not appropriate as per law. As requested by the learned Counsel for the assessee of setting aside the orders of the lower authorities and for direction to the AO to dispose of the objections raised for reopening of assessment, I set aside the orders of the lower authorities and directed the AO to first disposed off the objection raised vide letter dated 03-02-2015, filed on 06-02-2015. After disposing of the objections in case, the AO satisfied that reopening is as per law, he will deal with the merits of the issue also. The appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of assessee is allowed for statistical purposes.
Order pronounced in the open court on 07-06-2017.