M/S. ODISHA HYDRO POWER CORPORATION LTD.,BHUBANESWAR vs. DCIT, CIRCLE-1(1), BHUBANESWAR

It was submitted by the ld. AR that the only issue in assessee’s appeal was against reopening of the assessment. It was submitted that the original assessment came to be completed on 30.12.2008. It was the submission that the assessment was reopened by issuance of notice u/s.148 of the Act after recording reasons on 16.04.2013. It was the submission that the assessee had filed its objection to the reopening of the assessment and the same has not been disposed off. It was the submission that non-disposal of the objections filed by the assessee is in violation of the principle laid down by the Hon’ble Supreme Court in the case of GKN Driveshafts (India) Ltd., reported in [2003] 259 ITR 19 (SC).

In reply, ld. CIT-DR submitted that he had no issue if the issue is restored to the file of AO for disposal of the objections raised by the assessee.

We have considered rival submissions.

A perusal of the assessment order, it is noticed that the ld. AO does not say in the assessment order that he has disposed off the objections raised by the assessee in respect of reopening of the assessment. In view of the principle of law laid down by the Hon’ble Supreme Court in the case of GKN Driveshafts (India) Ltd. (supra), the assessment order is set aside and the issue is restored to the file of AO to dispose off first the objection filed by the assessee in respect of reopening of the assessment and then continue with the assessment. We further make it clear that all the legal issues are left open.

In the result, appeal filed by the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 22/06/2022.