KAMAL KUMAR GODARA,FARIDABAD vs. ITO WARD - 1(3), FARIDABAD

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ITA 1459/DEL/2020Status: DisposedITAT Delhi19 April 2023AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while non-disposal of objections is a procedural irregularity, it does not render the reassessment order void per se, following the Supreme Court's stance. The matter was restored to the Assessing Officer to deal with the objections and pass a speaking order.

What were the facts?

The assessee challenged reassessment orders under Section 147, arguing that the Assessing Officer failed to dispose of objections raised against the reassessment proceedings. The CIT(A) also did not address these objections.

What were the issues?

Whether the reassessment proceedings are invalid due to the Assessing Officer's failure to dispose of the assessee's objections prior to passing the reassessment order.

Which sections of the Income-tax Act were involved?

Section 147,Section 148

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH “C” DELHI

Before: SHRI KUL BHARAT & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Alok Kumar Gupta, CA
For Respondent: Shri Anuj Garg, Sr.DR
3.

When the matter was called for hearing, the ld. counsel for the assessee at the outset submitted that the assessee had inter alia raised objection to the proceedings initiated under Section 147 of the Act and issuance of notice under Section 148 of the Act both vide letter dated 22.06.2015 for Assessment Years 2008-09 and 2009-10. The Assessing Officer however has omitted to take note of the objections raised and completed the re-assessment without meeting the requirement of disposing of the objection and intimation thereto to the assessee. The CIT(A) in the first appeal has also ignored the contentions of the assessee in this regard. It was thus contended that as a consequence of non disposal of the objections so raised, the valuable right of the assessee to seek legal remedy was denied. It was thus contended that the re- assessment order in question passed in infringement of requirement of law is bad in law and thus nullity in the light of the judgment of the Hon’ble Supreme Court in GKN Driveshaft (I) Ltd. vs. ITO, (2003) 259 ITR 19 (SC).

4.

The ld. DR for the Revenue, on the other hand, submitted that the matter may be restored to the file of the Assessing Officer for disposal of the objection as per the procedure laid down by the Hon’ble Supreme Court in GKN Driveshaft (I) Ltd. (supra) and to cure the procedural irregularity crept in the reassessement proceedings. 5. We have heard the rival submissions and perused the orders of Revenue Authorities. 6. The Hon’ble Supreme Court dismissed the SLP of the assessee in the case of Home Finders Housing Ltd. vs. ITO (2018) 94 Taxmann.com 84 (SC) against the judgment of the Hon’ble

I.T.A No.1458 &1459/Del/2020 3 Madras High Court rendered in the case of Home Finders Housing Ltd. vs. (2018) 93 taxmann.com (Madras). The Hon’ble Madras High Court had held that non disposal of objection raised by the assessee is a procedural irregularity for violation of a procedural safeguard and thus will not render the re-assessment order nonest per se. In consonance with judgment so rendered, we deem it expedient to restore the matter back to the file of the Assessing Officer for dealing with objections raised on behalf of the assessee and pass a speaking order thereon. The Assessing Officer shall reframe the re-assessment order de novo having regard to the objections so raised and meeting other attendant requirements, if any, in accordance with law.

7.

In this view of the matter, we do not consider it necessary to delve into other legal and factual objections raised by the assessee as per its grounds of appeal

at this stage. It shall be open to the assessee to raise all such legal and factual objections before the Assessing Officer in the re-assessment proceedings. The order of the CIT(A) is thus set aside and the proceedings are restored to the file of the Assessing Officer for fresh determination of assessed income in accordance with law after giving proper opportunity to the assessee.

8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 19/04/2023.

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