Sanjay Agrawal, Allahabad V. ACIT, Allahabad

ITA 49/ALLD/2011

• Counselvise Citation: 4920714 RSA 2011
• Duration Of Justice: 4 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-07-2015
• Assessment Year: 1998-1999
• Appeal Filed On: 21-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SINGH
• Assessee Lawyers: R R AGRAWAL
• Keywords: Reason to believe
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH ALLAHABAD BEFORE SHRI P.K. BANSAL , ACCOUNTANT MEMBER I.T.A. NO. 49 / ALLD/201 1 ASSESSMENT YEAR: 1998 - 99 SANJAY AGRAWAL, VS. ACIT (CENTRAL CIRCLE), 4, KATRA ROAD, ALLAHABAD. ALLAHABAD. P AN: ACVPA 0901F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.R. AGRAWAL, A.R. REVENUE BY : SHRI A.K. SINGH , DR. DATE OF HEARING: 06 .08.2015 ORDER PER : P.K. BANSAL , A CCOUNTANT MEMBER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) , ALLAHABAD DATED 29.11 .201 0 FOR THE ASSESSMENT YEAR 1998 - 99 . 2. IN THIS CASE, THE ASSESSEE HAS TAKEN THE ADDITIONAL GROUND THAT THE ORDER PASSED BY THE ASSESSING OFFICER IS ILLEGAL AND THE IMPUGNED ISSUE HAD NO REASON AS RECORDED BY HIM HAS NOT BEEN SUBMITTED TO THE ASSESSEE AND THEREFORE THE PROCEEDING INITIATED U/S.148 OF THE INCOME TAX IS WHOLLY ILLEGAL AND WITHOUT JURISDICTION. THE ADDITIONAL GROUND TAKEN BY THE ASSESSEE IS LEGAL AN D I THEREFORE AFTER HEARING BOTH THE PARTIES ADMIT THE ADDITIONAL 2 GROUND I N VIEW OF THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF NATIONAL THERMAL POWER CORPORATION LTD. VS. CIT REPORTED IN 229 ITR 383 (SC ) . 3. I HEARD THE RIVAL SUBMISSION AND CAR EFULLY CONSIDER THE SAME. I NOTED THAT THE ADDITIONAL GROUND TAKEN BY THE ASSESSEE IS DULY COVERED BY THE DECISION OF THE HON'BLE SUPREME COURT IN TH E CASE OF GKN DRIVESHAFTS (INDIA) LTD. VS. ITO , (2003), 259 ITR 19 (SC) AND OTHERS IN WHICH THE HON'BLE SUP REME COURT HAS LAID DOWN THE PROCEDURE IN RESPECT OF THE PROCEEDING U/S.147 HAS BEEN INITIATED BY THE REVENUE. IN THIS DECISION THE HON'BLE SUPREME COURT HAS LAID DOWN AS UNDER: WE SEE NO JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER UNDER CHALLENGE. HOW EVER, WE CLARIFY THAT WHEN A NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT IS ISSUED, THE PROPER COURSE OF ACTION FOR THE NOTICEE IS TO FILE A RETURN AND IF HE SO DESIRES, TO SEEK REASONS FOR ISSUING NOTICES. THE ASSESSING OFFICER IS BOUND TO FURNISH REAS ONS WITHIN A REASONABLE TIME. ON RECEIPT OF REASONS, THE NOTICE IS ENTITLED TO FILE OBJECTIONS TO ISSUANCE OF NOTICE AND THE ASSESSING OFFICER IS BOUND TO DISPOSE OF THE SAME BY PASSING A SPEAKING ORDER. IN THE INSTANT CASE, AS THE REASONS HAVE BEEN DISCLO SED IN THESE PROCEEDINGS, THE ASSESSING OFFICER HAS TO DISPOSE OF THE OBJECTIONS, IF FILED, BY PASSING A SPEAKING ORDER, BEFORE PROCEEDING WITH THE ASSESSMENT IN RESPECT OF THE ABOVESAID FIVE ASSESSMENT YEARS. 3.1 IN VIEW OF THE DECISION OF HON'BLE SUPRE ME COURT , THE ASSESSEE IS BOUND TO FILE THE RETURN AS SOON AS HE RECEIVED THE NOTICE U/S.148 AND IN CASE HE SEEKS THE REASON TO BELIEVE , THE 3 ASSESSING OFFICER IS BOUND TO SUPPLY HIM THE COPY OF THE REASONS RECORDED THEREAFTER THE ASSESSEE IS FREE TO FILE T HE OBJECTION BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER IS BOUND TO DISPOSE OF THE OBJECTION BEFORE PROCEEDING FOR THE ASSESSMENT. I ACCORDINGLY SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE ASSESSING OFFICER TO SUPPLY THE COPY OF THE REASONS T O BELIEVE TO THE ASSESSEE AND ASSESSEE IF SO CHOOSES FILE THE OBJECTION BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER BEFORE PROCEED ING A FRESH ASSESSMENT MU ST DECIDE THE OBJECTION TAKEN BY THE ASSESSEE. 4. IN THE RESULT, THE APPEAL FILED BY THE AS SESSEE IS STATISTICALLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 / 9 / 2015 SD/ - ( P.K. BANSAL ) ACCOUNTANT MEMBER DATED: 2 / 9 /201 5 PRABHAT KUMAR KESARWANI, SR.P.S. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPE ALS) 5. DR: ITAT ASSISTANT REGISTRAR