June 2022
Reassessment — Notice u/s 148:— (i) Duty of AO — Consideration of assessee’s objections to reopening of assessment is not mechanical ritual but quasi-judicial function — Order disposing of objections should deal with each objection and give proper reasons for conclusions — AO is bound to provide documents requested by assessee — Matter remanded to AO; (i) Recording of reasons — Reasons recorded furnished to assessee containing omission and was not actual reasons submitted to competent authority for approval — Matter remanded to AO with directions
By K. B. Bhujle
Advocate
18 Tata Capital Financial Services Ltd vs. ACIT [2022] 443 ITR 127 (Bom.) A.Y.: 2013-14 Date of order: 15th February, 2022 Ss. 147, 148 and 151(1) of ITA, 1961
Reassessment — Notice u/s 148:— (i) Duty of AO — Consideration of assessee’s objections to reopening of assessment is not mechanical ritual but quasi-judicial function — Order disposing of objections should deal with each objection and give proper reasons for conclusions — AO is bound to provide documents requested by assessee — Matter remanded to AO; (i) Recording of reasons — Reasons recorded furnished to assessee containing omission and was not actual reasons submitted to competent authority for approval — Matter remanded to AO with directionsThe assessee was a non-banking financial company. In compliance with clause 3(2) of the Reserve Bank of India Act, 1934, the assessee recognised the income from non-performing assets only when it was realized and did not offer it to tax on an accrual basis but on actual receipt basis. For the A.Y. 2013-14, the assessee received a notice u/s 148 of the Income-tax Act, 1961 stating that there were reasons to believe that income chargeable to tax for the assessment year had escaped assessment within the meaning of section 147. The assessee filed its objections. Thereafter, the assessee was furnished the reasons recorded for reopening the assessment. In its objections to the reopening, the assessee also requested th
