This document presents a detailed analysis of the tribunal case ITA No. 4987/DEL/2019 where Vantage Integrated Security Solutions Pvt. Ltd., based in Noida, contested the assessment order for the Assessment Year 2009-10 issued by ACIT Circle-26(1), New Delhi.
The dispute arises from an assessment order dated 08.04.2019, against which the company appealed. The primary contention in this appeal was the legality of the reassessment proceedings initiated by the income tax department.
The appellant argued that the Assessing Officer failed to provide a speaking order on the objections raised against the reopening of the case, which is mandated by the Supreme Court’s decision in the case of GKN Driveshafts (India) Ltd. vs. ITO. Despite raising these objections, the CIT(A) upheld the assessment, stating that the prerequisites for a speaking order were met, referencing a decision that did not support this stance.
The Tribunal acknowledged the necessity of a speaking order to address the appellant’s objections comprehensively. It remanded the case back to the Assessing Officer with instructions to issue a speaking order, thereby providing the appellant an opportunity to contest the reassessment with a proper procedural basis.
The decision to remand the case highlights the importance of procedural compliance in assessment proceedings, ensuring that taxpayers have a fair opportunity to present their case. This case serves as a pertinent example of judicial oversight ensuring adherence to legal standards in tax assessments.
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