ORDER
D.K. Srivastava, A.M.
1. Both the appeals filed by the assessee are directed against two separate orders of the learned CIT(A). The appeals relate to the asst. yrs. 1994-95 and 1995-96.
2. In both the appeals, ground No. 1 taken by the assessee reads as under :
1. Reassessment–Invalid
1.1 The learned CIT(A) failed to appreciate that the learned AO erred on facts and in the circumstances of the case and in law in passing the assessment order under Section 147 r/w Section 143(3) of the IT Act, 1961 (the Act) and the said order being bad in law is liable to be quashed.
1.2 The learned CIT(A) failed to appreciate that the learned AO erred in not recording his reasons for reassessment/reopening, prior to the issue of notice under Section 148 and, therefore, the order passed under Section 147 r/w Section 143(3) is bad in law and liable to be quashed.
1.3 The CIT(A) erred on facts and in law in holding “it is seen from the records that, the AO had recorded reasons for reopening the assessment which has also been mentioned in the assessment order for asst. yrs. 1994-95 and 1995-96.
3. At the time of hearing, it was pointed out by the learned Counsel for the assessee that the reasons recorded by the AO for issuing notice under Section 147/148 were not supplied to the assessee despite requests by him to the Departmental authorities. In this connection, he invited our attention to the order of the learned CIT(A) and submitted that even the learned CIT(A) has not given a copy of the reasons recorded for initiating the proceedings under Section 147/148, with the result that the assessee was deprived of the opportunity to know the reasons for initiation of reassessment proceedings as also to object to the initiation of the said proceedings.
4. In reply, the learned Departmental Representative supported the orders of the Departmental authorities.
5. We have considered the rival submissions. The assessee has challenged the validity of the initiation of reassessment proceedings under Section 147/148. It is fairly well settled that the reasons recorded by the AO under Section 147/148 should be communicated to the assessee and the assessee should be given an opportunity to state his objections to the initiation of the proceedings. We find that the issue was agitated before the learned CIT(A) upon which the learned CIT(A) obtained a remand report from the AO which is dt. 1st Aug., 2002. Perusal of the order of the learned CIT(A) does not show that a copy of the remand report was supplied to the assessee. Perusal of the orders passed by the Departmental authorities also do not show that the reasons required to be recorded by law for initiating proceedings under Section 147/148 were supplied to the assessee. We, therefore, consider it appropriate to set aside the order of the learned CIT(A) and restore the matter to his file with the direction to supply a copy of the reasons recorded by the AO for initiating the proceedings under Section 147/148 and also to give an opportunity of hearing to the assessee in this behalf. He shall thereafter pass a fresh order in accordance with law. Reasonable opportunity of hearing shall also be given to the assessee.
6. In view of the foregoing, both the appeals filed by the assessee are treated as allowed for statistical purposes.