AO can continue proceedings even if reason supplied by him while rejecting objections not acceptable to assessee: HC

Short Overview of the case:

Where Assessing Officer dealt with objections filed by assessee against reopening notice issued against it in accordance with law and rejected same, even though reasons for rejection of objections might not be acceptable to assessee, it had to proceed with reassessment proceedings

The case relates to Section 148, read with section 147 of the Income-tax Act, 1961

The issue was with regard to Income escaping assessment

 Assessee filed its return of income which was selected for scrutiny and an assessment order was passed

Subsequently, a reopening notice was issued against assessee on ground that details with regard to issue of shares and details of expenditure relating to issue of shares were not provided during original assessment

Assessee filed objections against said reopening notice

Same were dealt with in accordance with law and rejected by Assessing Officer

On the issue as to whether even though such reasons for rejection of objections might not be acceptable to assessee, it had to proceed with impugned reassessment proceedings, it was held as yes