TMI Blog2021 (5) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... to the AO. The AO shall take into consideration the objections raised by the assessee and pass a fresh speaking order in accordance with law. - R/Special Civil Application No. 22188 of 2019 - - - Dated:- 11-5-2021 - Honourable Mr. Justice J.B.Pardiwala And Honourable Mr. Justice Ilesh J. Vora For the Petitioner(s) : Mr Omkar C Dave For the Respondent(s) : Mrs Kalpanak Raval ORAL ORDER (PER : HONOURABLE MR. JUSTICE ILESH J. VORA) 1. By filing this petition under Article 226 of the Constitution of India, the writ applicant being an Individual Assessee has challenged the Notice dated 30.03.2019 issued under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act for short), in respect of Assessment Year 2012-13 by the Assessing Officer, on the ground that same is illegal, without jurisdiction, as prescribed under the Act. 2. Briefly stated the facts of the case are that the writ applicant being an Individual Assessee filed his return of income on 29.06.2012, declaring the total income at ₹ 4,16,300/-. On 12.03.2015, the assessment was framed under Section 143(3) of the Act. During the assessment proceedings various details w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Further, assessee has not shown its true income for the year. 5 6 : Findings of AO Basis of forming reason to believe and details of escapement of income:- In this case, specific information was received from investigation wing, Surat that assessee had credit entries to the tune of ₹ 48,18,90,367/- in his bank account. Further, summons was also issued to the assessee to ascertain genuineness of the said credit entries. However, the assessee failed to make compliance of the summons. The non-compliance of the summons on the part of the assessee clearly indicates that the assessee has no plausible explanation with regard to such huge entries in his bank account and therefore these credit entries are unexplained. On careful perusal of the return of income filed by the assessee for A.Y. 2012-13, it is noticed that the credit entries in bank account to the tune of ₹ 48,18,90,367/- has not been offered. Further, assessee has not submitted the explanation regarding above mentioned credits before authority even though ample opportunity given. It can be inferred from this that the credit entries in the said account is to the tune of ₹ 48,18,90,367/- a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Advocate has raised various contentions as mentioned in the petition. Referring to the reasons recorded and order disposing the objections raised by the writ applicant, it was contended that the AO had mechanically disposed of the preliminary objections. Relying on the decision of GKN Driveshafts (India) Ltd , (2003) 259 ITR 19 , it was submitted that the AO should have dealt with each objection and should have assigned cogent reasons for its conclusion, by passing a speaking order. In this context, it was submitted that in the case on hand, although various objections were raised against the impugned notice, yet the AO failed to take note of the objections and mechanically disposed of the same without assigning the reasons on the issues. Therefore, it was submitted that the impugned notice as well as the order disposing the objections are required to be set aside. 8. Mr. Sunit Shah, the learned Senior counsel relying upon the case of SABH Infrastructure Ltd Vs. ACIT , (2018) 99 Taxmann.com 409 (Delhi), further contended that there is a clear violation of the directions issued by the Delhi High Court. It was submitted that at the time of providing the reasons recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ff the preliminary objections filed by the writ applicant against the reasons recorded for reassessment, has not properly dealt with the objections. In the case of GKN Driveshaft (supra), the Supreme Court has laid down the procedure as to the manner of dealing with the objections raised against the notice under Section 148 of the Act. The Supreme Court has held that when a notice under Section 148 of the Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notice. It was further held that the AO is bound to furnish reasons within a reasonable time and upon receipt of reasons, the noticee is entitled to file an objection to issuance of notice and AO is bound to dispose of the same by speaking order. In the case of SABH Infrastructure Ltd (supra), the Delhi High Court, has held that the exercise of considering the assessee s objections to the reopening of the assessment is not a mechanical ritual. It is a quasi judicial function. The order disposing of the objection should deal with each objection and give proper reason for conclusion. The order should reflect proper application of mind. 13. Applying the di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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