TMI Blog2007 (9) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... ide. - 120 to 135 of 2004 and others - - - Dated:- 17-9-2007 - L. SOHANARAJ AND OTHERS Versus DEPUTY COMMISSIONER OF INCOME-TAX ( I. T. A. Nos. 120 to 135 of 2004) COMMISSIONER OF INCOME-TAX AND ANOTHER Versus NEMICHAND (and other appeals) ( I. T. A. Nos. 549, 550, 559 and 561 of 2001; 90 to 98 of 2003) V. GOPALA GOWDA and ARALI NAGARAJ JJ. Income-tax Appeal Nos. 120 to 135 of 2004; 549, 550, 559, 561 of 2001 and 90 to 98 of 2003. A. Shankar, Madhusudan K Naik.and M. Lava for the assessee. M. V. Seshachala and K. V. Aravind for the Department. JUDGMENT 1. These appeals are filed both by the assessees and the Revenue questioning the correctness of the impugned common judgment date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer, partly affirmed by the first appellate authority and the Appellate Tribunal are legal and valid, without complying with the statutory provisions of notices to be sewed upon the assessees and give opportunity to file their objections consider the same and pass speaking order as required under section 148(2) and the decisions of the apex court in the case of GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19." 4. After hearing these matters at length, we have gone through the records produced by the parties and the provisions of sections 132, 140, 147,148 particularly sub-section (2) of section 148 of the Income-tax Act. The Tribunal, keeping in view the decisions of the Supreme Court in the case of GKN Driveshafts (Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals on behalf of the Revenue that no reasons require to be communicated to the assessee to facilitate him to file statement of objections to consider the same and pass a speaking order by the Assessing Officer. Further, he has sought to distinguish the two Division Bench judgments of the Bombay and Delhi High Courts and contended that search and seizure was conducted in the business premises of the assessees and concluded in the year 1993, and thereafter block assessment orders are passed after giving opportunity to the assessees in compliance with the provisions of the Income-tax Act. Therefore, he submits that the substantial questions have to be answered in favour of the Revenue and against the assessees and prayed for dismissal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the parties, our attention was invited to the decision of the Supreme Court in the case of GKN Driveshafts (India) Ltd. [2003] 259 ITR 19. After careful reading of the same and other judgments of the other High Courts upon which strong reliance is placed by learned counsel on behalf of the assessees and on careful examination of sections 140, 142, 147, 148, 148(2), we thought it fit to answer the substantial question No. (iii) and accordingly we proceed to answer the same by recording the following reasons. 8. The Supreme Court in the case of GKN Driveshafts ( India ) Ltd. [2003] 259 ITR 19, has made certain observations, which read thus (page 20): "We see no justifiable reason to interfere with the order under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also after referring to the apex court decision referred to supra, taken the similar view. 11. In the instant case, it is an undisputed fact that under section 148(2) notice containing reasons was not served upon the assessee despite request was made in this regard. It is an undisputed fact that the Assistant Commissioner of Income-tax in his letter dated August 7, 1985, addressed to one of the assessees, namely, S. Bharathraj. The relevant portion of the same reads thus: "You have requested for copy of the reasons recorded for reopening of the proceedings. In this regard you are informed that there are plethora of decisions of High Court and also the Supreme Court to the said effect that the assessee is not entitled to a copy of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue. However the parties are at liberty to urge all legal contentions before the Assessing Officer, who is at liberty to consider the same and pass orders in accordance with law. 15. Now, it is stated at the Bar that the notice containing reasons would be furnished to the assessees. It is open for the assessees to file their objections within two weeks from the date of service of notices upon them. Thereafter, the Assessing Officer shall conclude the proceedings within three months by taking the matter on day-to-day basis. If, either of the party challenge the order of the Assessing Officer, the appellate authority and the Tribunal should expeditiously dispose of those matters, keeping in view this is pending for over 14 years. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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