Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (8) TMI 269

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Assessing Officer by directing the Assessing Officer to pass a speaking order and to dispose of the objections raised by the petitioner against reopening of the assessment and/or against reasons recorded for reopening of the assessment and thereafter to communicate the outcome of the same to the petitioner and after giving reasonable time to the petitioner to challenge the same before higher Court / Forum, may proceed further with the assessment in respect of the assessment for which such notice has been issued. Impugned assessment order dated 20.03.2015 passed by the Assessing Officer is hereby quashed and set aside and the matter is remitted to the file of the Assessing Officer at the stage of submitting the objections by the petitioner against reopening of the assessment for the AY 2009-10. - Decided in favour of assessee by way of remand. - Special Civil Application No. 7813 of 2015 - - - Dated:- 7-5-2015 - M. R. Shah And S. H. Vora, JJ. For the Appellant : Mr Tej Shah, Adv. For the Respondent : Mr Nitin K Mehta, Adv. JUDGMENT (Per : Honourable Mr. Justice M. R. Shah) [1.0] RULE. Shri Nitin Mehta, learned advocate waives service of notice of Rule on .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f assessment itself, the Assessing Officer has passed the impugned assessment/reassessment order dated 20.03.2015. Hence, the petitioner has preferred the present Special Civil Application for the aforesaid reliefs. [4.0] Shri Tej Shah, learned advocate appearing on behalf of the petitioner has vehemently submitted that impugned assessment order under Section 143(3) read with Section 147 of the Act is absolutely illegal. It is submitted that in the present case the Assessing Officer earlier did not dispose of the objections raised by the petitioner, raised against the reopening of the assessment/reasons recorded for reopening of the assessment on 11.06.2014 and without deciding and disposing of the same earlier, the Assessing Officer had dealt with and disposed of the objections simultaneously while passing the assessment order / reassessment order and that too by passing a non-speaking order while deciding the objections raised. [4.1] It is submitted by Shri Shah, learned advocate appearing on behalf of the petitioner that as per the decision of the Hon'ble Supreme Court in the case of G.K.N. Driveshafts (India) Ltd. v. ITO reported in (2003) 259 ITR 19 and the decision .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... order of assessment dated 20.03.2015, there was sufficient time with the Assessing Officer to deal with and dispose of the objections i.e. approximately 9 months. That the Assessing Officer has dealt with and disposed of the objections raised by the petitioner, simultaneously while passing the impugned order of assessment dated 15.03.2015 and that too by passing a nonspeaking order. In the case of G.K.N. Driveshafts (India) Ltd. (Supra), the Hon'ble Supreme Court has laid down an elaborate procedure as to the manner of dealing with objections raised against the notice under Section 148 of the Act in the following words: ...However, we clarify that when a notice under section 148 of the Income-tax Act is issued, the proper course of action for the notice is to file a return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the notice is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. In the instance case, as the reasons have been disclosed in these proceedings, the Assessing Offic .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s under: 9. The position in law is thus well settled. After a notice for reassessment has been issued an assessee is required to file the return and seek reasons for issuance of such notice. The Assessing Officer is then bound to supply the reasons within a reasonable time. On receipt of reasons, the assessee is entitled to file preliminary objections to issuance of notice and the Assessing Officer is under a mandate to dispose of such preliminary objections by passing a speaking order, before proceeding with the assessment in respect of the assessment year for which such notice has been issued. [7.0] In view of the aforesaid binding decisions of the Hon'ble Supreme Court as well as Full Bench and Division Bench of this Court the impugned order of assessment cannot be sustained. As observed herein above though the detailed objections were raised against reopening of the assessment on 11.06.2014, the Assessing Officer did not disposed of the same till the assessment order came to be passed under Section 143(3) r/W Section 147 of the Act and has dealt with and disposed of the objections simultaneously while passing the assessment order and that too by a non-speaking order .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates