TaxTMI 
TaxTMI 
2017 (2) TMI 648
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....y way of this petition under Article 226 of the Constitution of India, the petitioner - assessee has prayed for an appropriate writ, direction and order quashing and setting aside the impugned notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as "Act") at AnnexureG and the reassessment order under Section 143(3) of the Act, which is at AnnexureT. [3.0] Facts leading to the present Special Civil Application in nutshell are as under: [3.1] That the petitioner assessee filed her return of income for AY 200910 on 30.09.2009. Subsequently, the scrutiny assessment under Section 143(3) of the Act was framed by the Assessing Officer on 14.12.2011. [3.2] That thereafter after a period of more than 4 years, the assessee....
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....62,21,537/came to be disallowed and resultantly the total income of the petitioner came to be assessed at Rs. 4,60,48,650/. Simultaneously, the respondent sent to the petitioner a demand notice dated 30.12.2016 for Rs. 2,99,93,940/. [3.3] Feeling aggrieved and dissatisfied with the impugned notice under Section 148 of the Act as well as reassessment order for AY 200910, the assessee has preferred the present Special Civil Application under Article 226 of the Constitution of India. [4.0] Having heard learned Counsel appearing on behalf of the respective parties it is not in dispute that before passing the reassessment order under Section 143(3) read with Section 147 of the Act, the Assessing Officer has not dealt with and disposed of the o....
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....s. Bhatt, learned Counsel appearing on behalf of the Revenue is not in a position to dispute that the objections raised by the petitioner on 24.11.2016, which are raised against reopening of the assessment, were not dealt with and disposed of by the Assessing Officer before passing the reassessment order. Therefore, she has requested to pass appropriate order to remand the matter to the Assessing Officer at the stage of the notice under Section 148 of the Act. [6.0] Heard learned Counsel appearing for respective parties at length. At the outset it is required to be noted that the impugned notice under section 148 of the Act to reopen the assessment for AY 200910 was issued by the Assessing Officer on 29.03.2016. That the assessee asked th....
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....e proceedings, the Assessing Officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment in respect of the abovesaid five assessment years." [6.1] In a subsequent decision in the case of Garden Finance Ltd. v. Asstt. CIT reported in (2004) 268 ITR 48 (Guj.) (FB), the effect of Supreme Court decision in the case of G.K.N. Driveshaft (India) Ltd. (Supra) came up for consideration and by a majority opinion it has been thus laid down by this Court as under: "What the Supreme Court has now done in the G.K.N. Case (2003)259 ITR 19 is not to whittle down the principle laid down by the Constitution Bench of the Apex Court in Calcutta Discount Co. Ltd. case (1961) 41 ITR 191 but to requir....
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....ter considering the decision of the Hon'ble Supreme Court in the case of G.K.N. Driveshafts (India) Ltd. (Supra) and the Garden Finance Ltd. (Supra) has observed and held as 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 su....