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TMI Blog2017 (5) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment produced by Sri Gaurav Mahajan have also been considered. The challenge in this petition is to the notice dated 31.3.2015 issued to the petitioner under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act) for the assessment year 2008-09 and to the order dated 4.2.2016 by which the objections of the petitioner against the said notice have been rejected. On the filing of this petition by an interim order dated 22.2.2016 further proceedings of reassessment were directed to be kept in abeyance and as such no order of reassessment till date has been passed by the Assessing Officer. It appears from the pleadings that the petitioner had filed return for the assessment year 2008-09 on 28.9.2008. The case wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aintainable as the petitioner has participated in the proceedings by filing objections against the notice issued under Section 148 of the Act. There is no dispute that on receipt of the notice under Section 148 of the Act the petitioner had filed objections and the same were dismissed. In GKN Driveshafts (India) Limited Vs. Income Tax Officer and others (2003) 1 SCC 72 it has been held that once a notice under Section 148 of the Act is issued to the assessee the proper course for him is to apply for the reasons behind issuing the said notice and to file objections thereof which shall be considered and decided by the Assessing Officer by a speaking order. Once the said procedure is exhausted the assessee can invoke the extra-ordinary writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 147 of the Act lays down that no action for reassessment under it shall be taken after the expiry of four years from the end of the relevant assessment year unless the assessee fails to disclose fully and truly all material facts necessary for assessment for that assessment year. In other words,the Assessing Officer is empowered to initiate proceedings for reassessment if he has reason to believe that some income has escaped assessment within a period of four years from the end of relevant assessment year and thereafter provided the assessee has failed to disclose fully and truly all material facts necessary for assessment. To put it differently and in a more simpler form formation of the opinion as to the existence of reason to belie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drawn after the expiry of four years. Therefore, in case of any action for reassessment after the expiry of four years, both the above two conditions are mandatory. Section 149 of the Act provides for the extended period of limitation and lays down that no notice under Section 148 of the Act shall be issued for reassessment on the expiry of four years from the end of the relevant assessment year but not more than six years after the expiry of the end of the relevant assessment year. It thus prescribes the outer limit of issuing notice under Section 148 of the Act to be six years from the end of the relevant assessment year. At the same time, Section 151 of the Act lays down that no notice under Section 148 of the Act shall be issued by As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the extent of TDS liable to be deducted. The said document is also part of the original record as produced by Sri Gaurav Mahajan, learned counsel for the respondent and is not disputed. Apart from the above, neither the aforesaid document nor any other document on record reveals any other reason for recording satisfaction for grant of permission for reassessment. There is no finding or reason that the petitioner has failed to disclose fully and truly all the relevant material facts necessary for proper assessment. In view of the above, the Assessing Officer on the basis of the material before him or for the reason that the petitioner had not deducted TDS on the lease rent during the financial year 2007-08, may have been satisfied that he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, in view of the proviso to Section 147 of the Act, no notice under Section 148 of the Act could have been issued to the petitioner as the second condition mentioned therein was not satisfied. The view taken by us aforesaid finds support by the Division Bench decision of this Court in the case of Commissioner of Income Tax-2 Kanpur Vs. Mirza International Limited (2015) 54 Taxman.com 217 (Allahabad). The Division Bench therein categorically held that as the revenue failed to make out a case that the assessee had failed to disclose fully and truly the material facts necessary for assessment, the reassessment proceedings started after the expiry of initial period are not maintainable and deserves to be set aside. Sri Garuav Mahajan has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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