TMI Blog2021 (7) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... ermitted to proceed with the assessment/re-assessment. This being the factum established, the petitioner is directed to submit his further objections along with the materials, documents, etc., to the respondent within a period of two weeks from the date of receipt of a copy of this order. On receipt of any such objections from the writ petitioner, the respondent shall consider the same along with the process of assessment/re-assessment by providing an opportunity to the writ petitioner. - W.P.No.33438 of 2019 and W.M.P.Nos.33904, 33913 & 33915 of 2019 and W.M.P.No.11822 of 2021 & W.P.No.33449 of 2019 and W.M.P.Nos.33920, 33922 & 33924 of 2019 and W.M.P.No.11825 of 2021 - - - Dated:- 2-7-2021 - THE HONOURABLE MR. JUSTICE S. M. SUBRAMANIAM For the Petitioner : Mr. Suhrith Parthasarathy For the Respondent : Ms. Hema Murali Krishnan ( Senior Standing Counsel for Income Tax ) ORDER The Writ Petitions on hand are filed challenging the notice issues under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as, 'the Act') and the order dated 07.11.2019, disposing of the objections filed by the writ petitioner, regarding the reopening of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ger (Operations), Apollo Hospital, recorded on 5th January 2016 (copy enclosed). The details of your fee structure too have been obtained similarly. These are as follows, Fee per First Visit/New Patient-₹ 700/- Fee per old patient/Follow up-₹ 700/- From the above details it would become clear that your income from consultation fees from your Apollo Hospital Practice would be ₹ 20,20,900/-. However, after going through your return of income for the relevant assessment year, it is observed that the income returned on this count is substantially less. You are required to show cause as to why your income from consultation fees from your Apollo Hospital Practice as quantified above should not be brought to tax in your hands. Your reply should reach the undersigned within fifteen days from the date of receipt of this show cause notice. 3.The learned counsel for the petitioner has stated that the said show cause notice indicates the statement of Ms.Subhadra G., Manager (Operations), Apollo Hospital, recorded on 5th January 2016 (copy enclosed). However, there was no enclosure communicated along with the show cause notice to the writ petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GKN Drive shafts India Ltd., Vs. ITO reported in 259 ITR 19 (SC) as well as the provisions of the Income Tax Act for reopening of assessment. Thus, if at all any objections are to be filed, still it is left open to the petitioner to submit the same and what is under challenge in these Writ Petitions is only reopening of assessment and the assessment order is yet to be passed. Thus, the petitioner, even at this stage, has got ample opportunity to submit his objections with reference to the findings of the order passed by the Commissioner, Income Tax (Appeals) as well as with reference to the statement of said Ms.Subhadra G., Manager (Operations), Apollo Hospital. Contrarily, if the order impugned is quashed, it will pave way for the litigants to create further litigations unnecessarily and the opportunity for submitting further objections are still open and further, no prejudice would be caused, in the event of filing any such objection at this stage. 7.The learned Senior Standing Counsel reiterated that the Assessing Officer has reason to believe that the income chargeable to tax escaped assessment. Consequent to the search operations in Apollo Hospitals, various informations an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his objections for the reasons and the said objections were also disposed of. Thus, the directives of the Hon'ble Apex Court in the case of GKN Drive shafts India Ltd., Vs. ITO (cited supra) was also followed by the respondent-Assessing Officer. 11.The petitioner had requested for further details and he has submitted his objections to the reasons. With reference to the said reply, show cause notice was also issued to the petitioner in respect of the Assessment Years 2011-12, 2012-13 and 2013-14. However, the statement of Ms.Subhadra G., was subsequently handed over to the representative of the petitioner and the same was acknowledged. 12.The objections submitted were disposed of by the competent authority on 07.11.2019 and the concluding findings of the Assessing Officer regarding the objections in the said orders read as under: Assessment Year 2015-16: 8.The assessee objected that merely relying on hospital records which indicate number of patients 'who visited' is incorrect. The Assessing officer has not arrived at the income escaping assessment relating to the A.Y.2015-16, merely based on the number of patients mentioned against the Col. 'w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made clear to the assessee by the respondent. The objections submitted by the assessee was also considered by the respondent and a speaking order was passed. While disposing of the objections, the Assessing Officer has categorically stated that he has reason to believe that the income chargeable to tax escaped assessment. The findings extracted in the aforementioned paragraphs would reveal that the reasons for reopening is candid and convincing. Thus, there is no reason, what so ever, for interfering with the initiation of reopening proceedings under Section 147 of the Act. 14.Let us now consider the request made by the petitioner to remand the matter back to the Assessing Officer for fresh disposal of the objections by providing an opportunity to the petitioner to submit additional objections, based on the statement of Ms.Subhadra G., Manager (Operations), Apollo Hospital and the order passed by the Commissioner of Income Tax (Appeals). 15.What is under challenge in the present Writ Petitions is the initiation of reopening proceedings under Section 147 of the Act. Chapter XIV of the Income Tax Act provides procedures to be followed. If the Assessing Officer has reason to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings and providing an opportunity to submit further objections, it would cause prejudice to the revenue. Contrarily, the petitioner may be permitted to submit all his further objections based on the statement of Ms.Subhadra G., Manager (Operations), Apollo Hospital, enabling the Assessment Officer to consider the same and accordingly, proceed with the assessment/reassessment, based on the reopening of assessment proceedings. Thus, instead of quashing the entire proceedings, as prayed for in the present Writ Petitions, it is suffice if an opportunity is provided to the writ petitioner to submit additional objections, if any, based on the materials relied on by the assessee to the Assessing Officer, withing a stipulated period and on receipt of the same, the Assessing Officer shall be permitted to proceed with the assessment/re-assessment. This being the factum established, the petitioner is directed to submit his further objections along with the materials, documents, etc., to the respondent within a period of two weeks from the date of receipt of a copy of this order. On receipt of any such objections from the writ petitioner, the respondent shall consider the same along with th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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