TMI Blog2008 (7) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... er : Mr S.R. Wadhwa For the Respondents : Mr Sanjeev Sabharwal JUDGEMENT BADAR DURREZ AHMED, J (ORAL) 1. This writ petition is directed against the notice dated 26.03.2007 issued by the Assessing Officer, Ward No. 5(2), New Delhi under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as "he said Act"). The challenge is also to the consequential assessment under Section 143 (3) of the said Act read with Section 147 made on 28.12.2007 whereby the assessee's income has been computed at Rs 2,05,11,086/- as against a returned income of Rs 4,086/-. On the basis of the said assessment, a demand on account of income tax and interest under Section 234B amounting to Rs 1,51,38,235/- has been raised. The petitioner st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... othing further was required to be done by the Assessing Officer. Furthermore, it was submitted that the petitioner has, in fact, not taken any objections and, therefore, there is no question of passing a speaking order. 5. This case pertains to the assessment year 2000-2001. The return for the said assessment year was filed on 21.11.2000 showing an income of Rs 4,086/- being the petitioner's first year of business having been incorporated on 01.09.1999 as a public limited company. The return was accepted under Section 143(1)(a) of the said Act. Thereafter, on 26.03.2007, the impugned notice under Section 148 was issued by the Assessing Officer, Ward No.5(2), New Delhi. By a letter dated 10.04.2007, the assessee requested the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the backdrop of these facts, it would be necessary to examine the decisions cited on behalf of the parties. In GKN Driveshafts (supra), the Supreme Court indicated the procedure to be followed when a notice under Section 148 of the said Act is issued. The Supreme Court indicated that the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuance of the notice. The Assessing Officer is then bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to the issuance of the notice and the Assessing Officer is bound to dispose of the same by passing a speaking order before proceeding with the assessment. 8. In the present case, what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court as well as this Court, the Assessing Officer did not comply with the requirement of law. 6. Learned Counsel for the respondent submits that the objections touched upon the merits of the controversy and the failure of the Assessing Officer to deal with the objections before passing the assessment order was only a technical error. We are mentioning this only to reject this argument in view of the clear language of the Supreme Court. The Assessing Officer cannot try to hide behind niceties, which are not even legal. 7. Under the circumstances, we set aside the assessment order dated January 31, 2005, and direct the Assessing Officer to deal with the objections dated October 19, 2004, filed by the petitioner within a p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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