9911796707
TMI Blog2008 (7) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 states that because of the said assessment order, it was compelled to file an appeal before the Commissioner of Income Tax (Appeals) and the said appeal is pending. The stay that was prayed for by the petitioner before the appellate authority was rejected. 2. The learned counsel for the petitioner submitted that the main ground for challenging the issuance of the notice dated 26.03.2007 and the consequential assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Officer that the original return filed on 21.11.2000 be treated as the return filed under protest in response to the said notice. The assessee also requested that the reasons recorded for the purpose of issuance of the notice under Section 148 of the said Act be provided to the assessee to enable it to prepare the necessary submissions in respect of the proceedings. Thereafter, by a letter dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eek 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 has happened is that the purported reasons have been supplied by the Assessing Officer to the assessee, but the Assessing Officer has not responded to the assessee's request for further information. As such, the letter dated 17.09.2007 can only be regarded as a part objection and part request for further information. The proper course for the Assessing Officer, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly 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 period of eight weeks from today. Needless to say, the Assessing Officer should pass a speaking order. 8. For not following the law laid down by the Supreme Court and stressed by this Court, we impose costs upon the respondent of a sum of Rs. 3,500 to be paid to the petitioner. The costs be paid within a period of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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