2006 (9) TMI 173

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..... of the said notice. 2. Briefly, the facts, as pleaded in the petition, are that the petitioner is an income-tax assessee having his main source of income as rent from property known as SCO-49-50-51, Sector 17C, Chandigarh. The petitioner is the owner to the extent of half share in the said property. Besides this, the petitioner is also a partner in a firm, namely, M/s. Aggarwal Flour Mills, Karnal. For the assessment year 1979-80, the petitioner filed his return of income. While dealing with the same, the Assessing Officer allowed statutory deduction of 1/6th from the income from house property on account of repairs, as claimed by the petitioner. During the subsequent years, i.e., 1980-81, 1981-82 and 1982-83, similar statutory deduction h .....

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..... enge to the notice issued under section 148 of the Act is on the ground that no reasons have been recorded before issue of notice, which is statutory requirement. Further, it is pleaded that the petitioner has never failed or omitted to disclose the material facts fully or truly which are necessary for assessment of income chargeable to tax. Still further, it is pleaded that notice itself is beyond the statutory period prescribed under the Act for issue of notice, as in terms of the provisions, the same could be issued within a period of four years. Accordingly, notice dated June 2, 1987, for the assessment year 1979-80 is beyond the period of limitation. 5. In reply, the stand of the respondents is that the petitioner having not spent eve .....

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..... ng notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons have been disclosed in these 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." 8. The same view was followed by this court in Kapur Sons Steels P. Ltd. v. Asst. CIT [2004] 266 ITR 478 and Saraswati Industrial Syndicate Ltd. v. Union of India [2003] 185 CTR 587 (P&H) and the Gujarat High court in Arvin .....

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