TMI Blog2023 (6) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 - In light of the limitation expiring on 31.12.2018, the practical difficulties of the Assessing Officer could be of no reason to condone the non-adherence to the procedure in GKN Driveshafts [ 2002 (11) TMI 7 - SUPREME COURT] The effect of non-following such procedure has been dealt with by the judgment of the Division Bench of this Court in Deepak Extrusions [ 2017 (3) TMI 1257 - KARNATAKA HIGH COURT] wherein as rightly held that the mandatory procedure of disposal of objections by the Assessing Officer not having been followed, the order of assessment cannot be sustained. The contention of revenue relying on the judgment of Home Finders [ 2018 (5) TMI 260 - MADRAS HIGH COURT] cannot be accepted in light of the declaration in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, for the assessment year 2011-12; (v) quashing the notice dated 30.12.2018 (Annexure-M) bearing F. No. 271(1)(c)/DCIT [1] 3(1)(2)/2018-19 issued by the 1st Respondent under Sections 274 read with 271 of the Act. 2. The 2nd respondent had issued notice under Section 143(2) of the Income Tax Act, 1961 ('the Act') which was responded to by the petitioner and an order has been passed under Section 143(3) of the Act. Subsequently, petitioner has received a notice on 31.03.2018 under Section 148 of the Act by the 2nd respondent proposing to reassess the income of petitioner for the assessment year 2011-12. Petitioner has filed its response to the aforesaid notice objecting to the initiation of proceedings and the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t order under Section 143(3) read with Section 147 of the Act would not arise and that in light of such lapse, the legal consequence would lead to setting side of the reassessment order under Section 143(3) read with Section 147 of the Act. 5. While placing reliance on the order of the Division Bench of this Court in the case of Deepak Extrusions (P) Limited vs. Deputy Commissioner of Income Tax - (2017) 80 taxmann.com 77 (Karnataka), it is specifically asserted that non[1]compliance of procedure prescribed under GKN Driveshafts (supra) insofar as passing of order on the objections filed by the assessee and if the Assessing Officer proceeds to pass the reassessment order without passing such an order, then such an illegality is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd both sides. 9. It is not in dispute that the Apex Court in the case of GKN Driveshafts (supra) has laid down the procedure to be followed when a notice under Section 148 of the Act is issued. The procedure that is envisaged is as follows: We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under Section 148 of the Income tax Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer not having been followed, the order of assessment cannot be sustained. If that were to be so, the assessment order issued under Section 143(3) read with Section 147 requires to be set aside and the question of issuing notice under Section 148 would not arise. 12. The contention of the learned counsel for the revenue relying on the judgment of the Madras High Court in the case of Home Finders (supra) cannot be accepted in light of the declaration of the Division Bench of this Court in the case of Deepak Extrusions stating that the procedure prescribed in GKN Driveshafts (supra) is a mandatory procedure which would vitiate the assessment order and the same having been concurred with in another judgment of the Division Bench in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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