GKN Driveshafts (India) Ltd. Vs. Income Tax Officer and Ors.
Email(Arising out of S.L.P. (C) No. 5520 of 2002)
Civil Appeal Nos. 7732, 7733-34, 7735-36 & 7737 of 2002
(Arising out of S.L.P. (C) Nos. 5522, 5524-25, 5527, 5529 & 5531 of 2002)
(From the Judgment and Order dated 31.01.2002 of the Delhi High Court in C.W. No. 730 of 2002)
(Arising out of S.L.P. (C) No. 5520 of 2002)
Civil Appeal Nos. 7732, 7733-34, 7735-36 & 7737 of 2002
(Arising out of S.L.P. (C) Nos. 5522, 5524-25, 5527, 5529 & 5531 of 2002)
(From the Judgment and Order dated 31.01.2002 of the Delhi High Court in C.W. No. 730 of 2002)
Mr. Ranbir Chandra, Ms. Neera Gupta, Mr. Rajiv Tyagi & Mr. B.V. Balaram Das, Advocates for the Respondents.
Income-tax Act, 1961
Sections 143(2) and 148 – Reassessment – Proper procedure – Assessee filing writ challenging the notices under sections 148 and 143(2) – High Court dismissing the writ as being premature – Validity – Dismissing the appeal, held that where the assessee replies to the notices objecting the proposed action the assessing officer has to dispose of the objections by passing a speaking order before proceeding with the assessment. (Para 5)
1. Heard learned counsel for the parties
2. Leave is granted.
3. By the order under challenge, a division bench of the High Court at Delhi dismissed the writ petition filed by the appellant challenging the validity of notices issued under sections 148 and 143(2) of the Income Tax Act, 1961. The High Court took the view that the appellant could have taken all the objections in its reply to the notices and that, at that stage, the writ petition was premature. Accordingly, the writ petition was dismissed on 31st January, 2001. Aggrieved by that order, the appellant is in appeal before us.
4. Mr. M.L. Verma, learned senior counsel appealing for the appellant, submits that the impugned notices relate to seven assessment years; that during the pendency of these appeals, in respect of two assessment years, viz., 1995-96 and 1996-97, assessment has been completed against which appeals have been filed. Notices relating to the other five assessment years, viz., 1992-93, 1993-94, 1994-95, 1997-98 and 1998-99, are now the subject matter of these appeals.
5. 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 the same by passing a speaking order. In then 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.
6. Insofar as the appeals filed against the order of assessment before the commissioner (appeals), we direct the appellate authority to dispose of the same, expeditiously.
7. With the above observations, the civil appeals are dismissed.
8. No costs.
