Nestle India Ltd. vs Deputy Commissioner Of Income Tax
2004 Latest Caselaw 417 Del

Citation : 2004 Latest Caselaw 417 Del
Judgement Date : 23 April, 2004

Delhi High Court

Nestle India Ltd. vs Deputy Commissioner Of Income Tax on 23 April, 2004

Equivalent citations: (2004) 189 CTR Del 70

Author: B Patel

Bench: B Patel, B D Ahmed

JUDGMENT

B.C. PATEL, C.J.

1. The petitioner in this petition has prayed for directions under Articles 226/227 of the Constitution of India:

(i) for quashing the reasons communicated vide letter dt. 8th March, 2002 for assuming jurisdiction under Section 147 to reassess the income for the asst. yrs. 1993-94 and 1994-95.

(ii) for quashing notices dt. 29th March, 2001 issued under Section 148 of the IT Act, 1961, for asst. yrs. 1993-94 and 1994-95.

(iii) for restraining the respondent from taking any steps or proceedings in pursuance or furtherance to the notice dt. 29th March, 2001 issued under Section 148 for asst. yrs. 1993-94 and 1994-95.

2. In view of the decision of the apex Court in the case of GKN Driveshafts (India) Ltd. v. ITO and Ors. (2003) 259 ITR 19 (SC), this petition is required to be disposed of by giving directions hereinbelow. The apex Court in a similar situation pointed out that when a notice under Section 148 of the IT Act, 1961, is issued, the proper course of action for the noticee is to file the return and, if he so desires, to seek reasons for issuing the notices. The AO is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections for issuance of notice and the AO is bound to dispose of the same by passing a speaking order.

3. In the instant case, the reasons have already been supplied to the writ petitioner and, as conveyed to us, the return has also been filed by the assessed. Therefore, the assessed is required to prefer objections in view of the apex Court judgment and the AO is required to dispose of the same within a period of 30 days from the receipt of the objections. Interim relief already granted by this Court will continue till the objections are disposed of by a speaking order, as indicated by the apex Court.

4. The AO will issue a notice to the assessed within a period of 15 days calling upon the assessed to file objections within a period of four weeks, if he so desires.

The petition stands disposed of with the above directions.