Madras High Court
Pandiyan Paper Company vs The Income Tax Officer on 18 August, 2021
W.P.No.17262 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 18.08.2021
CORAM
THE HONOURABLE DR. JUSTICE ANITA SUMANTH
W.P.No.17262 of 2021
and WMP Nos.18277 ad 18280 of 2021
Pandiyan Paper Company
Old No.132-A, New No.298,
1st Agraharam, Salem – 636 001
rep. by its Partner
…Petitioner
Vs
The Income Tax Officer,
Ward – 1 (1),
Income Tax Office,
No.3, Gandhi Road, Salem – 636 007.
… Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying for the issuance of Writ of Certiorari calling for the records of the
respondent dated 30.03.2021 in DIN:ITBA/AST/S/148/2020-21/1031908779
(1) issued under sec.148 of the Income Tax Act for the assessment year 2014-
15 in PAN: AAGFP4598J and quash the same.
For Petitioner : Mr.T.Vasudevan
For Respondent : Mr.ANR.Jayaprathap
Junior Standing Counsel
1/4
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W.P.No.17262 of 2021
ORDER
Heard Mr.T.Vasudevan, learned counsel for the petitioner and
Mr.ANR.Jayaprathap, learned Junior Standing Counsel who accepts notice for
the respondent and is armed with instructions to proceed with the matter
finally.
2. The petitioner assails a notice issued under Section 148 of the Income
Tax Act, 1961 (in short 'Act') dated 30.03.2021 on the ground that the
condition precedent for re-opening of an assessment under Section 147 of the
Act is not satisfied in the present case.
3. Learned counsel for the petitioner draws my attention to the fact that
an order of assessment under Section 143(3) had been passed at the original
instance and thus the proviso to Section 147 would stand attracted and would
have to be satisfied. The proviso casts responsibility upon the Department to
establish that the escapement of income alleged has been occasioned by virtue
of the assessee not having made a full and true disclosure of its taxable income
in its return of income/in the course of original assessment.
4. He also draws my attention to the reasons recorded, communicated on
09.07.2021, wherein, in both the points cited as being the basis for the
impugned re-assessment, reference is made to verification of the records of
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W.P.No.17262 of 2021
assessment including Form 3CD of the audit report. Thus, and prima facie, the
documents relied upon in support of proceedings for re-assessment are very
much part of the records. According to the petitioner, there is no other, let
alone tangible material, that has been discerned to justify the impugned
proceedings.
5. However, as the petitioner has, and rightly, filed an objection to the
assumption of jurisdiction before the Assessing Authority and orders are
awaited in regard to the same, it would be appropriate that the procedure for re-
assessments, as set out by the Hon'ble Supreme Court in the case of GKN Drive
Shafts V. ITO (259 ITR 19) is complied with.
6. In conclusion of the judgment, the Bench states 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 the same by passing a speaking order’.
7. Since the impugned proceedings are yet to culminate in a speaking
order on the aspect of jurisdiction, I am of the view that this Writ Petition is
pre-mature and that the petitioner should await passing of the speaking order.
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W.P.No.17262 of 2021
Let the respondent hear the petitioner and pass orders on the objections
dated
Dr.ANITA SUMANTH,J.
12.07.2021 within a period of four (4) weeks from today. Assessment, if any,
will be taken up subject to conclusion on the aspect of jurisdiction.
7. This Writ Petition is dismissed. No costs. Connected Miscellaneous
Petitions are also dismissed.
18.08.2021
Index : Yes/No
Speaking Order/Non speaking Order
sl
To
The Income Tax Officer,
Ward – 1 (1),
Income Tax Office,
No.3, Gandhi Road, Salem – 636 007.
W.P.No.17262 of 2021
and WMP Nos.18277 ad 18280 of 2021
http://www.judis.nic.in
