Disposed

Shree Shakuntala Industries v. Union of India and Ors.

Rajasthan HC25 Apr 2024CW/7428/2004

Case brief

AI extract

What is this about?

The High Court disposed of the writ petition challenging proceedings under Section 148 for AY 2002-03, noting that the petitioner's objections to the reasons for reopening had not been decided. Relying on GK Driveshafts, the Court directed respondents to decide the objections by passing a speaking order before proceeding further.

What did the court decide?

Direction to respondents to decide the petitioner's objections by passing a speaking order before proceeding with reassessment.

Shree Shakuntala Industries Vs Union of India and Ors. — Income Tax | Rajasthan HC (2024)

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[2024:RJ-JP:19373-DB]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

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D.B. Civil Writ Petition No. 7428/2004

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Shree Shakuntala Industries, Old Industrial Area, I.t.i. Road, Alwar Raj. Through Its Partner Anil

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----Petitioner

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Versus

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Union Of India Through Commissioner Of Income Tax, Alwar

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Assistant Commissioner Of Income Tax, Circle-1 Near Moti Doongri, Alwar

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Joint Commissioner Of Income Tax, Range-1, Near Moti Doongri, Alwar

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----Respondents

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For Petitioner(s)	: Mr. Anant Kasliwal, Senior Advocate assisted by Mr. Shashank Kasliwal Mr. Raghav Krishnatri Mr. Diwakar Khaldwa
For Respondent(s)	: Mr. N.S. Bhati & Mr. Aditya Khandelwal for Mr. AnuroopSinghi

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HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE BHUWAN GOYAL

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Order

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25/04/2024

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AVNEESH JHINGAN, J (ORAL):-

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This petition was filed challenging initiation of proceedings under Section 148 of the Act for AY 2002-03.

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The brief facts are that the petitioner-firm filed Income Tax Return for the relevant AY and claimed a refund of Rs.1,50,253/-.

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The return was processed under Section 143(1) of the Act. A notice bearing No.2841 dated 09.12.2003 was issued under Section 148 of the Act.

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[2024:RJ-JP:19373-DB]

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[CW-7428/2004]

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(2 of 3)

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The petitioner in response to the notice filed return declaring income of Rs.7,93,103/-. On 04.08.2004 the petitioner was supplied reasons for initiating reassessment. The petitioner filed objections.

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The grievance raised in the petition is that the objections filed by the petitioner have not been considered till date. Reliance is placed upon decision of the Hon’ble Supreme Court in GK and Driveshafts (India) Ltd. Vs. Income Tax Officer and Ors. 2003 to 59 ITR Page 19.

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The operational part of GK and Driveshafts is reproduced below:

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“ 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 notice 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 notice 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.

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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.

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7. With the above observations, the civil appeals are dismissed”

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[2024:RJ-JP:19373-DB]

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[CW-7428/2004]

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(3 of 3)

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In the present petition, the objections filed by the petitioner have not been decided.

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The respondents are directed to proceed in accordance with law laid down by the Hon’ble Supreme Court in the case of GK And Driveshafts (supra) and to decide the objections before proceeding with the notice under Section 148 of the Act.

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The petition is disposed of.

(BHUWAN GOYAL),J

(AVNEESH JHINGAN),J

Payal/Sudeepak/26

Reportable: Yes

Shree Shakuntala Industries v. Union of India and Ors.

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Shree Shakuntala Industries v. Union of India and Ors.

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