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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
MR. JUSTICE AVNEESH JHINGAN, MR. JUSTICE PRAMIL KUMAR MATHUR, JJ
Sandeep Stocks Pvt. Ltd. – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
Order :
AVNEESH JHINGAN, J.
1. This petition is filed seeking quashing of notice dated 27.09.2016 issued under Section 148 of the Income Tax Act, 1961 (for short ‘the Act’).
2. Brief facts are that the petitioner filed returns for the Assessment Year 2011-12 declaring total income of Rs.15,43,31,590/-. The proceedings under Section 148 of the Act were initiated by issuance of impugned notice. The objections filed by petitioner on 02.02.2017 were disposed of vide order dated 17.02.2017.
3. The grievance raised is that petitioner demanded the material relied upon by the department but neither the needful was done nor this objection was dealt.
4. In the case of Gkn Driveshafts (India) Ltd. vs. Income Tax Officer And Ors. reported in 259 ITR Page 19, the Supreme Court held that the assessee after filing the return in pursuance to the notice issued under Section 148 of the Act shall be supplied reasons for re-opening to which objections could be filed. The Assessing Officer was obligated to decide the objections by passing a reasoned order.
5. The Division Bench of this Court in the case of Micro Marbles Pvt. Limited Vs. Office of Income Tax Officer reported in (2023) 457 ITR 569 held that t
The failure to supply reasons and material for reopening an assessment under the Income Tax Act violates procedural fairness, necessitating quashing of the notice.
The Assessing Officer must address objections to a notice under Section 148 of the Income Tax Act before proceeding with the assessment, as established by the Supreme Court.
The assessing officer must address objections raised by taxpayers in a speaking order when issuing notices under Section 148 of the Income Tax Act.
The challenge to a notice and order for reopening of assessment is maintainable when there is no statutory remedy available under the Act. Non-supply of material forming the basis for reopening the a....
The Assessing Officer is mandated to dispose of objections to reassessment notices by a speaking order before proceeding with the assessment.
Re-assessment under the Income-tax Act cannot be initiated after four years without specific allegations of failure to disclose material facts necessary for assessment.
Reopening of assessment under Section 148 requires valid reasons; mere incorrect information cannot justify such action.
Reopening of assessment under Section 148 is valid based on audit objections if the taxpayer fails to provide timely responses or necessary documentation.
An assessment order is invalid if objections raised by the taxpayer are not addressed prior to its issuance, ensuring due process in tax assessments.
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