PUSHPA CHHAJER V. PRINCIPAL COMM. OF INCOME TAX-1

CW/5336/2020

AI Insights

The case involves Pushpa Chhajer, the petitioner, who challenged a notice issued by the Assistant and Deputy Commissioner of Income Tax under Section 148 of the Income Tax Act, 1961, alleging that her income for the assessment year 2015-16 had escaped assessment. The petitioner argued that she was not provided with the reasons for the notice despite her request, and thus the procedure was not followed as mandated by the Supreme Court in GKN Driveshafts (India) Ltd. Vs. Income-Tax Officer. The court agreed with the petitioner and directed the Assessing Officer to provide the reasons and allow her to file objections before passing any final order.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 750625 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 02-09-2020
• Assessment Year: misc
• Other Referred Cases: GKN Driveshafts (India) Ltd. Vs. Income-Tax Officer and Others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: SUNDEEP BHANDAWAT
• Keywords: Assessment Year 2015-16; Escape assessment; Income Tax; Notice; Section 147; Section 148; Reasons for Notice; GKN Driveshafts (India) Ltd. Vs. Income-Tax Officer
• Section: 147; 148

Judgement Text

"HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR S.B. Civil Writ Petition No. 5336/2020 Pushpa Chhajer W/o Mahendra Chhajer, Aged About 62 Years, Proprietor Of M/s Bhaval Export, Resident Of C-69, Shastri Nagar, Jodhpur, Rajasthan. ----Petitioner Versus 1. Principal Commissioner Of Income Tax-1, Income Tax Department, Paota C Road, Jodhpur 2. Assistant and Deputy Commissioner Of Income Tax ACIT/DCIT, Circle 1, Jodhpur ----Respondents For Petitioner(s) : Mr. Sundeep Bhandawat HON'BLE MR. JUSTICE VIJAY BISHNOI Judgment / Order 02/09/2020 This writ petition has been preferred on behalf of the petitioner being aggrieved with the notice dated 26.2.2020 (Annex.-5) issued by the respondent No.2 under Section 148 of the Income Tax Act, 1961 (for short ‘the Act of 1961’) for the assessment year 2015-16. In the above notice, the respondent No.2 has mentioned that it has reasons to believe that the petitioner’s income chargeable to tax for the assessment year 2015-16 has escaped asessment within the meaning of section 147 of the Act of 1961 and, therefore, the petitioner was asked to (2 of 3) [CW-5336/2020] deliver her return in the prescribed form for the said assessment year within thirty days. Learned counsel for the petitioner has submitted that after receiving of notice dated 26.2.2020, the petitioner vide letter dated 3.4.2020 (Annex.-6) asked for supply of reasons along with copy of sanction letter but the same have not been supplied to her till date and the respondent No.2 is proceeding against the petitioner under Section 148 of the Act of 1961 without giving any reasons for the same and the petitioner has every reason to believe that no reasons have been recorded by the respondent No.2 while issuing notice dated 26.2.2020 (Annex.-5). Learned counsel for the petitioner has submitted that the Hon’ble Supreme Court in the case of GKN Driveshafts (India) Ltd. Vs. Income-Tax Officer and Others, reported in 2003 (1) SCC 72 has specifically held that the Assessing Officer is bound to furnish reasons within a reasonable time and after 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. Learned counsel for the petitioner has argued that the respondent No.2 has not followed the due procedure and is bent upon to pass the final order under Section 148 of the Act of 1961 without giving proper opportunity of hearing to the petitioner. The Hon’ble Supreme Court in the case of GKN Driveshafts (India) Ltd. (supra) has held as under :- (3 of 3) [CW-5336/2020] “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 a 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 view of the above, this writ petition is disposed of with a direction to the Assessing Officer to supply the reasons to the petitioner pursuant to her representation dated 3.4.2020 (Annex.-6) within a period of one week from the date of receipt of certified copy of this order. On receipt of reasons, the petitioner may file her objections within a period of one week thereafter to issuance of notice dated 26.2.2020 and the Assessing Officer shall consider those objections and dispose of the same by passing a speaking order within a reasonable time. It is made clear that without following the above referred procedure the Assessing Officer shall not pass any final order pursuant to the notice dated 26.2.2020 (Annex.- 5). (VIJAY BISHNOI),J ms rathore "