Shree Shakuntala Industries V. Union Of India Through Commissioner Of Income Tax, Alwar and Assistant Commissioner Of Income Tax, Circle-1 Near Moti Doongri, Alwar and Joint Commissioner Of Income Tax, Range-1, Near Moti Doongri, Alwar

CW/7428/2004

AI Insights

The case involves Shree Shakuntala Industries, which filed a petition challenging the initiation of proceedings under Section 148 of the Income Tax Act for the assessment year 2002-03. The petitioner had initially filed an income tax return claiming a refund, which was processed under Section 143(1). Subsequently, a notice under Section 148 was issued, and upon response, the petitioner was provided reasons for reassessment, to which they filed objections. The core issue was the non-consideration of these objections by the respondents. The court referenced a Supreme Court decision emphasizing the need for a speaking order on such objections before proceeding with the assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800977 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 25-04-2024
• Assessment Year: misc
• Other Referred Cases: GK and Driveshafts (India) Ltd. Vs. Income Tax Officer and Ors.
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N S BHATI; ADITYA KHANDELWAL
• Assessee Lawyers: ANANT KASLIWAL; SHASHANK KASLIWAL; RAGHAV KRISHNATRI; DIWAKAR KHALDWA
• Keywords: Income Tax Return; Objections; Reassessment; Speaking order
• Section: 148; 143(1)

Judgement Text

"[2024:RJ-JP:19373-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 7428/2004 Shree Shakuntala Industries, Old Industrial Area, I.t.i. Road, Alwar Raj. Through Its Partner Anil ----Petitioner Versus 1. Union Of India Through Commissioner Of Income Tax, Alwar 2. Assistant Commissioner Of Income Tax, Circle-1 Near Moti Doongri, Alwar 3. Joint Commissioner Of Income Tax, Range-1, Near Moti Doongri, Alwar ----Respondents 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. Anuroop Singhi HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE BHUWAN GOYAL Order 25/04/2024 AVNEESH JHINGAN, J (ORAL):- 1. This petition was filed challenging initiation of proceedings under Section 148 of the Act for AY 2002-03. 2. 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/-. 3. 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. [2024:RJ-JP:19373-DB] (2 of 3) [CW-7428/2004] 4. 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. 5. 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. 6. The operational part of GK and Driveshafts is reproduced below: “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. 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. 7. With the above observations, the civil appeals are dismissed” [2024:RJ-JP:19373-DB] (3 of 3) [CW-7428/2004] 7. In the present petition, the objections filed by the petitioner have not been decided. 8. 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. 9. The petition is disposed of. (BHUWAN GOYAL),J (AVNEESH JHINGAN),J Payal/Sudeepak/26 Reportable: Yes "