Suryalakshmi Cotton Mills Ltd. V. Assistant Commissioner of Income Tax Circle 3(1) and 2 Others

WP/29362/2021

AI Insights

In this writ petition, Suryalakshmi Cotton Mills Ltd. challenged the notice issued by the Assistant Commissioner of Income Tax under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2016-17. The petitioner contended that the reasons for reopening the assessment were not provided initially, which was against the Supreme Court's decision in GKN Driveshafts (India) Ltd. vs. Income Tax Officer. The court had earlier directed the respondents to furnish the reasons for reopening the assessment, which were provided on 09.12.2021. The court then allowed the petitioner to file objections to these reasons and directed the Assessing Officer to pass a reasoned order after considering the objections.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 691819 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 22-12-2021
• Assessment Year: misc
• Other Referred Cases: GKN Driveshafts (India) Ltd. vs. Income Tax Officer
• Laws Referred To: Income Tax Act, 1961, Article 226 of the Constitution of India, Section 151 CPC
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A KRISHNA; NAMAVARAPU RAO
• Assessee Lawyers: C V NARASIMHAM
• Keywords: GKN Driveshafts (India) Ltd. Vs. Income-Tax Officer; Income Tax; Reopening of assessment; Writ of Mandamus
• Section: 147; 148

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAO (Special Original Jurisdiction) WEDNESDAY, THE TWENTY SECOND DAY OF DECEMBER TWO THOUSAND AND TWENTY ONE PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND THE HONOURABLE SMT JUSTICE P.MADHAVI DEVI WRIT PETITION NO: 29362 OF 2021 Between: Suryalakshmi Cotton Mills Ltd., Registered office at Surya Towers, 6th floor 105 Sardar Patel Road, Secunderabad - 500003 Rep. by its Authorised Signatory Pan No.AAECS1921R ..PETITIONER AND 1 Assistant Commissioner of lncome Tax Circle 3(1), Hyderabad, Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 Assistant Commissioner of lncome Tax Circle 3(2), Hyderabad, Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 Union of lndia, Rep. by its Secretary, Department of Revenue. Ministry of Finance, North Block New Delhi - 110 001 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Writ Order or Direction more particularly in the nature of Writ of Mandamus declaring the inaction of the 1St respondent in providing the reasons for reopening the assessment u/s.148 and failure to give an opportunity to assesses to file objections to the reasons for reopening and failing to comply with the law declared by the Hon'ble Supreme Court in GKN Driveshafts (lndia) Ltd. vs. lncome Tax Officer, reported in (2003) 259 ITR 19 (SC) as being without jurisdiction, without authority of law, contrary to provisions of lncome Tax Act, arbitrary and illegal. Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the 1st respondent to furnish the reasons for reopening assessment under section 147 r.w.s. 148 of the Act and direct the 1st respondent to give an opportunity to assesses to file objections. lA NO: 1 OF 2021 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay the impugned Notice No.lTBA/AST/S/148/2020-21/1031962780(1) dated 30/03/2021 2 3 lA NO: 2 OF 2021 issued by the 1st resJondent under section 148 of the lncome Tax Act, 1961 for A.Y.2016-17 and all fur her proceedings pursuant to impugned nctice' Counsel for the Petitio ler: SRI C' V. NARASIMHAM Counsel for the Respo rdent Nos. 1 & 2: SRI A. RADHA KRISHNA' SC FOR INCOME TAX Counsel forthe Respc'rdent No.3: SRI NAMAVARAPU RAJESHWAR RAO (ASSGI) The Court made the fo lowing: ORDER THE HON'BLE SRI JUSTICE UJJAL BHUYAN AND THE HON'BLE SMT. JUSTICE P. MADHAVI DEVI Heard Mr.C.V.Narasimham, learned counsel for petitioner and Mr.A.Radhakrishna, leamed Standing Counsel for Income Tax Department. 2. In this writ petition filed under Article 226 of the Constitution of India, petitioner has assailed the legality and validity of the notice dated 30.03.2021 issued by the I't respondent under Section 148 ofthe Income Tax Act, l96l (briefly 'the Act' hereinafter) for the Assessment Year 2016-17. The challenge has been made on the ground that though the petitioner had sought for the reasons for reopening the assessment, the same was not fumished to the petitioner, which is in violation of the decision of the Supreme Court in GKN Driveshafts (India) Ltd. V. Income Tax Officerr. That apafi, it is the contention of the petitioner that such reopening of assessment is on.the basis of change of opinion and not for reasons germane for reopening the assessment. 3. This Court on 01 .12.2021, called upon the learned Standing Counsel to obtain instructions regarding the fumishing of recorded reasons for reopening of assessment to enable the petitioner to file representation. Today, when the matter is called upon, learned ' (2003) zs9 rrR 19 (sc) WRIT PETITION No.29362 of 2021 ORDER t (Per UB, J) I 2 counsel for pe itioner as well as leamed Standing Ctounsel have submitted that :easons for issuance of impugned notice have been fumished to the petitioner on 09.12.2021 . 4. In terms tf the law laid down by the Supreme Court in GKN Driveshafts ca.,e (supra), we grant liberty to the petitioner to file objections to tl e aforesaid reasons within a period of three weeks from today, wL ereafter, the Assessing Otficer i.e. respondent No.l shall consider tl e same and pass a reasoned ordcr which shall be duty intimated to the petitioner. This shall be done within a period of three weeks from the late of receipt of the objections by the petitioner. 5. Till completion of the above exercise, respondents are directed not to proceed further on the basis of the impugned notice, dated 30.03.2021. This disp, ,ses of the writ petition. No order as to costs. Pending r riscellaneous applications, ifany, shall stand closed. 6 7 ,TRUE COPYi/ SD/.N.CHANDRA SEKHAR RAO ASSISTANT REGISTRAR - SECTION OFFICER To, 1. Assistant Commi ;sioner of lncome Tax Circle 3(1), flyderabad Signature towets, Opp. Bo anical Gardens Kondapur, Hyderabad - 500084 e,t/ LiR, ,I & PM), ll/, P., o.2 9 -16 2 of 20 8. one spare copy' NPJ GB { -- o(dy , +:ii:11:b?\"J$?:i',i:\"3 ::;::\"' -',.,. ; ::IJ\"\"i$i';^15;lmx\":l,** sc,,opucl o On\" CC to SRI A RAE \"u. On\" CC to SRI NAMA 7. Two CD Copies' ,, , uc.r eti2780(1 ) dated 3010312021 , HIGH COURT DATED:221121i 021 ORDER WP.No.29362 cf 2021 DISPOSING OF THE WRIT PETITION WITHOUT COS rS, glA i-E t ') ,J ?9 l[li 202? 42 .\": "