The Tax Publishers2019 TaxPub(DT) 2423 (Meg-HC) : (2019) 416 ITR 0425 : (2019) 310 CTR 0706

INCOME TAX ACT, 1961

Article 226 Section 147

On non-submission of reasons for reopening and allied matters there has been a breach of principles of natural justice and also the procedure, required to be adopted for passing assessment orders on reassessment and demand orders, have not been followed. therefore it was an exceptional case for invoking power under article 226 of the Constitution of India.

Writ - Maintainability - Non-furnishing of reasons to reopen assessment under section 147 - Principle of natural justice

Notice under section 148 was issued to the assessee. On receipt of reasons, the noticee was entitled to file objections to issuance of notice and the AO was bound to dispose of the same by passing a speaking order but reasons for re-opening of assessments had not been furnished to the petitioner. In addition thereto, the petitioner while responding to the notices under sections 143(2) and 142(1) had requedsted for extending time for production of requisite documents up to 4-3-2010 for the reasons as detailed therein same too had been ignored.Held: While ignoring, to follow statutory requirements, filing objections and hearing, impugned assessment and demand orders have been passed which in turn would suggest that the respondent had not only breached the principles of natural justice but also breached the procedure which was required to be followed for decision (reassessment). There had been a breach of principles of natural justice and also the procedure, required to be adopted for passing assessment orders on reassessment and demand orders, have not been followed. Therefore, an exceptional case for invoking power under article 226 of the Constitution of India. Both the orders being unsustainable to ask the petitioner to avail remedies of appeal, matter will unnecessarily get protracted. While holding petitions maintainable, this Court allows the same and sets aside all the impugned assessment and demand orders dt. 20-2-2019. AO shall furnish reasons for re-opening of assessment of income for the said assessment years so as to enable the petitioner to file objections.

Relied:GKN Driveshafts (India) Ltd. v. ITO (2002) 125 Taxman 963 (SC) : 2003 TaxPub(DT) 0734 (SC), CIT & Ors. v. Chhabil Dass Agarwal (2014) 1 SCC 603 : 2013 TaxPub(DT) 2200 (SC) and CIT v. Trend Electronics (2015) 61 taxman.com 308 (Bom) : 2015 TaxPub(DT) 3759 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13 to 2016-17



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