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The Tax Publishers2017 TaxPub(DT) 0343 (Uttarakhand-HC) Maruti Sah & Brothers v. ITO INCOME TAX ACT, 1961 --Reassessment--Notice issued under section 148Filed objections in writ petition----Where re-opening notice had been sent to assessee with reasons for issuance of such notice, the writ petition for quashing the said notice was found not admissible by High Court and assessee was advised, since it would be appropriate to approach AO, to reply the notice and take all its pleas before him.--Assessee was an AOP and M was its principal member. Assessee was deriving its income from retail liquor trade. Re-opening notice was issued to assessee AOP, consequent to AIR query raised against its principal member, M, on the ground that income derived from sale of immovable property, certain amount of cash deposit and difference of certain amount in purchase of liquor had escaped assessment. Assessee challenged the issuance of notice by filing a writ petition. *Held:* Re-opening notice had been sent to assessee with reasons for issuance of such notice and the required sanction therefor was also obtained from the competent authority. High Court could not entertain writ petition for quashing notice issued under section 148, rather it would be appropriate for assessee to approach the AO and reply to the notice and take all pleas before AO that he had taken before court. Income Tax Act, 1961, Section 148 *REFERRED :* GKN Drive Shafts (India) Ltd. v. ITO (2003) 259 ITR 19 and Asstt. CIT v. Rajesh Jhavari Stock Brokers (P.) Ltd. (2007) 291 ITR 500. FAVOUR : Against the assessee A.Y. : 2009-10 IN THE UTTARAKHAND HIGH COURT V.K. BIST, J. Maruti Sah & Brothers v. ITO Writ Petition (M/S) No. 2813 of 2016 26 December, 2016 Petitioner by: Mohit Maulekhi, Advocate Respondent by: H.M. Bhatia, Standard Counsel SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2017 TaxPub(DT) 0343 (Uttarakhand-HC)

Maruti Sah & Brothers v. ITO

INCOME TAX ACT, 1961

--Reassessment--Notice issued under section 148Filed objections in writ petition----Where re-opening notice had been sent to assessee with reasons for issuance of such notice, the writ petition for quashing the said notice was found not admissible by High Court and assessee was advised, since it would be appropriate to approach AO, to reply the notice and take all its pleas before him.--Assessee was an AOP and M was its principal member. Assessee was deriving its income from retail liquor trade. Re-opening notice was issued to assessee AOP, consequent to AIR query raised against its principal member, M, on the ground that income derived from sale of immovable property, certain amount of cash deposit and difference of certain amount in purchase of liquor had escaped assessment. Assessee challenged the issuance of notice by filing a writ petition. Held: Re-opening notice had been sent to assessee with reasons for issuance of such notice and the required sanction therefor was also obtained from the competent authority. High Court could not entertain writ petition for quashing notice issued under section 148, rather it would be appropriate for assessee to approach the AO and reply to the notice and take all pleas before AO that he had taken before court.

Income Tax Act, 1961, Section 148

REFERRED : GKN Drive Shafts (India) Ltd. v. ITO (2003) 259 ITR 19 and Asstt. CIT v. Rajesh Jhavari Stock Brokers (P.) Ltd. (2007) 291 ITR 500.

FAVOUR : Against the assessee

A.Y. : 2009-10

IN THE UTTARAKHAND HIGH COURT

V.K. BIST, J.

Maruti Sah & Brothers v. ITO

Writ Petition (M/S) No. 2813 of 2016

26 December, 2016

Petitioner by: Mohit Maulekhi, Advocate

Respondent by: H.M. Bhatia, Standard Counsel