In Gkn Driveshafts (India) Ltd v. Income-Tax

IN THE HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J. WRIT PETITION NO.3336 OF 2004 Ciba India Private Limited.. Petitionerv/s.A.M.Jadhav, I.T.O. 9(1)-3,Mumbai and ors... Respondents Mr.F.B.Irani with Mr.Damodar i/by M/s. Kanga & Co.for petitioner. Mr.R.V.Desai with Ms.S.V.Bharucha for respondents. CORAM: R.M.LODHA ANDJ.P.DEVADHAR, JJ.DATED:22ndDecember, 2004 P.C. Heard. 2. In GKN Driveshafts (India) Ltd. v. Income-Tax Officer and ors., 259 ITR 19, the Supreme Court held thus- "We see no justifiable reason tointerfere with the order under challenge.However, we clarify that when a noticeunder section 148 of the Income-tax Act isissued, the proper course of action for thenoticee is to file a return and if he sodesires, to seek reasons for issuingnotices. The Assessing Officer is bound tofurnish reasons within a reasonable time.On receipt of reasons, the noticee isentitled to file objections to issuance ofnotice and the Assessing Officer is boundto dispose of the same by passing aspeaking order. In the instant case, asthe reasons have been disclosed in theseproceedings, the Assessing Officer has todispose of the objections, if filed, by passing a speaking with the assessment in respect of theabovesaid five assessment years." order, 3. We are informed that the reasons have beendisclosed to the petitioner. Looking to theaforesaid judgment of the Supreme court in GKNDriveshafts (India) Ltd. v. Income-Tax Officerand ors., we are of the view that the petitionershould file objections to the issuance of noticeand the reasons disclosed and the assessing officermust pass the speaking order before proceeding withthe assessment for assessment year 1999-2000.4. We, accordingly, dispose of the writ petitionby following order:-i)The petitioner shall file objectionsto the notice under section 148 ofthe Income Tax Act, 1961 dated14.5.2004 and the reasons disclosedfor issuance of said notice withinthree weeks from today.ii)We direct the assessing officer(respondent No.1) to dispose of thesaid objections by speaking order.iii)Until the objections are disposed ofby the respondent No.1 by speaking order and for a period of two weeksfrom the date of service of thatorder, no final reassessment ordershall be passed by the assessing officer for the assessment year1999-2000. (R.M.LODHA, J.)(J.P. DEVADHAR, J.)