M/S. K.g.metal Precision Private Limitedrepresented By Its Managing Director S.solochana v. The Assistant Commissioner Of Income Tax,Corporate Circle – 4 (2), Room

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN W.P.Nos.2728 & 2733 of 2019andW.M.P.Nos.2983, 2985, 2986, 2992, 2995 & 2996 of 2019 (Through Video Conferencing) M/s. K.G.Metal Precision Private LimitedRepresented by its Managing Director S.Solochana,No.364, Sundarapuram,Anna Nagar East,Chennai 602 102.... Petitioner in both W.Ps Vs The Assistant Commissioner of Income Tax,Corporate Circle – 4 (2), Room No.433,4[th] Floor, Main Building, AayakarBhavan,121, M.G. Road,Chennai – 600 034. ... Respondent in both W.Ps Prayer in W.P.No.2728 of 2019: Petition filed under Article226 of the Constitution of India to issue a Writ of Certioraricalling for the records of the 1[st] Respondent contained in itsnotice issued under Section 148 of the Income Tax Act, 1961,for PAN: , dated 29.03.2016, for Assessment Year2010-2011, and all proceedings in furtherance thereof,including the assessment order issued under Section 144 r.w.s.143 (3) r.w.s. 147 of the Income Tax Act, 1961, dated28.12.2018, for Assessment Year 2010-2011, and to quash thesame. Prayer in W.P.No.2733 of 2019: Petition filed under Article226 of the Constitution of India to issue a Writ of Certioraricalling for the records of the 1[st] Respondent contained in itsnotice issued under Section 148 of the Income Tax Act, 1961,for PAN: , dated 31.03.2018, for Assessment Year2011-2012, and all proceedings in furtherance thereof,including the assessment order issued under Section 144 r.w.s.143 (3) r.w.s. 147 of the Income Tax Act, 1961, dated28.12.2018, for Assessment Year 2011-2012, and to quash thesame. For Petitioner : Mrs.Ashwini Vaidialingam(in both W.Ps) for M/s.Arun Karthik Mohan For Respondent : Mrs.Hema Muralikrishnanhttps://hcservices.ecourts.gov.in/hcservices/(in both W.Ps) Senior Standing Counsel COMMON ORDER By this common order, both these writ petitions are beingdisposed of. 2. The petitioner has challenged the Impugned AssessmentOrder dated 28.12.2018 for the Assessment Years 2010-2011 and2011-2012 respectively. 3. It is the case of the petitioner that the notices forreopening the assessment for the respective Assessment Yearswere issued on 31.03.2017, and 29.03.2016. The learnedcounsel for the petitioner submits that after the petitionerwas called upon the respondent to furnish the reasons forreopening of the Assessment, the respondent has directlyproceeded to pass the Impugned Assessment Order on 28.12.2018without passing a speaking order and therefore submits thecase may be remitted back to the respondent by directing therespondent to consider the objections filed by the petitioneron 28.12.2018. 4. Opposing the prayer, the learned Senior StandingCounsel for the respondent submits that as far as theAssessment Year 2011-2012 is concerned, the petitioner had notfiled any response in time and therefore, after the reasonswere furnished for reopening the Assessment on 06.12.2018, theimpugned orders were passed on 28.12.2018. 5. The learned Senior Standing Counsel for the respondentfurther submits Assessment have been completed within the timein terms of Section 153(2) of the Income Tax Act, 1961, andtherefore the Assessment orders were passed within a period ofnine months from the date of notice of the Income TaxAct,1961. It is submitted that the writ petitions lackmerits and are liable to be dismissed by directing thepetitioner to workout the remedy by filing appeal before theAppellate Commissioner under Section 246A of the Income TaxAct, 1961. 6. Heard the learned counsel for the petitioner and thelearned Senior Standing Counsel for the respondent and perusedthe impugned Assessment Orders. 5. The learned Senior Standing Counsel for the respondentfurther submits Assessment have been completed within the timein terms of Section 153(2) of the Income Tax Act, 1961, andtherefore the Assessment orders were passed within a period ofnine months from the date of notice of the Income TaxAct,1961. It is submitted that the writ petitions lackmerits and are liable to be dismissed by directing thepetitioner to workout the remedy by filing appeal before theAppellate Commissioner under Section 246A of the Income TaxAct, 1961. 6. Heard the learned counsel for the petitioner and thelearned Senior Standing Counsel for the respondent and perusedthe impugned Assessment Orders. 7. It is noticed that though the petitioner has not beenfiled a reply to Section 143(2) notice issued by therespondent for the Assessment Year 2011-2012. The facts alsoindicates that the reasons for reopening the Assessment forthe respective years were communicated to the petitioner videcommunication dated 06.12.2018. 8. Thereafter, the orders have been passed on 28.12.2018,as Assessment orders have to be passed within the time.Therefore, no fault can be found with the respondent ashttps://hcservices.ecourts.gov.in/hcservices/otherwise entire exercise taken would have lapsed due to limitation. 9. Nevertheless, the fact remains that the petitionerhas also sent a representation/objection on 28.12.2018, thedate on which the Impugned Orders have been passed without aspeaking order proceeding these orders. 10. Considering the above, the Impugned Assessment Ordersare quashed and the cases are remitted back to the respondentto pass a speaking order in terms of the decision of theHon'ble Supreme Court in GKN Driveshafts (India) Limited Vs.Income Tax Officer and Ors [2003] 259 ITR 19 (SC) and tothereafter pass appropriate Assessment Order. Since thedispute pertains to the Assessment Years 2010-2011 and 2011-2012, the respondent may pass a speaking order preferablywithin a period of thirty (30) days from the date of receiptof a copy of this order based on the representation/objectionfiled by the petitioner on 28.12.2018 in accordance with lawand on merits. The respondent shall pass Assessment orderwithin a period of thirty (30) days thereafter. 11. Accordingly, these writ petitions stand disposed ofwith the above observations. No costs. Consequently,connected Writ Miscellaneous Petitions are closed. //True copy// jas/rgm To The Assistant Commissioner of Income Tax,Corporate Circle – 4 (2), Room No.433,4[th] Floor, Main Building, AayakarBhavan,121, M.G. Road, Chennai – 600 034. +2ccs to Mr.Suhrith Parthasarathy, Advocate SR.No.64289 +1cc to Ms.Hema Muralikrishnan, Advocate SR.No.64251 VG II(CO)GMY(04/01/2022) https://hcservices.ecourts.gov.in/hcservices/