M/S. Winner Milk Private Limited v. The Deputy Commissioner Of Income Tax,Villupuram Circle, Villupuram

IN THE HIGH COURT OF JUDICATURE AT MADRAS M/s. Winner Milk Private Limited,Represented by its Director,K. Venkatrman,No.123/3, N.H.66, Ginjee,Thiruvannamalai Road, Sathyamangalam Village, Ginjee T.K. Villupuram District. ... Petitioner Vs The Deputy Commissioner of Income Tax,Villupuram Circle, Villupuram. ... Respondent Prayer: Petition filed under Article 226 of the Constitutionof India to issue a Writ of Certiorari calling for the recordsof the Respondent pertaining to the Reassessment Notice dated31.03.2015 under Section 148 of the Income Tax Act, 1961 inPAN : AAAF24045R, for the Assessment Year 2008-2009 and quashthe same. ORDER Heard the learned counsel for the Petitioner and the learnedStanding Counsel for the Respondent. 2. The Petitioner has challenged the impugned notice dated31.03.2015 issued under Section 148 of the Income Tax Act, 1961to reopen the Assessment for the Assessment Year 2008-2009.After the notice was issued, the Petitioner requested theRespondent to furnish the reason for reopening assessment whichwas communicated by the Respondent vide letter dated 25.06.2015.Thereafter, the Petitioner has filed his objections for https://hcservices.ecourts.gov.in/hcservices/ reopening of the Assessment vide his objections dated22.07.2015. The Respondent has thereafter passed anOrder/Communication dated 27.11.2015 overruling the objectionsof the Petitioner. 3. The reasons communicated to the Petitioner videCommunication dated 27.11.2015 though in compliance of thedecision of the Honourable Supreme Court in G.K.N.Driveshafts(India) Ltd. Vs. Income Tax Officer and Others, (2003) 1 SCC 72,does not culminate in a reassessment proceedings. It merelyshows the reasons for reopening of the Assessment under Section148 of the Income Tax Act, 1961. 4. Under these circumstances, I am of the view, theRespondent should take up the case and pass appropriate ordersunder Section 147 of the Income Tax Act after considering thesubmissions of the Petitioner. While passing such Order, theRespondent is not only required to keep the facts of the case inmind but also well-settled principles of law. If there is achange of opinion, the Assessment cannot reopened. Similarly,if there was true and full disclosure of all material factsnecessary for the Assessment made by the Petitioner, at the timeof original assessment, the Respondent would be required to dropthe proceedings as no action can be taken under this sectionafter the expiry of four years from the end of the relevantassessment year, unless any income chargeable to tax has escapedassessment for such assessment year by reason of the failure onthe part of the assessee to make a return under section 139 orin response to a notice issued under sub-section (1) of section142 or section 148 or to disclose fully and truly all materialfacts and necessary for his assessment, for that assessmentyear.” 5. Since the dispute pertains to the Assessment Year 2008-2009, I direct the Respondent to take up this proceeding anddispose the case within a period of 45 days from the date ofreceipt of a copy of this Order in accordance with law. ThePetitioner is given liberty to raise all defences and produceall materials that are relevant. 6. The Writ Petition stands disposed of with the aboveobservations. No costs. Consequently, connected MiscellaneousPetition is closed. s/d- Assistant Registrar(CS VIII) True Copy To The Deputy Commissioner of Income Tax,Villupuram Circle, Villupuram. +1 CC to Mr.S. Elambharathi, Advocate sr 12731. +1 Cc to Mr.A.P. Srinivas, Advocate sr 13832. W.P. No. 39779 of 2015 and M.P. No. 1 of 2015 VSNII(CO)SP(19/02/2020)