Seshasayee Paper And Boards Limited v. The Deputy Commissioner Of Income Tax, Central Circle Ii (1)

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR. JUSTICE K.RAVICHANDRABAABU W.P.Nos.43902 of 2006, 29882 & 29884 of 2007 Seshasayee Paper and Boards Limited,Represented by its Director (Finance) & Secretary,Sri V.PichaiPallipalayam,Cauvery R.S.P.O.,Erode – 638007. ... Petitioner in all WPs Vs. 1. The Deputy Commissioner of Income Tax, Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. 2. The Assistant Commissioner of Income Tax, Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. 3. The Joint Commissioner of Income Tax (OSD), Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. 4. The Assistant Commissioner of Income Tax, Central Circle II (1) (i/c), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1) (i/c), 108, Uthamar Gandhi Road, Chennai – 600034. 5. The Commissioner of Income Tax, Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. ..Respondents in WP.No.43902/2006 1. The Deputy Commissioner of Income Tax, Central Circle II (1) (i/c), 46, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1) (i/c), 46, Uthamar Gandhi Road, Chennai – 600034. 2. The Commissioner of Income Tax, Central Circle II, 46, Uthamar Gandhi Road, Chennai – 600034. Prayer in WP.No.43902/2006 : Writ Petition filed under Article226 of the Constitution of India praying to issue a Writ ofCertiorari to call for the records in AACCS 1192.G/4.S dated29.03.2006 on the file of the third respondent and quash thesame. Prayer in WP.No.29882/2007 : Writ Petition filed under Article226 of the Constitution of India praying to issue a Writ ofCertiorari to call for the records in PAN AACCS 1192G/ CentralCircle II(1) dated 23.07.2007 of the first respondent relatingto the Assessment Year 2001-02 and quash the same. Prayer in WP.No.29884/2007 : Writ Petition filed under Article226 of the Constitution of India praying to issue a Writ ofCertiorari to call for the records in PAN AACCS 1192G/ CentralCircle II(1) dated 23.07.2007 of the first respondent relatingto the Assessment Year 2002-03 and quash the same. These three writ petitions are filed challenging the noticeissued under Section 148 of the Income Tax Act, 1961, proposingto reopen the Assessment relevant to Assessment Years 1999-2000,2001-2002 and 2002-2003, by contending that the petitioner'sincome assessable/chargeable to tax has escaped assessmentwithin the meaning of Section 147 of the Income Tax Act, 1961. 2. The contentions of the petitioner in these writ petitionsquestioning the impugned notice issued under Section 148, are onseveral grounds, which include that the notice impugned wasissued on mere change of opinion and that the same was issuedbeyond the period of four years. 3. Mr.M.P.Senthil Kumar, learned counsel appearing forthe petitioner contended that in view of the grounds raised inthese writ petitions, this Court can interfere with the impugnednotice and set aside the same. 2. The contentions of the petitioner in these writ petitionsquestioning the impugned notice issued under Section 148, are onseveral grounds, which include that the notice impugned wasissued on mere change of opinion and that the same was issuedbeyond the period of four years. 3. Mr.M.P.Senthil Kumar, learned counsel appearing forthe petitioner contended that in view of the grounds raised inthese writ petitions, this Court can interfere with the impugnednotice and set aside the same. 4. On the other hand, Mr.A.P.Srinivas, learned seniorstanding counsel for the Revenue/Respondents contended that inview of the decision made by the Apex Court in “GKN Driveshafts(India) Ltd. Vs. Income Tax Officer & others” reported in“(2003) 259 ITR 0019”, the challenge made by the petitionerbefore this Court, even at the stage of issuance of Section148 is not maintainable, as it is for the petitionerto make the objections to the reasons for reopening. He furthersubmitted that the petitioner was already furnished with thereasons for reopening and therefore, it is for themto make the objections and thereafter, to allow the AssessingOfficer to pass orders on such objections, as observed in “GKNDriveshafts (India) Ltd. Vs. Income Tax Officer & others” case. 5. Therefore, the contention of the learned senior standingcounsel appearing for the Revenue/Respondents is that evenbefore that stage has reached, the petitioner has approachedthis Court and filed the present writ petitions. 6. Heard both sides. 7. No doubt, the petitioner has raised several contentionstouching upon the merits of the notice issued under Section 148including the limitation and also by contending that it is basedon change of opinion. But I am of the view that thesecontentions cannot be considered at this stage now, since thepetitioner is bound to give objections to the reasons forreopening and thereafter, the Assessing Officer has to pass areasoned order, as observed by the Apex Court in“GKN Driveshafts (India) Ltd. Vs. Income Tax Officer & others”case. When such course of action is yet to be completed, I donot think that these writ petitions at this stage can bemaintained any further. Therefore, without expressing anyview on the merits of the contentions raised by the petitioneragainst the impugned notice, these writ petitions are disposedof, by granting liberty to the petitioner to give objectionsto the reasons for reopening, within a period of four weeksfrom the date of receipt of a copy of this order. On receipt ofsuch objections, the Assessing Officer shall consider the sameand pass a reasoned order, within a period of fourweeks thereafter. Based on the order to be passed by the Assessing Officer,it is for the parties to workout their further course of actionin accordance with law, thereafter. No costs. -s/d- Assistant Registrar(CCC) True Copy Sub-Assistant RegistrarsniTo1. The Deputy Commissioner of Income Tax, Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034.2. The Assistant Commissioner of Income Tax, Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034.3. The Joint Commissioner of Income Tax (OSD), Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. 4. The Assistant Commissioner of Income Tax, Central Circle II (1) (i/c), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1) (i/c), 108, Uthamar Gandhi Road, Chennai – 600034. 5. The Commissioner of Income Tax, Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. 6. The Deputy Commissioner of Income Tax, Central Circle II (1) (i/c), 46, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1) (i/c), 46, Uthamar Gandhi Road, Chennai – 600034. 4. The Assistant Commissioner of Income Tax, Central Circle II (1) (i/c), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1) (i/c), 108, Uthamar Gandhi Road, Chennai – 600034. 5. The Commissioner of Income Tax, Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1), 108, Uthamar Gandhi Road, Chennai – 600034. 6. The Deputy Commissioner of Income Tax, Central Circle II (1) (i/c), 46, Uthamar Gandhi Road, Chennai – 600034. Central Circle II (1) (i/c), 46, Uthamar Gandhi Road, Chennai – 600034. 7. The Commissioner of Income Tax, Central Circle II, 46, Uthamar Gandhi Road, Chennai – 600034. Central Circle II, 46, Uthamar Gandhi Road, Chennai – 600034. +2 CCS to M/s. Malika Srinivasan, Advocate sr 86636 +3 Ccs to Mr.A.P.Srinivas, Advocate sr 86433. +1 CC to M/s. Malika Srinivasan, Advocate sr 86636(17/12/2019) W.P.Nos.43902 of 2006, 29882 & 29884 of 2007 SSI(CO)SP(21/11/2019)