Sharad Kumar v. The Assistant Commissioner Of Income Tax,Non Corporate Circle 20(1),Room

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 11.03.2021CORAM: Sharad Kumar ... Petitioner Vs. The Assistant Commissioner of Income Tax,Non Corporate Circle 20(1),Room No.311, 3[rd] Floor, Wanaparthy Block,121 MG Road, Nungambakkam,Chennai – 600 034. ... Respondent PRAYER:- Writ Petition is filed under Article 226 of theConstitution of India praying for the issuance of Writ ofCertiorari, to call for the records of the respondent containedin its Assessment Order dated 30.03.2016, passed under Section143(3) read with Section 147 of the Income Tax Act, 1961 in PANAASPS2554F for the Assessment Year 2008-2009 assessing thepetitioner's total income at Rs.4,08,12,500/- and to quash thesame. For Petitioner : Mr.Suhrith Parthasarathy For Respondent : Mr.Prabhu Mukunth Arunkumar Standing CounselO R D E R The petitioner has challenged the impugned assessment orderdated 30.03.2016 passed by the 1[st] respondent pursuant to thereopening of the assessment notice dated 31.03.2015 undersection 148 of the Income Tax Act, 1961. The respondent hasalso given reasons for reopening the assessment prior to passedin the impugned order vide communication dated 26.08.2015 whichreads as under: ''The letter from Deputy Director ofIncome Tax (Investigation), Chennai, dated30.03.2015 states that the assessee has payingan amount of Rs.2 crores to Savings Bankaccount to M/s.Kalaignar Television Limitedduring the year 2007-08''. 2.However, after the petitioner had filed a detailedrepresentation dated 03.09.2015 against reopening of theassessment the respondent has proceed to pass the impugnedassessment order dated 30.03.2016 and therefore it is sought to https://hcservices.ecourts.gov.in/hcservices/ be assailed on the ground that the impugned proceedings areunsustainable. 3.Defending the impugned order, the learned counsel for therespondent submits that the reasons for that petitioner'srepresentation dated 03.09.2015 was considered by the AssistantCommissioner of Income Tax. The respondent herein, an orderdated 29.01.2016 had been communicated pursuant to which theimpugned assessment has been passed. He therefore prays thatthe impugned assessment order dated 30.03.2016 is sustainableand the present writ petition is liable to be dismissed. 4.Heard the learned counsel for the petitioner and thelearned counsel for the respondent. 5.Today, when the case was taken up for hearing, the learnedcounsel for the respondent Income Tax Department has filed acopy of the communication dated 29.01.2016 bearing referenceNo.ACIT-NCC-20/2015-16. The content of the said letter isreproduced below: Sub:Reopening u/s 148 in the case ofShri.R.Sharad Kumar, PAN No. forAssessment Year 2008-09-Reasons-Reg.Ref:Your letter dated 03.09.2015. Please refer to the letter under referenceobjecting to reasons for reopening theassessment in your case for Assessment Year2008-09.The objections are not acceptable as youhave not furnished evidences in support of yourclaim. The entries in bank account and thenature of transactions and all bank accountsare to be furnished. In these circumstances,the claim reopening is based on ''same set offacts'' is not with any basis. Hence it isrejected. 6.The above said letter is purportedly a speaking orderpassed in the light of the decision of the Hon'ble Supreme Courtin G.K.N Drive Shafts India Ltd. Vs Income Tax Officer, 259 ITR19 (SC). A perusal of the above communication dated 29.01.2016the relevant portion shows this is a non speaking order andmerely conveys the decision over ruling the objection of thepetitioner. The exercise carried out by the respondent wascontrary to the decision of the Hon'ble Supreme Court in G.K.NDrive Shafts India Ltd. Vs Income Tax Officer, 259 ITR 19 (SC). 7.Therefore the impugned assessment order passed by the 6.The above said letter is purportedly a speaking orderpassed in the light of the decision of the Hon'ble Supreme Courtin G.K.N Drive Shafts India Ltd. Vs Income Tax Officer, 259 ITR19 (SC). A perusal of the above communication dated 29.01.2016the relevant portion shows this is a non speaking order andmerely conveys the decision over ruling the objection of thepetitioner. The exercise carried out by the respondent wascontrary to the decision of the Hon'ble Supreme Court in G.K.NDrive Shafts India Ltd. Vs Income Tax Officer, 259 ITR 19 (SC). 7.Therefore the impugned assessment order passed by the https://hcservices.ecourts.gov.in/hcservices/ respondent is liable to be quashed. Under these circumstances,the impugned assessment order dated 30.03.2016 is quashed bydirecting the respondent to pass a speaking order in terms ofthe decision of the supreme Court in G.K.N Drive Shafts IndiaLtd. Vs Income Tax Officer, 259 ITR 19 (SC) within a period ofthree months from the date of receipt of a copy of this order.Thereafter, the assessment proceedings can be completed inaccordance with law. 8.Accordingly, this writ petition stands allowed. No costs.Consequently, connected Miscellaneous Petition is closed. Sd/- Assistant Registrar (CS III)/TRUE COPY/Sub-Assistant Registrar jasToThe Assistant Commissioner of Income Tax,Non Corporate Circle 20(1),Room No.311, 3[rd] Floor,Wanaparthy Block,121 MG Road, Nungambakkam,Chennai – 600 034.+1CC TO M/S.HEMA MURALIKRISHNAN, ADVOCATE, SR.NO. 16339+2cc to Mr.ARUN KARTHIK MOHAN,Advocate, SR.NO. 11331,15505W.P.No.14253 of 2016andW.M.P.No.12448 of 2016 PMK(CO)KKN 20.04.2021