The Supreme Court In The Case Of Gkn Driveshafts (India)Limited v. Income Tax Officer And Others (259 Itr 1) Has Set Outthe Proper Procedure To Be Followed In Matters Of Re-Assessmentas Follows

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE DR. JUSTICE ANITA SUMANTH Writ Petition Nos.24901, 24903 and 24904 of 2009 M/s.Tamil Nadu State Transport Corporation (Villupuram) Ltd.,represented by Managing Director# 3/137, Sala Medu, Valutha Reddy Post, Villupuram – 605 062. ...Petitioner in the above W.PsVs The Assistant Commissioner of Income TaxCircle I, Soorappa Naicken Chavady,Cuddalore – 607 002. ... Respondent in the above W.Ps Prayer: Petitions filed under Article 226 of The Constitution ofIndia praying for the issuance of Writ of Certiorari to call forthe records of the respondent in PAN No. /T11103 and toquash the impugned notice dated 27.03.2009, 30.03.2019 issuedfor the Assessment Year 2002-2003, 2004-2005 and 2005-2006. Heard Mr.J.Balachander, learned counsel for the petitionerand Mr.A.P.Srinivas, learned Senior Standing counsel for therespondents. 2.The petitioner challenges notices dated 30.03.2009 issuedby the Assistant Commissioner of Income Tax, respondent hereinin relation to assessment years 2002-03, 2004-05 and 2005-06issued under Section 148 of the Income Tax Act, 1961 (in short'Act'). 3. The primary ground of challenge is that the impugnednotices have been issued beyond the period of four years fromthe end of the relevant assessment year and as such are barredby limitation. https://hcservices.ecourts.gov.in/hcservices/ 4. Pursuant to the receipt of the impugned notices and inresponse thereto, the petitioner did not file a return ofincome, but merely sought, vide reply dated 20.04.2009, thereasons recorded, based on which the proceedings for re-assessment were initiated. The reply dated 20.04.2009 reads asfollows: '1.We received your notice cited on 28.03.2009. 2. Our assessment for Assessment Year 2002-2003 was completed by order made under section 143(3) determining the total income at Nil and incomeunder section 115JB at Rs.5,21,04,625. 3. This assessment was subsequently revised togive effect to the scheme of amalgamation and basedon directions in the appeal filed beforeCommissioner of Income tax (Appeals), the assessmentwas re-determining the total income at Nil evenunder section 115 JB.4. We hereby request you to give the reasonsrecorded for re-opening the assessment in writing toenable us to take further steps pursuant to thenotice cited.5. You are aware that you have given us only30 days time to file the Return of Income pursuantto notice cited and hence your reply to communicatethe reasons recorded for re-opening the assessmentshould be sent to us immediately.' 5. I am of the view that the petitioner has not followedthe proper procedure as required under law in matters of re-assessment, and ought to have complied with the the notices,filing a return of income within the time frame indicated. Itwas incumbent upon the petitioner/assessee to have filed areturn of income and only thereafter sought a copy of reasonsfor re-assessment. 6. The Supreme Court in the case of GKN Driveshafts (India)Limited V. Income Tax Officer and others (259 ITR 1) has set outthe proper procedure to be followed in matters of re-assessmentas follows: We see no justifiable reason to interfere with theorder under challenge. However, we clarify that whena notice under Section 148 of the Income tax Act isissued, the proper course of action for the noticeeis to file return and if he so desires, to seekreasons for issuing notices. The assessing officeris bound to furnish reasons within a reasonabletime. On receipt of reasons, the noticee is entitledto file objections to issuance of notice and the https://hcservices.ecourts.gov.in/hcservices/ 6. The Supreme Court in the case of GKN Driveshafts (India)Limited V. Income Tax Officer and others (259 ITR 1) has set outthe proper procedure to be followed in matters of re-assessmentas follows: We see no justifiable reason to interfere with theorder under challenge. However, we clarify that whena notice under Section 148 of the Income tax Act isissued, the proper course of action for the noticeeis to file return and if he so desires, to seekreasons for issuing notices. The assessing officeris bound to furnish reasons within a reasonabletime. On receipt of reasons, the noticee is entitledto file objections to issuance of notice and the https://hcservices.ecourts.gov.in/hcservices/ assessing officer is bound to dispose of the same bypassing a speaking order. In the instant case, asthe reasons have been disclosed in theseproceedings, the assessing officer has to dispose ofthe objections, if filed, by passing a speakingOrder before proceeding with the assessment inrespect of the abovesaid five assessment years. 7. In the light of the aforesaid, these Writ Petitions areliable to be dismissed and I do so. However, putting in motionthe appropriate procedure as enunciated by the Supreme Court,the petitioner is directed to comply with the impugned noticesdated 30.03.2009 and file returns of income for the AssessmentYears in question within a period of four (4) weeks from today.The settled procedure for re-assessment shall be followed byboth parties thereafter. No costs. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar slTo The Assistant Commissioner of Income TaxCircle I, Soorappa Naicken Chavady,Cuddalore – 607 002.Writ Petition Nos.24901, 24903 and 24904 of 2009GMR(CO)SSM(24/10/2019)