Wp(C)/7401/2009 Of Dgt Systems Pvt.ltd v. Commnr.of Income Tax

06. 28.11.2018 Heard learned counsel for the parties. By way of this writ petition, petitioner has challenged the action of the opposite parties for issuance of notice U/s. 148 of the Income Tax Act, 1961 and non supply of the reasons for initiating such proceeding. Learned counsel for the petitioner states that though the petitioner has participated in the proceeding in compliance to the said notice and sought for reason for reopening the assessment, the opposite party No.2 without communicating the reasons has proceeded with the reassessment. It appears that the petitioner has specifically submitted the application on 27.3.2009 (Annexure-5) wherein at paragraph 3 it was prayed that the petitioner may be intimated the reasons recorded for initiation of proceeding U/s. 148 of the IT Act, 1961. Even on 14.04.2009 petitioner submitted another application (Annexure-6), which reads as under: “Sir…. In respect of your above mentioned notice, it is submitted that return of income filed U/s. 139(1) of the I.T. Act vide Receipt No. 818, dt. 30.11.2003 in the office of the A.C.I.T., Circle-2(1), Bhubaneswar may be treated as compliance to your above mentioned notice. However, reasons for issue of notice U/s. 148 may kindly be intimated enabling the assessee to proceed further in this regard…” In spite of that the petitioner was not supplied with the reasons. This Court while entertaining this writ petition, on 26.6.2009 passed the following order: “..The case is called out. No one appears for the petitioner. Issue notice by registered post with A.D. Requisites shall be filed by Monday (29.6.2009). List this matter in the week commencing 20[th] July, 2009. In the meantime, further proceedings against the petitioner pursuant to the notice under Section 148 of the Income Tax Act, 1961 under Annexure-1 for the assessment year 2003-04 shall remain stayed.” Further on 28.07.2009, this Court passed the following order: “..Mr. A.K. Mohapatra, learned Standing Counsel (Income Tax) takes notice on behalf of the opposite parties and submits that he would be able to file counter affidavit by 3.8.2009. List this matter on 3.8.2009. Interim order shall continue till the next date.” Even on 3.8.2009, further time was grated to file counter, however, till today no counter has been filed by the opposite parties. Therefore, it is presumed that the petitioner has not been given reasons for initiation of proceedings U/s. 148 of the Act. Further the opposite parties have failed to show that any reason has been supplied to the petitioner. Considering the aforesaid facts and circumstance, the writ petition deserves to be allowed. AD It is directed that the petitioner shall appear before the authority on 17.12.2018 along with a certified copy of this order. Thereafter, the authority shall give reasons for initiation of the proceeding U/s. 148 of the Act, as claimed by the petitioner. If it will not be possible for the authority to give the reasons on the said date, it will be open for the authority to fix another date for supplying the reasons. After supplying the reasons in writing, the petitioner shall be given reasonable time to file objection, if any, thereto and thereafter the authority may proceed in the matter in accordance with law. It is made clear that we have not expressed any opinion on the merit of the case of the petitioner. The writ petition is allowed to the aforesaid extent. Misc. Cases, pending, if any stand disposed of accordingly. .…….......……………… ( K.S. Jhaveri ) Chief Justice …………………..……… (K.R. Mohapatra) Judge