2020 (12) TMI 1310 - HC - Income Tax

Reopening of assessment u/s 147 - Non disposing the objections raised by the Petitioner - HELD THAT - Having regard to the fact that the reasons for re-opening had been furnished by Respondent on 10.05.2017 and the Petitioner had not promptly raised objections, the Respondent cannot be faulted for proceeding further to take final decision. When this view was expressed, Learned Counsel for the Petitioner has sought permissions of this Court to withdraw the Writ Petition with liberty to the Petitioner to apply for reviving the appeal against the impugned order before the Commissioner of Income Tax (Appeals)-4, Chennai, so as to raise all contentions including the factual aspects in the objections in the letter dated 22.11.2017 sent to the Respondent. He has also filed a memo dated 22.12.2020 through e-mail to that effect, which is placed on record.

Summary

Issues:
Challenge to re-assessment order under Section 143(3) read with Section 147 of the Income Tax Act, 1961; Failure to dispose of objections before passing final order; Request for withdrawal of Writ Petition with liberty to revive appeal.

Analysis:
The Writ Petition contested the re-assessment order dated 20.12.2017 issued by the Respondent under Section 143(3) read with Section 147 of the Income Tax Act, 1961. The Petitioner had also filed an appeal in ITA No. 161/17-18/CIT(A)-4/AY: 2012-13 against the same order, which was withdrawn in light of the Writ Petition, with the option to revive the appeal later if necessary. The Petitioner had received a notice for re-opening the assessment on 31.03.2017 and requested reasons on 08.05.2017, which were provided on 10.05.2017. However, objections were raised only on 22.11.2017, by which time the re-assessment proceedings had already commenced, leading to the final order on 20.12.2017. The Petitioner argued that the final order should not have been passed without addressing the objections, citing the decision in GKN Driveshafts (India) Ltd. v. Income Tax Officer [(2003) 1 SCC 72].

The Court noted that the reasons for re-opening were provided on 10.05.2017, and since objections were not promptly raised by the Petitioner, the Respondent was justified in proceeding with the final decision. In light of this, the Learned Counsel for the Petitioner sought to withdraw the Writ Petition with liberty to revive the appeal in ITA No. 161/17-18/CIT(A)-4/AY: 2012-13 before the Commissioner of Income Tax (Appeals)-4, Chennai. The Petitioner aimed to bring forth all contentions, including factual aspects raised in the objections dated 22.11.2017. A memo was filed through e-mail to this effect on 22.12.2020, which was placed on record.

Consequently, the Writ Petition was dismissed as withdrawn, granting the Petitioner the liberty to apply for reviving the appeal. The Court clarified that the Petitioner could seek any necessary clarifications in the future. As a result, the connected Miscellaneous Petitions were closed, and no costs were awarded in the matter.