2015 (5) TMI 1233 - HC - Income Tax

Validity of reopening of assessment u/s 147 - order disposing of and rejecting the objections dated 27th January, 2015 (Annexure 'V') was served on the petitioner-assessee on 10th February, 2015 and AO without waiting for the period of four weeks from such service passed an assessment order contrary to the directions of the Division Bench judgment of this Court on 11th February, 2014. - HELD THAT - As on the date the order dismissing the objection was served on the petitioner, the assessing officer rushed and passed the assessment order on the very next day namely, 11th February, 2015. Therefore, this assessment order should be ignored and this Court must permit the petitioner to canvass submissions challenging the legality and validity of notice under section 148 of the I.T. Act. In that regard, reliance is placed on the Division Bench judgment of this Court in the case of Aroni Commercials Limited 2014 (2) TMI 659 - BOMBAY HIGH COURT At the request, post this writ petition to 12th June, 2015. Till 19th June, 2015, there would be an ad-interim order restraining the respondents from taking any coercive measures to recover the amount under the impugned assessment order. This direction is without prejudice to the rights and contentions of both sides.

Summary

Issues:
Challenge to assessment order based on premature passing of assessment order contrary to court directions.

Analysis:
The petitioner sought to challenge an assessment order dated 11th February, 2015, on the grounds that the notice under section 148 of the Income Tax Act was dated 31st March, 2014. The petitioner objected to the reasons for reopening the assessment, and the order rejecting the objections was served on 10th February, 2015. The petitioner argued that the assessing officer passed the assessment order prematurely, contrary to the directions of a Division Bench judgment of the Court. The petitioner requested the Court to permit submissions challenging the legality of the notice under section 148 of the I.T. Act, citing the case of Aroni Commercials Limited v. Deputy Commissioner of Income Tax & Anr. The respondents sought time to take instructions, and the Court granted an ad-interim order restraining them from taking coercive measures to recover the amount under the assessment order until 19th June, 2015, without prejudice to the rights of both parties. The case was adjourned to 12th June, 2015, for further proceedings.