2005 (4) TMI 26 - HC - Income Tax

Reassessment - petitioner claims two reliefs in this writ petition. Firstly challenge to the order of the assessment after serving notices upon the petitioner under section 148 the order of assessment was passed making certain computations and passing an order of tax interest under sections 234A 234B and 234C and even initiated penalty proceedings under section 271(1)(c) - Secondly the petitioner has prayed that no reasons have been supplied to the assessee despite a specific request

Summary

Issues: Challenge to assessment order under Income-tax Act, 1961; Failure to supply reasons to assessee; Jurisdiction of Assessing Officer.

In this judgment by the Delhi High Court, the petitioner sought two reliefs in a writ petition. Firstly, the challenge was against the assessment order dated March 30, 2005, which included computations, tax interest, and penalty proceedings under sections 234A, 234B, 234C, and 271(1)(c) of the Income-tax Act, 1961. Secondly, the petitioner contended that no reasons were provided despite a specific request, which was contrary to a Supreme Court judgment. The Court held that the petitioner was entitled to receive the reasons recorded by the authorities. The respondent assured to supply the reasons within two weeks, allowing the assessee to take further legal action. The Court found the petitioner's argument of the assessment order being a mere change of opinion without jurisdiction unconvincing. It was noted that objections were considered before passing the assessment order, and any further challenge could be raised before the Commissioner of Income-tax (Appeals) through a statutory appeal. The Court disposed of the writ petition, granting liberty to the petitioner to file an appeal with all contentions.

Regarding the first prayer to challenge the assessment order, the petitioner, through their counsel, decided to withdraw the petition without prejudice to their right to appeal in accordance with the law. The Court dismissed the petition as withdrawn, granting the liberty as prayed for by the petitioner. This comprehensive judgment addressed the issues of challenging assessment orders under the Income-tax Act, failure to supply reasons to the assessee, and the jurisdiction of the Assessing Officer, providing a detailed analysis and legal clarity on each aspect raised in the petition.