2022 (10) TMI 1051 - HC - Income Tax

Reopening of assessment u/s 147 - grievance of the petitioner that the objections raised have not been considered at all by the respondent - HELD THAT - It is the apprehension of the petitioner that without considering the case of the respondent and its defence, the authorities will proceed to frame the assessment pursuant to the impugned notice. As submitted that great prejudice would occur if the objections of the petitioner are not considered and disposed of in accordance with law by the assessing authority. In the facts of the case, when the objections of the petitioner are not considered and are not disposed of, which were given in response to the notice dated 30.3.2021 under section 148 of the Act in respect of Assessment Year 2014-2015, it would subserve the interests of justice that the competent authority of the respondent considers and disposes off the objections submitted by the petitioner. Accordingly, this petition is disposed of by directing the respondent No.1 to consider and dispose of the objections of the petitioner dated 20.1.2021 within six weeks from the date of receipt of this order.

Summary

Issues:
Challenge to notice under section 148 of the Income Tax Act, 1961 for Assessment Year 2014-2015; Consideration of objections raised by the petitioner against the reopening of assessment.

Analysis:
The petitioner filed a petition under Article 226 of the Constitution challenging a notice issued by the Income Tax officer under section 148 of the Income Tax Act, 1961 for the Assessment Year 2014-2015. The notice stated that the income chargeable to tax for the said assessment year had escaped assessment within the meaning of section 147 of the Act. In response to the notice, the petitioner filed a Return of income and requested the reasons for reopening, which were provided by the respondents on 20.12.2021. The reasons for reopening mentioned alleged payments made by the petitioner for the purchase of a flat from a third party and the need to verify the source of funds and payments amounting to Rs. 3 lakhs.

The petitioner raised objections against the proposed reassessment notice through a letter dated 20.1.2022, presenting various factual and legal submissions against the reopening. Despite this, the petitioner claimed that the objections were not considered by the respondent, leading to the apprehension that the authorities might proceed with framing the assessment without due consideration of the petitioner's defense. The petitioner argued that not considering the objections would result in great prejudice and requested that the objections be considered and disposed of in accordance with the law by the assessing authority.

The Court, after considering the submissions, directed the respondent No.1 to consider and dispose of the objections raised by the petitioner within six weeks from the date of the order. It was clarified that the Court did not express any opinion on the merits of the case and had not delved into the substantive aspects of the matter. The petition was disposed of with the above directions, allowing direct service of the order.