DADASAHEB NARAYANRAO MANMADKAR vs. THE INCOME TAX OFFICER AND ANR.

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WP/1398/2006HC BombayHCBM07006836200614 March 2006Author: HON'BLE SHRI JUSTICE J.P. DEVADHAR,HON'BLE SHRI JUSTICE R.M. LODHA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that it would have been proper for the petitioner to file objections before the Assessing Officer concerning the reopening of the assessment for AY 2001-2002 before approaching the High Court. The Court disposed of the writ petition with specific directions. The petitioner was granted liberty to file objections to the reopening within three weeks. If objections were filed, the Assessing Officer was directed to dispose of them by passing a speaking order. Furthermore, for four weeks from the communication of the order disposing of the objections, the Assessing Officer was restrained from proceeding with the assessment for AY 2001-2002. The ratio is that procedural remedies available at the lower level should generally be exhausted before approaching the High Court, especially when the Assessing Officer is mandated to pass a speaking order on objections.

What were the facts?

The petitioner, Dadasaheb Narayanrao Manmadkar, challenged a notice dated January 20, 2005, issued by the Income Tax Officer under Section 148 of the Income Tax Act, 1961, for reopening the assessment for Assessment Year 2001-2002. The Assessing Officer had furnished the reasons for reopening to the petitioner. The High Court noted that the Supreme Court in GKN Driveshafts (India) Ltd. v. Income-Tax Officer mandated that after disclosure of reasons for reopening, the assessee may file objections, which the Assessing Officer must dispose of by a speaking order. The petitioner had not filed any objections before approaching the High Court.

What were the issues?

1. Whether the petitioner should have filed objections before the Assessing Officer regarding the reopening of assessment for AY 2001-2002 before approaching the High Court? (Question of procedure and mixed law and fact, concerning Section 148 of the Income Tax Act). Assessee's Contention: The judgment does not record any specific argument from the petitioner regarding this issue. However, the petitioner approached the High Court directly challenging the notice. Revenue's Contention: The judgment does not record any specific argument from the revenue regarding this issue.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE SIDE WRIT PETITION NO.1398 OF 2006 Dadasaheb Narayanrao Manmadkar .. Petitioner v/s. The Income Tax Officer, Ward 1(4), Pandharpur and another. .. Respondents Mr.S.S.Patwardhan for the petitioner. Mr.Ashok Kotangale for the respondents. CORAM : R.M. LODHA & J.P.DEVADHAR, JJ. DATED : 14TH MARCH, 2006. P.C. Heard Mr.S.S.Patwardhan, the learned counsel for the petitioner and Mr.Ashok Kotangale, the learned counsel for the respondents. 2. The petitioner seeks to impugn the notice dated 20th January, 2005 issued by the Assessing Officer under section 148 of the Income Tax Act for reopening the assessment for the assessment year 2001-2002. It is not in dispute that the Assessing Officer has now furnished the reasons to the petitioner. In GKN Driveshafts (India) Ltd. v. Income-Tax 2 Officer and others, 259 ITR 19, the Apex Court has observed that once the reasons for reopening of assessments under section 148 of the Income Tax Act are disclosed, the assessee may file objections and if such objections are filed, the Assessing Officer has to dispose of the said objections by a speaking order. 3. The learned counsel for the petitioner submits that the petitioner has not filed any objection. In our considered view, it would have been proper if the petitioner had filed the objections before the Assessing Officer to the reopening of the assessment for the assessment year 2001-2002 before approaching this court. 4. We, accordingly, dispose of the writ petition by the

following order:- (i) The petitioner shall be at liberty to file objections to the reopening of the assessment for the assessment year 2001-2002 pursuant to the notice issued to him under section 148 of the Income Tax Act and the reasons supplied by the Assessing Officer. (ii) If such objections are filed within three weeks from today, the Assessing Officer shall dispose

3 of the objections by passing a speaking order. (iii) For a period of four weeks from the date of communication of the order disposing of the petitioner's objections, the Assessing Officer shall not proceed with the assessment for the assessment year 2001-2002. (R.M.LODHA, J.)

(J.P.DEVADHAR, J.)

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