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

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WP/1397/2006HC BombayHCBM07006833200614 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 with the Assessing Officer concerning the reopening of the assessment for the assessment year 2000-2001 before approaching the 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 the assessment year 2000-2001. The ratio is that an assessee should exhaust the statutory remedy of filing objections before the Assessing Officer before invoking the writ jurisdiction of the High Court for issues related to reopening of assessment under Section 148.

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 the assessment year 2000-2001. The Assessing Officer had disclosed the reasons for reopening to the petitioner. The petitioner approached the Bombay High Court without filing objections to the reopening with the Assessing Officer. The High Court noted that the Apex Court in GKN Driveshafts (India) Ltd. v. Income-Tax Officer and others (259 ITR 19) held that after disclosure of reasons for reopening, the assessee may file objections, which the Assessing Officer must dispose of by a speaking order.

What were the issues?

1. Whether the petitioner should have filed objections with the Assessing Officer regarding the notice for reopening the assessment for assessment year 2000-2001 before approaching the High Court? (Question of procedure and law, turning on Section 148 of the Income Tax Act, 1961). Assessee's Contention: The judgment records no specific contention from the petitioner regarding this procedural aspect, other than their act of directly approaching the High Court. Revenue's Contention: The judgment records no specific contention from the revenue regarding this procedural aspect.

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.1397 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 2000-2001. 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 2000-2001 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 2000-2001 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 2000-2001. (R.M.LODHA, J.)

(J.P.DEVADHAR, J.)

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