SURESH BABULAL CHOUHAN vs. COMMISSIONER OF INCOME TAX AND ORS.

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WP/144/2005HC BombayHCBM01000824200514 March 2005Bench: HON'BLE SHRI JUSTICE J.P. DEVADHAR,HON'BLE SHRI JUSTICE V.C. DAGA3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that it would be open to the petitioners to raise all objections concerning the reopening of the assessment before the assessing officer. The Court further stated that the assessing officer is bound to dispose of these objections before proceeding further with the assessment. The Court did not delve into the merits of whether the reopening was justified or whether material was found during the survey. The principle established is that objections to reopening must be addressed by the assessing officer before further action. The petitions were dismissed in limine.

What were the facts?

The petitioners, Suresh Babulal Chouhan, Ashok Babulal Chouhan, Jaykumar Babulal Chouhan, and Shaila Vijay Purohit, filed writ petitions before the Bombay High Court. The petitions challenged the Income Tax Officer's decision to reopen assessments under Section 148 of the Income-tax Act, 1961. The Income Tax Officer, Ward 1(2), Kolhapur, had issued notices for reopening. The petitioners had previously filed their returns under Section 139(1) and requested these be treated as returns filed pursuant to the Section 148 notices. The revenue contended that the reopening was based on material gathered during a survey action, while the petitioners disputed this, stating no such material was found.

What were the issues?

1. Whether the Income Tax Officer had valid reasons to reopen the assessments under Section 148 of the Income-tax Act, 1961, considering the contentions of both the assessee and the revenue regarding the material gathered during the survey action. Assessee's Contention: The petitioners argued that the reopening was not based on any material found during the survey action. They also requested their original returns filed under Section 139(1) be treated as returns filed in response to the Section 148 notices. Revenue's Contention: The revenue contended that the reopening was based on material gathered during the course of a survey action.

Which sections of the Income-tax Act were involved?

Section 148,Section 139(1)

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.126 OF 2005 AND WRIT PETITION NO.131 OF 2005 AND WRIT PETITION NO.132 OF 2005 AND WRIT PETITION NO.141 OF 2005 AND WRIT PETITION NO.144 OF 2005 Suresh Babulal Chouhan .. Petitioner. V/s. Commissioner of Income Tax, Kolhapur & Others .. Respondents. WRIT PETITION NO.127 OF 2005 AND WRIT PETITION NO.129 OF 2005 AND WRIT PETITION NO.130 OF 2005 AND WRIT PETITION NO.135 OF 2005 AND WRIT PETITION NO.136 OF 2005 AND WRIT PETITION NO.146 OF 2005 Ashok Babulal Chouhan .. Petitioner. V/s. Commissioner of Income Tax, Kolhapur & Others .. Respondents. WRIT PETITION NO.128 OF 2005 AND WRIT PETITION NO.134 OF 2005 AND WRIT PETITION NO.137 OF 2005 AND WRIT PETITION NO.139 OF 2005 AND WRIT PETITION NO.140 OF 2005 Jaykumar Babulal Chouhan .. Petitioner. V/s. Commissioner of Income-tax, Kolhapur & Others .. Respondents. WRIT PETITION NO.133 OF 2005 Shaila Vijay Purohit .. Petitioner. V/s.

2 Commissioner of Income-tax, Kolhapur & Others .. Respondents. Mr.M.K. Kulkarni for the petitioner. Mr.A.S. Rao for the respondents. CORAM : V.C. DAGA & CORAM : V.C. DAGA & CORAM : V.C. DAGA & J.P. DEVADHAR, JJ. J.P. DEVADHAR, JJ. J.P. DEVADHAR, JJ. DATED : 14TH MARCH, 2005. DATED : 14TH MARCH, 2005. DATED : 14TH MARCH, 2005. P.C. : Heard learned counsel for the petitioner. We have examined the reasons recorded by the Income Tax Officer, Ward 1(2), Kolhapur before invoking the power of reopening of the assessment under Section 148 of the Income-tax Act. The petitioner vide letter dated May 31, 2004 (Annexure ‘B’ at page 35) has stated that the returns already filed under Section 139(1) be treated as return filed pursuant to the notice issued under Section 148 of the Income-tax Act. 2. Although it is contended by the revenue that the reopening is based on the material gathered during the course of Survey action, it is the case of the petitioner that no such material was found during the course of survey action. In our opinion, it will be open to the petitioner to raise all objections for reopening the assessment, before the assessing officer and the assessing officer is bound to dispose off the said objections before proceeding further in

3 the matter. 3. In this view of the matter, the petitions are dismissed in limine with no order as to costs. (V.C. DAGA, J.) (J.P. DEVADHAR, J.)

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