M/S T T K PRESTIGE LTD vs. THE DEPUTY COMMISSIONER OF INCOME TAX

PDF · subscribers
WP/1248/2015HC KarnatakaKAHC01000582201525 June 2015Bench: RAM MOHAN REDDY4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the order rejecting the petitioner's objections was not a speaking order and lacked proper reasoning. Such orders are essential to prevent arbitrariness and ensure fairness in decision-making.

What were the facts?

The petitioner received a notice for reassessment under Section 147 of the Income Tax Act. After the Assessing Officer provided reasons for reopening, the petitioner filed objections. The Assessing Officer then issued an order rejecting these objections without providing adequate reasons.

What were the issues?

Whether the order rejecting the assessee's objections to the reopening of assessment was a speaking order. Whether the reasons provided for rejecting the objections were sufficient and legally valid.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JUNE 2015 BEFORE THE HON’BLE MR. JUSTICE RAM MOHAN REDDY WRIT PETITION No.1248/2015 (T-IT)

BETWEEN:

M/S T.T.K PRESTIGE LTD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO.135, "BRIGADE TOWERS", 11TH FLOOR, BRIGADE ROAD, BANGALORE-560025. REPRESENTED BY ITS PA HOLDER, SRI. N. RADHAKRISHNAN. ... PETITIONER

(By Sri. DR. R.B KRISHNA, ADV.,)

AND

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 5(1) BANGALORE, 4TH FLOOR, RASTROTHANA BHAVAN, NO.14/3, OPP. RBI, NRUPATHUNGA ROAD, BANGALORE – 560 001. ... RESPONDENT

(By Sri. K.V ARAVIND, ADV.,)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE ISSUED BY THE RESPONDENT DTD 11.2.14 UNDER SECTION 148 OF THE ACT (ANNX-G) AS ALSO THE ORDER DTD 6.1.2014, ISSUED BY THE RESPONDENT REJECTING THE OBJECTIONS OF THE PETITIONER, AND PROCEEDING WITH THE REASSESSMENT (ANNX-K)

THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:

O R D E R

Petitioner, when visited with notice dated 11.02.2014, Annexure-G, of the Deputy Commissioner of Income Tax, Circle 12(4), Bangalore, invoking Section 147 of the Income Tax Act, for the assessment year 2009-10, is said to have been supplied the reasons for reopening the case by communication, dated 06.06.2014, Annexure-H, following which petitioner filed its objections, by way of a letter, dated 12.06.2014, Annexure-J, whereafterwards, the Deputy Commissioner of Income Tax, Circle 5(1)(1),

Bangalore, by communication dated 06.01.2015, Annexure-K, rejected the objection. Hence this petition.

2.

Dr.R.B.Krishna, learned counsel for petitioner, is correct in his submission that the communication dated 06.01.2015, Annexure-K, is bereft of reasons and is not a speaking order. “The giving of reasons in support of the conclusions by judicial and quasi judicial authorities when exercising initial jurisdiction is essential for various reasons. First it is calculated to prevent unconscious, unfairness or arbitrariness in reaching the conclusions. The very search for reasons will put the authority on the alert and minimize the chances of unconscious infiltration of actual bias or unfairness in conclusion.” This is the observation of the Apex Court in Woolcombers of India Ltd., vs. Woolcombers workers Union and another1.

1 AIR 1973 SC 2758

3.

The communication, Annexure-K, simply states that the objections are rejected, since the licence fee/logo is a “expenditure towards good will”. This, in my considered opinion, is a ‘conclusion’ and not a ‘reason’. In the circumstances, there is a need to interfere with the communication, Annexure-K.

4.

In the result, this petition is allowed. Annexure-K, communication dated 06.01.2015 is quashed and the proceeding remitted for consideration afresh over the petitioner’s objections, Annexure-J and to pass a speaking order, in accordance with law, assigning reasons, after extending an opportunity of hearing to petitioner, within a week from today. Petitioner to appear before the authority on 29.06.2015, at 3.00 pm without further notice.

Sd/- JUDGE

kcm

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →