INCOME TAX ACT, 1961

--Reassessment--Notice under section 148 Objections against reason recorded--Assessee-firm was engaged in jewellery. During the course of survey managing partner admitted additional income of Rs. 2.50 crores being one crore for advance tax and other for Rs. 1.50 crores. Assessment was completed notice under section 148 was issued for relevant assessment year for making reassessment. On writ petition single judge came to observed that case was at notice stage and objection(s) against reasons recorded to be filed by assessees to take the proceeding at its logical conclude. Since the time for furnishing objections was over the judge granted a further time of one month to file objections. Held: As stand of revenue was that objection would be certainly considered, objection which assessee had filed must necessarily be considered and reason must be given.

Court may not be justified in this proceedings to hold that exhibit P6 notice is without jurisdiction. This observation is made because the learned single judge has permitted the appellant to file objections to exhibit P6 notice and it is for the assessing officer to take a decision after considering the objections. It is not open is made to veto further action pursuant to exhibit P6 on the basis of the writ petition filed by the appellant. [Para 16] This is a case where the appellant had not cared to file any objection to exhibit P6. It was in the exercise of discretionary jurisdiction that the Single Judge permitted the appellant to file objections. In fact, the stand of the revenue is that the objections will certainly be considered. In such circumstances, the objections which the appellant has filed must necessarily be considered and reasons must be given. [Para 20]

Income Tax Act, 1961 Section 147

Income Tax Act, 1961 Section 148

In the Kerala High Court

K. M. Joseph & K. Harilal, JJ.

Alappat Jewels v. Asstt. CIT

Writ Appeal No. 1706 of 2012

A.Y. 2006-07

9 January, 2013