RAJAN NANDA Vs. ASSTT. COMMISSIONER OF INCOME

JUDGEMENT

(1.) THE writ petitioner challenges the notice dated 31.3.2006 whereby the revenue sought to reopen the assessment in respect of the assessment year 1999 -2000. The grievance in this proceeding under Article 226 is that (a) the assessing officer did not furnish "reasons to believe" under Section 148 of the Income Tax Act, 1961 ('Act' for short) within reasonable time and did so only on 5.12.2006 and (b) the assessing officer did not afford any opportunity to the writ petitioner while framing the reassessment through the order dated 26.12.2006 on the same day on which he passed the order disposing of the objections. Ld. counsel for the writ petitioner at the outset mentioned that even though the reassessment order has not been challenged in appeal, this Court is not deprived of its jurisdiction under Article 226 to set aside the impugned order including the notice dated 31.3.2006 as well as the order disposing of the objections (26.12.2006); and the reassessment order dated 29.12.2006. It is submitted that this is because the present writ petition was filed earlier and the appeal was preferred during the pendency - a fact brought to the notice of this Court. The appeal was filed without prejudice to the writ petitioner's rights. Ld. counsel for the parties relied upon the basic ruling of the Supreme Court in G.K.N. Driveshafts (India) Ltd. Vs. Income Tax Officer & Ors., : (2003) 259 ITR 19(SC) where the Supreme Court held as under :

(2.) LD . counsel for the petitioner also relied upon other decisions such as Sita World Travels Vs. Deputy Commissioner of Income Tax : (2005) 274 ITR 186 Del, Janki Export International Vs. UOI : (2005) 278 ITR 296 (Del.), S. Ujjal Singh Vs. ITO WP(C) 549/1986, Kamlesh Sharma Vs. ITO : (2006) 287 ITR 337 (Del.).