NORTHERN STRIPS LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE present writ petition seeks quashing of the notice dated 27.3.2008 and the order dated 10.11.2008 passed by the respondent under Section 147/148 of the Income Tax Act, 1961.

(2.) THE petitioner company is engaged in the business of manufacturing of cutting and slitting of polyster films. It has its industrial undertaking at Silvasa which is a notified backward area as specified in the Eighth Schedule of the Income Tax Act. For the Assessment Year 2001 -2002, the petitioner company filed a return of income under Section 139(1) declaring an income of Rs. 3,37,167/ - under the normal provisions of the Act and an income of Rs. 2,58,98,479/ - under Section 115JB of the Act. The petitioner company claimed a deduction of Rs. 2,18,17,975 under Section 80IA of the Act. The return of income was processed under Section 143(1) and selected for scrutiny by issuance of notice under Section 143(2) of the Act.

(3.) IT is thereafter that the impugned notice was issued to the petitioner under Section 148 of the Act dated 27.3.2008 and to which by letter dated 21.4.2008, the petitioner company requested the respondent to furnish a copy of the reasons recorded for initiating proceedings under Section 147 of the Income Tax Act. Through the letter dated 29.4.2008, the respondent supplied the reasons recorded to the petitioner company for initiating proceedings under Section 147/148 of the Act. The petitioner by letter dated 22.10.2008, filed the objections to the initiation of the reassessment proceedings on receiving the copy of the reasons. On 10.11.2008, the respondent passed an order dismissing the objections raised by the petitioner company to the initiation of reassessment proceedings. Hence this writ petition.