KAMALA MUTHIAH Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This writ appeal has been directed by the assessee against the order dated 26.07.2019 passed in W.P.No.26276 of 2007.

(2.) The respondent had issued a notice dated 28.03.2007 under Section 148 of the Income Tax Act, reopening the assessment of M/s.M.Ct.M. Corporation Private Limited for A.Y.2000-2001. In response to the same, the appellant had sent a reply dated 05.04.2007 stating that for A.Y.2000-2001, the Company was not in existence, for which, the respondent had sent communication on 16.05.2007 providing reasons for reopening of assessment for the Assessment Year 2000-2001. On receiving the above communications, the appellant on 31.05.2007 sent his objections for reopening by the Assessing Officer. The Assessing Officer had sent a letter on 18.07.2007 rejecting the objections raised by the appellant/assessee. The appellant, challenging the notice issued under Section 148 of the Income Tax Act and also the rejection order of the Assessing Officer dated 18.07.2007, had filed the writ petition in W.P.No.26276 of 2007. The learned single Judge, after considering the submissions made on both the parties, passed the order dated 26.07.2019, wherein, liberty was given to the appellant to raise further objections before the Assessing Officer to the notice dated 28.03.2007 issued under Section 148 of the Income Tax Act and on receipt of such objections, the Assessing Officer was directed to deal with it in accordance with law, and after giving due opportunity to the appellant, final decision has to be taken. Challenging the above order passed by the Writ Court dated 26.07.2019, the assessee has filed this writ appeal.

(3.) The learned counsel appearing for the appellant would submit that the appellant's Company i.e. M/s.M.Ct.M. Corporation Pvt. Ltd., for which the Assessing Officer sought to reopen the assessment for Assessment Year 2000-2001 was demerged into M.Ct.M. Global Investment Privatae Limited and Sivagami Holdings Private Limited by sanction of this Court in Company Petition w.e.f. 01.04.1999 vide order dated 10.12.1999 in C.P.Nos.105 to 107 of 1999. The said fact was also communicated to the Assessing Officer by letter dated 29.11.2000 stating that M.Ct.M. Corporation Private Limited had not filed Income Tax for Assessment Year 2000-2001 providing details of demerged company and their respective Assessing Officer. The learned counsel would further submit that in response to the notice issued under Section 148 of the Income Tax Act, the appellant on 05.04.2007 sent a reply reiterating the non-existence of the Company and enclosed the copy of the order of this Court dated 10.12.1999. Despite the same, the Assessing Officer without considering the said fact and the objections raised by the appellant, had passed the rejection order. The learned counsel has placed his reliance on the decisions reported in (2019) 416 ITR 613 (SC) and also (1961) 41 ITR 191 (SC), (2017) 390 ITR 10 (SC), (2003) 264 ITR 566 (SC), (1968) 67 ITR 11 (SC), (2000) 241 ITR 0672 (Mad), (2004) 267 ITR 200 (Bom) and (2018) 404 ITR 10 (SC). The learned Single Judge had also not appreciated the facts brought to the knowledge of the Writ Court and instead of setting aside the orders of the Assessing Officer impugned in the writ petition, passed the order dated 26.07.2019 issuing direction to the Assessing Officer to consider the objections to be raised by the appellant, which would not at all suffice to give an end to the matter on hand.