FIRE CHALLENGER Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD the arguments of Mr. A. Thiagarajan, learned Senior Counsel leading Mr. S. Janarthanam, learned counsel appearing for the petitioner and Mr. J. Narayanasamy representing Mrs. Pushya Sitaraman, learned Standing Counsel representing the respondent and have perused the records.

(2.) THE challenge in this writ petition is to the Demand Notice dated 22.5.2007 issued by the respondent Assistant Commissioner of Income Tax wherein and by which the petitioners were given an Assessment Order assessing the liability of the tax payable at Rs. 1,65,10,039/- and also with liberty to proceed to take penal action in terms of Section 271(1)(c) of the Income Tax Act [for short, 'I.T. Act']. THE petitioners, though have a remedy by way of appeal to the Commissioner of Income Tax, have not availed the same on the ground that there has been a gross violation of laws and legal principles by the authorities under the power of the Appellate Commissioner under Section 246(a) of the I.T. Act. was also restricted.

(3.) IN obedience to the orders passed by this Court, the respondents by a proceedings dated 22.02.2007 furnished the reasons for reopening the assessment. It is useful to extract the said communication in extenso for the purpose of better appreciation of the facts involved in the case:--