ALLANA COLD STORAGE LTD Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) All these four petitions are filed by companies which are sister concerns. They are all about the assessment orders passed by the first respondent-Income-tax Officer for the assessment year 2001-02. Rule on petitions. Reply has been filed by the first respondent. By consent of counsel for both the parties, the petitions are heard and decided at the admission stage itself.

(2.) The principal grievance of the petitioners is based on the judgment of the apex court in the case of GKN Driveshafts (India) Ltd. V/s. ITO, 2003 259 ITR 19. The law laid down by the apex court in this judgment is that when a notice under Sec. 148 of the Income-tax Act is issued, the noticee is expected to file the return and if he so desires he may seek reasons for issuing the notice. The apex court has laid down that on the assessee seeking such reason, "the Assessing Officer is bound to furnish the reasons within a reasonable time". Thereafter, the apex court has added that on receipt of reasons, the noticee is entitled to file objections and the Assessing Officer is bound to dispose of the same by passing a speaking order.

(3.) In the first matter, i.e., Writ Petition No. 2234 of 2006 filed by Allana Cold Storage Limited, the notice to reopen the assessment dated March 18, 2005, was served on the petitioner on March 22, 2005. The petitioner wrote letters seeking copy of reasons from time to time. These reasons were not supplied in response to these letters dated March 31, 2005, and April 8, 2005. Instead a notice under Sec. 143(2) was issued on July 29, 2005. The petitioners again requested for the reasons on August 17, 2005, in response to which another notice under Sec. 143(2) was served on December 21, 2005. Again the petitioners sought reasons by letter dated December 30, 2005, and once again a notice under Sec. 143(2) was served on February 21, 2006. Thus, the first respondent though aware of the fact that the petitioners were seeking reasons for reopening the assessment has not supplied the reasons. This went on until March 21, 2006, when practically at the end of the assessment year the reasons were furnished. The petitioner filed their objections on March 23, 2006, and requested for personal hearing. What the first respondent has done is that he straightway passed the assessment order under Sec. 143(3) which also includes the decision on the objections filed by the petitioners.