MENCK GMBH Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This petition under Article 226 of the Constitution of India challenges the order dtd. 31/10/2018 passed by the respondent no.1 - the Assistant Commissioner of Income Tax under Sec. 147 of the Income Tax Act, 1961 (the Act). By the impugned order, the Assessing Officer - respondent no.1 has dropped the assessment proceedings initiated under Sec. 147 of the Act.

(2.) It is the grievance of the petitionmer that once the Assessing Officer has issued a notice for reassessment under Sec. 147/148 of the Act and the assessee has not opposed the same, then it is not open to the Assessing Officer to drop the same. This dropping of proceedings, the petitioner submits is not permissible.

(3.) It is an agreed position between the parties that the issue raised herein stands concluded by the decision of this Court in case of K. Sudhakar S. Shanbhag Vs. Income Tax Officer (2003) 126 Taxman 476 in favour of the respondent. In the above case, this Court has held that dropping of re assessment proceedings by the Assessing Officer under Sec. 147 of the Act, even in the absence of the assessee challenges the notice under Sec. 147/148 of the act, is justified. This Court emphasized that the proceedings for reassessment under Sec. 147 of the Act is for the benefit of the Revenue.