PEERLESS GENERAL FINANCE Vs. COMMISSIONER OF INCOME

JUDGEMENT

(1.) The Court :- The petitioner assails a notice under Section 148 of the Income Tax Act, 1961 proposing to reopen the assessment year 1999-2000. The reasons for such reopening is also under challenge. The final order dated September 22, 2009 negating the objections raised by the petitioner to such reopening is also under challenge in the present writ petition.

(2.) Learned senior advocate appearing in support of the writ petition submits that, as appearing from the averment made in the affidavit-in-opposition, the impugned notice under Section 148 was issued without the prior approval of the higher authority as contemplated under the Act of 1961. In this regard, he draws the attention of the Court to the relevant averment made in the affidavit-in-opposition.

(3.) Referring to the reasons for invocation of the provision of Section 148 of the Act of 1961, as supplied by the department, he submits that, none of the reasons given by the department would withstand judicial scrutiny. The first ground is with regard to the return to certificate holders and the treatment of the account in relation thereto. He submits that, the detail with regard to return to certificate holders were disclosed in the annual balance sheet of the petitioner. He draws the attention of the Court to the balance sheet as at March 31, 1999 and the notes on account appended thereto which forms the part of the balance sheet. He submits that, the balance sheet together with the notes which are an integral part of such balance sheet were placed before the assessing officer for his consideration. He refers to the assessment order for the assessment year 1999-2000 and submits that, such head was looked into and considered by the assessing officer. In fact, queries were raised with regard to such head in the assessment proceeding. The petitioner replied thereto. He draws the attention of the Court to the notice under Section 148(1) of the Act, 1961 issued by the department in this regard and the reply thereof given by the petitioner. He also refers to the order of assessment for the relevant assessment year. He submits that, return to certificate holders and the treatment with regard thereto was considered by the assessing officer in his order dated March 26, 2002. Therefore, it cannot be said that the petitioner is guilty of withholding any relevant material or non- supplying the same to the assessing officer or misleading the assessing officer in any manner whatsoever. The pre-condition for invocation of Section 147 of the Act of 1961 does not stand satisfied so far as such ground is concerned.