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Judgment
The petitioner assails a notice under Section 148 of the Income Tax Act, 1961. Learned Advocate appearing for the petitioner submits that, there is no
basis for issuance of the notice. Change of opinion by the Assessing Officer is no ground for reopening assessment and invoking Section 148 of the
Act of 1961. Moreover, the notice is barred by the laws of limitation. The Assessing Officer, therefore, has no jurisdiction to issue such notice.
A writ petition assailing such an action of the department is maintainable. Reliance is placed of a Hon’ble Supreme Court decision dated
December 8, 2016 rendered in Civil Appeal No(s). 11189 of 2016 (Jeans Knit Private Limited, Bangalore Versus The Deputy Commissioner of
Income Tax, Bangalore, and Ors.) Learned Advocate appearing for the petitioner draws the attention of the Court to an order of provisional
attachment dated April 16, 2018. He submits that, the basis for the order of attachment has not also been made known to the petitioner.
Learned Advocate appearing for the department submits that, the petitioner had raised an objection to the notice dated April 4, 2018 invoking the
provisions of Section 148 of the Act of 1961. In such objection, the petitioner had asked for hearing. In response thereto, a date of hearing was fixed
on April 25, 2018. In the meantime, however, the petitioner has filed the writ petition. He submits that, the petitioner is entitled to a hearing, on the
objection raised, in respect of the proceedings under Section 148.
The writ petition is premature at this stage, since the department is yet to decide on the objection raised. So far as the order of attachment is
concerned, he submits that, the provisions of Section 281(B) of the Act of 1961 have been invoked. It is open to the petitioner to raise objections with
regard thereto and that, if the objections are raised the same would be decided in accordance with law.
I have considered the rival contentions of the parties and the materials made available on record. In the instant case, the department seeks to invoke
Section 148 of the Act of 1961. Such intention of the department was communicated to the petitioner by a notice dated April 4, 2018. The petitioner
had responded thereto by filing an objection on April 13, 2018. In that objection, the petitioner had asked for a hearing. The department in response to
such objection has fixed a date of hearing. Apparently, the petitioner did not avail of such opportunity.
The necessity to invoke Section 148, the objections thereto including the point of limitation raised would be decided if the authorities are directed to
dispose of the same, after affording the parties an opportunity of hearing. In the interest of justice, therefore, it would be appropriate to direct the
authorities to allow the petitioner, one opportunity of hearing, on the objection raised to the notice under Section 148 of the Act of 1961, within a period
of seven days from date. It is open to the authorities to decide on the notice dated April 4, 2018, and the reply thereto dated April 13, 2018 in
accordance with law. The reasoned order of the authorities will be communicated to the petitioner immediately thereafter.
So far as the order of attachment is concerned, I find that, the provisions of Section 281(B) of the Act of 1961 have been invoked. The department
will furnish the relevant materials on the basis of which the provisions of Section 281(B) of the Act of 1961 have been invoked to the petitioner within
one week from date.
The petitioner is at liberty to raise objection, if it chooses to do so, within one week thereafter. The authorities will determine on objection, in
accordance with law, within a fortnight from date. With the aforesaid directions, WP No.4863(W) of 2018 is disposed of. No order as to costs. Urgent
certified website copies of this order, if applied for, be made available to the parties upon compliance of the requisite formalities.