Jagdish Preshad Gupta vs Joint Commissioner of Income Tax

We have heard the learned counsel appearing for the petitioner at some length. The petitioner claims two reliefs in this writ petition. Firstly, challenge to the order of the assessment dt. 30th March, 2005 after serving notices upon the petitioner u/s 148 of the IT Act, 1961 (hereinafter referred to as the Act), the order of assessment was passed making certain computations and passing an order of tax interest under Sections 234A, 234B and 234C and even initiated the penalty proceedings u/s 271(1)(c) of the Act.

Secondly, the petitioner has prayed that in relation to asst: yrs. 1998-99 to 2000-01 and 2002-03, no reasons have been supplied to the assessed despite a specific request made on 8th Dec., 2004 and this action of the respondent is contrary to the judgment of the Supreme Court in the case of GKN Driveshafts (India) Ltd. Vs. Income Tax Officer and Others, . As far as second relief is concerned we have no doubt in our mind that the petitioner was entitled to receive reasons recorded by the authorities.

Learned counsel appearing for the respondent states that the reasons will be supplied to the assessed within two weeks from today. Once these reasons are supplied the assessed is at liberty to proceed in accordance with law for filing objections or taking such other action as is permissible to him in law. As far as this relief is concerned no further direction is called for. Challenge to the assessment order dt. 30th March, 2005 is primarily founded on the ground that it is a mere change of opinion and as such no jurisdiction is vested in the AO to pass such an order and the order is without jurisdiction.

We are not interested with this contention. The order of assessment was passed after the objections were filed by the assessed to the notice u/s 147 of the Act considered by the AO. The objection being raised in this writ petition can consequently be raised before the CIT(A) by the assessed by filing a statutory appeal available to him under the provisions of the Act. Without commenting upon the merits of the order and the contentions raised by the petitioner before us in relation to the writ petition, we dispose of this writ petition with liberty to the petitioner to file an appeal in accordance with law. The petitioner would be at liberty to take up all the contentions raised in this writ petition.

As far as first prayer is concerned, the learned counsel for the petitioner without prejudice to his rights to prefer an appeal in accordance with law wishes to withdraw this petition at this stage. Dismissed as withdrawn. Liberty as prayed granted.