Mangalam Publications (India) (P) Ltd. vs Deputy Commissioner of Income Tax

C.N. Ramachandran Nair, J.—Petitioner is challenging Ext. P10 order which is a detailed note issued by the AO justifying reopening of IT assessment completed for the year 1999-2000 u/s 147 of the IT Act. Even though the Supreme Court has in the decision reported in GKN Driveshafts (India) Ltd. Vs. Income Tax Officer and Others, held that assessee is entitled to get reasons for reopening of assessment and this Court in the judgment in WP No. 26551 of 2004, dt. 10th Sept., 2004 further held that any contest on merits against the validity of reassessment should be made through an appeal against reassessment after completion of the assessment. Therefore, petitioner''s objections to Ext. P10 and further objections if any will be considered in detail in reassessment proceedings and it will be open to the petitioner to challenge the grounds for reopening and the procedure followed in appeal against assessment and the appellate authority will be absolutely free to go into the validity of reassessment on any ground decided against the petitioner whether in reassessment or by separate order. Writ Petn. is, therefore, closed leaving freedom to the petitioner to raise objections in the course of reassessment, and to challenge the reassessment in appeal.