Court orders petitioner to seek reasons for assessment re-opening under Income Tax Act

The court directed the petitioner to file a representation along with a copy of the order to the respondent, requesting reasons for re-opening the assessment under Section 147 of the Income Tax Act, 1961. The petitioner was granted fifteen days to submit objections, and the respondent was required to pass a speaking order within two weeks of receiving the objections. No coercive action was to be taken against the petitioner until the proceedings were finalized, contingent on compliance with the directive. The writ petition was disposed of with no costs, and the connected Miscellaneous Petition was closed.

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Issues:
Challenge to re-opening proceedings under Section 147 of the Income Tax Act, 1961 based on change of opinion.

Analysis:
The petitioner challenged the re-opening proceedings under Section 147 of the Income Tax Act, 1961, arguing that it amounted to a change of opinion as the materials available during the scrutiny assessment were the sole basis for re-opening. The court noted that the petitioner had not sought the reasons for re-opening the assessment. Referring to the decision in GKN Drive Shafts (India) Limited vs. Income Tax Officer, the court directed the petitioner to file a representation along with a copy of the order to the respondent, requesting the reasons for re-opening. The petitioner was granted fifteen days to submit objections, and the respondent was required to pass a speaking order within two weeks of receiving the objections.

The court emphasized that no coercive action should be initiated against the petitioner until the proceedings were finalized, provided the petitioner complied with the directive to file a representation within the stipulated time. The writ petition was disposed of with no costs, and the connected Miscellaneous Petition was closed.

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