2018 (5) TMI 591 - HC - Income Tax

Court allows reconsideration of objections to Income Tax Notice under Section 148 for AY 2012-13

The court set aside the Deputy Commissioner of Income Tax's order rejecting the petitioner's objections to a Notice issued under Section 148 of the Income ... Reopening of assessment - period of limitation - consideration of petitioner's objections - Held that:- As agreed position between the parties that the order disposing of the objections dated 1st November, 2017 be set aside and the petitioner's objections be restored to the Assessing Officer for fresh consideration and disposal in accordance with law. The petitioners are at liberty to file additional submissions / objections to the reasons in support of the impugned Notice dated 29th March, 2017. Mr. Mistri, learned Senior Counsel appearing for the petitioner, on instructions, states that the fresh objections would be filed within a period of two weeks from today. The time to complete the assessment consequent to the reopening of the Notice would have expired on 31st December, 2017. However, in view of an adinterim stay granted on 15th December, 2017 by this Court, the time to complete the assessment stood extended Issues involved:Challenge to Notice under Section 148 of the Income Tax Act, 1961 for reopening assessment for Assessment Year 2012-13 and rejection of objections to the notice by Deputy Commissioner of Income Tax.Analysis:The petition challenges a Notice dated 29th March, 2017 issued under Section 148 of the Income Tax Act, 1961, seeking to reopen the assessment for Assessment Year 2012-13, as well as the Order dated 1st November, 2017 passed by the Deputy Commissioner of Income Tax rejecting the petitioner's objections to the reasons supporting the notice. The parties agreed to set aside the order disposing of the objections and restore the petitioner's objections to the Assessing Officer for fresh consideration and disposal in accordance with the law. The petitioners were granted the liberty to file additional submissions or objections within two weeks. The Revenue's Counsel assured that the Assessing Officer would dispose of the objections within four weeks from the filing of further objections by the petitioners. Consequently, the order dated 1st November, 2017 was set aside by consent.The time limit for completing the assessment following the reopening notice would have expired on 31st December, 2017. However, due to an ad-interim stay granted on 15th December, 2017, the time for assessment completion was extended. The ad-interim stay remained in effect, and considering the time required for filing further objections, disposing of objections, and subsequent action by the Assessing Officer, the reopening notice dated 29th March, 2017 was stayed for an additional 10 weeks from the current date. It was emphasized that the jurisdiction to refer the petitioner's case to a Transfer Pricing Officer would only arise if the Assessing Officer decided against the petitioners after considering their objections.In conclusion, the petition was disposed of in accordance with the agreed terms, setting aside the order rejecting the objections and allowing for fresh consideration by the Assessing Officer.