Court Overturns Assessment Order for Failure to Address Objections

The court set aside the assessment order and demand notice issued under Section 147 r/w 143(3) of the Income-tax Act, 1961 for the assessment year 2009-10. The petitioner's challenge was upheld as the court found that the respondent had failed to address the objections raised before passing the reassessment order, as required by law. The court referred to previous judgments emphasizing the necessity of addressing objections before making an assessment decision. The petitioner's writ petition was allowed, permitting the Assessing Officer to proceed lawfully, with all parties retaining their rights for future legal actions.

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Issues:
Challenge to order under Section 147 r/w 143(3) of the Income-tax Act, 1961 and demand notice for assessment year 2009-10.

Analysis:
The petitioner challenged the order passed under Section 147 r/w 143(3) of the Income-tax Act, 1961, and the demand notice issued for the assessment year 2009-10. The main argument presented was that the objections filed by the petitioner in response to the notice issued under Section 148 of the Act had not been addressed by the respondent-Authority before the reassessment order was passed. The petitioner contended that a speaking order disposing of the objections is mandatory, citing the Judgment of the Hon'ble Apex Court in the case of GKN Driveshafts (India) Ltd. v. Income tax Officer (2003) 259 ITR 19 (SC) and a previous order of the High Court in W.P.No.4679/2018.

The respondent's counsel did not dispute the argument raised by the petitioner. Referring to a previous judgment of the High Court in W.P.No.4679/2018, the court held that passing an assessment order without addressing the objections raised after the notice under Section 148 of the Act is impermissible. The court relied on the Division Bench Judgment in the case of M/s Deepak Extrusions Pvt. Ltd. v. The Deputy Commissioner of Income Tax and set aside the impugned assessment order and demand notice.

Consequently, the court ruled that the impugned assessment order and demand notice could not be upheld and were set aside. The writ petition filed by the petitioner was allowed, but the Assessing Officer was permitted to proceed with the matter in accordance with the law. The judgment concluded by stating that all rights and contentions of the parties were left open for further legal proceedings.

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