2009 (11) TMI 581

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....carrying on business in sand quarrying under a licence granted to him. On the basis of a survey conducted at the premises of a few persons, the Department passed assessment order on 3rd Jan., 2005 for the block period 1st April, 1996 to 12th Dec, 2002 on the said Ganesan. Thereafterwards, a notice dt. 10th Feb., 2005 was issued by the second respondent to the petitioners under section 158BD of the IT Act, 1961, calling upon them to file a return of the total income. Thereupon, the petitioners filed returns of income in their individual capacity and had also filed sworn statements stating that they had no involvement in any association of persons (AOP). On 28th Feb., 2007, assessment orders were passed under s. 158BD of the Act, assessing a ....

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....ctions to the proposal to assess the income, the petitioners sent objections dt. 21st Feb., 2007 denying the assessment as an AOP and a further letter dt. 21st March, 2007 seeking copy of the block assessment order, if any, passed against the AOP, so that the petitioners could take recourse to the Tribunal. Since there was no response therein, the petitioners believed that there were no proceedings. However, when the petitioners received a notice dt. 28th July, 2008 treating the petitioners as members of the AOP, calling upon them to deposit a sum of Rs. 1,19,95,200 within 15 days from the receipt of the notice followed by a summons dt. 24th Nov., 2008 requiring the petitioner's personal attendance, the petitioners replied vide letter dt. 1....

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....e not produced the list of members of association. The reliance on the aforesaid provision will have relevance to a case where the status remains as an admitted one. As the petitioners deny their status to be assessed as an AOP contending that there is no involvement by them in the said association, the reliance placed to the abovesaid provision of law by the Revenue cannot be sustained. Since the petitioners challenge the very status of an AOP and deny their involvement, unless they are given a notice as to the assessment made thereon, thereby fastening the liability on behalf of the association, the valuable rights of an appeal given to an aggrieved assessee would remain meaningless. The petitioners herein have denied their involvement in....