- (1.) The Court: Let the affidavit of service filed in Court today be taken on record.
(2.) Having heard the learned advocates for the parties and upon perusing the instant application, it appears that the subject matter of challenge in the instant writ petition is a notice dated 27th March, 2015, issued by the Assessing Officer under section 148 of the Income Tax Act, 1961. Immediately upon receipt of the said notice, the petitioner by a letter dated 13th April, 2015, requested the concerned Income Tax Officer, inter alia, to supply reasons for issuance of notice under section 148 of the Income Tax Act, 1961. Consequently, the concerned Income Tax Officer provided reasons for issuance of the notice under section 148. The petitioner replied to the same by providing a detailed response. The response, however, was not considered, which has led to filing of the instant writ petition.
(3.) The issue in the instant case is whether the Assessing Officer is bound to dispose of the petitioner's response in respect of the reasons provided for issuance of notice under section 148 of the Income Tax Act, 1961. The answer is, the Assessing Officer is bound to consider and dispose of the petitioner's response by passing a speaking order, which evidently has not been done in the facts of the instant case. This issue has been squarely covered by the observations made by the Supreme Court, in the case of GKN Driveshafts (India) Ltd. vs. Income Tax Officer & Ors., reported in (2003) 1 Supreme Court Cases 72 (para 5), which reads as follows: "We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under Section 148 of the Income Tax Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notices. The assessing officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the assessing officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons have been disclosed in these proceedings, the assessing officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment in respect of the abovesaid five assessment years." ;