We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under s.148 of the IT 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 AO 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 AO 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 AO 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.”

HONOURABLE THE CHIEF JUSTICE SHRI MADAN B.LOKUR

AND

HONOURABLE SHRI JUSTICE SANJAY KUMAR

WRIT PETITION NO.3046 OF 2012

       DATED 27^TH MARCH, 2012

Between

M/s.Andhra Pradesh Beverages Corporation Ltd.,

9 & 10, Eastern M.J.Road,

Nampally, Hyderabad,

Rep. by its Managing Director,

Dr.Sameer Sharma.

                             …Petitioner

AND

The Income-Tax Officer,

Ward 1(1), 3^rd Floor, Aayakar Bhavan,

Basheerbagh, Hyderabad.

                                                …Respondent

            

HONOURABLE THE CHIEF JUSTICE SHRI MADAN B.LOKUR

AND

HONOURABLE SHRI JUSTICE SANJAY KUMAR

WRIT PETITION NO.3046 OF 2012

ORDER: (PER HON’BLE THE CHIEF JUSTICE SHRI MADAN B.LOKUR)

          The Revenue sought to reopen the assessment of the petitioner for the assessment year 2005-06.

2.       The Revenue gave its reasons to the petitioner for reopening the assessment and the petitioner filed its objections.

3.       Without passing any speaking order on the objections, the Revenue straight away passed the impugned assessment order.

4.       This is clearly contrary to the decision rendered by the Supreme Court in GKN DRIVESHAFTS (INDIA) LTD. v. INCOME TAX OFFICER & OTHERS[1]. Paragraph 5 of the said decision reads as under:

“5.      We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under s.148 of the IT 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 AO 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 AO 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 AO 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.”

5.       Faced with this situation, learned counsel for the Revenue says that a speaking order will be passed by the Revenue on the objections filed by the petitioner within a period of three weeks.

6.       In view of the above, the impugned assessment order is set aside and liberty is granted to the Revenue to pass a speaking order within four (4) weeks from today.

7.       Accordingly, the writ petition is disposed of.

8.       Miscellaneous applications are also disposed of.

          ( MADAN B.LOKUR, CJ )

                    ( SANJAY KUMAR, J )

27^TH MARCH, 2012.

VGSR

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[1]       (2003) 259 ITR 19 (SC)