Kausalya Maruthachalam Vs Additional/ Joint/ Deputy/ ACIT (Madras High Court)
Madras High Court held that in re-assessment proceedings the objections of assessee should be dealt in accordance with GKN Driveshafts principle. Here, all the proceedings are set aside since the GKN Driveshafts principle has not been strictly adhered to.
Facts- Post search proceedings under section 153C of the Income Tax Act, an assessment order u/s. 143(3) dated 24.12.2009 was passed. Post some further proceedings, assessment order u/s. 143(3) r.w.s 147 was passed on 23.12.2011. Thereafter, the writ petitioner was visited with a notice dated 31.03.2015 being a notice under Section 148 of IT Act for re-assessment and the same is assailed by the petitioner vide the present writ.
Conclusion- Held that the conclusion is, all proceedings post writ petitioner’s /assessee’s objections dated 23.11.2021 are set aside solely on the ground that GKN Driveshafts principle has not been strictly adhered to. The first respondent Assessing Officer shall proceed from this 23.11.2021 objection stage, pass a speaking order, complete the re-assessment as expeditiously as his business would permit and in any event within 12 weeks from today i.e., on or before 28.04.2022. Captioned writ petition is disposed of in above manner.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
