Kesar Terminals & Infrastructure Ltd Vs DCIT (Bombay High Court)
Bombay High Court addressed the case of Kesar Terminals & Infrastructure Ltd Vs DCIT, challenging a combined reassessment order dated March 31, 2022. The petitioner contested the validity of the order, which simultaneously disposed of objections to reopening assessments under Section 148 of the Income Tax Act and assessed income. The petitioner argued that the procedure violated principles of natural justice, relying on established precedents such as GKN Driveshaft (India) Ltd Vs ITO and Asian Paints Ltd Vs DCIT.
The petitioner pointed out that reopening notices must adhere to a mandated sequence: objections raised by the assessee must be addressed independently, allowing time for remedial action before reassessment. Despite repeated requests, the assessing officer failed to separately dispose of the objections and proceeded with a combined order. Citing the Supreme Court’s decision in GKN Driveshaft, the petitioner emphasized the importance of this procedure to ensure fairness and due process.
The respondent countered by asserting that the petitioner had already filed an appeal against the order, suggesting that the petition should not be entertained. However, the petitioner clarified that the appeal was filed only to prevent limitation issues and reiterated that the reassessment order was fundamentally flawed due to procedural lapses. Precedents such as Fomento Resorts & Hotels Ltd Vs ACIT and KSS Petron Private Ltd Vs ACIT were cited to highlight similar cases where combined orders were deemed invalid for jurisdictional and procedural non-compliance.
