Facts of the Case

The petitioner, M/S Jay Bharat Maruti Ltd, filed a writ petition challenging the notice dated 30.08.2011 issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2007-08. The petition also challenged the order dated 28.01.2013, whereby the respondent rejected the petitioner’s objections raised against the reopening of the assessment.

The petitioner argued that the notice and subsequent reassessment were without jurisdiction and that the order rejecting their objections was a mere copy-paste exercise, lacking proper application of mind. The petitioner sought a detailed examination of the objections in accordance with law, citing GKN Driveshaft Ltd. vs. CIT (2003) 259 ITR 19 (SC).

Issues Involved

  1. Whether the notice under Section 148 for reassessment was valid.
  2. Whether the objections raised by the petitioner were properly considered.
  3. Whether the order dated 28.01.2013 demonstrated application of mind by the assessing officer. 

Petitioner’s Arguments

  • The notice under Section 148 was illegal and without jurisdiction.
  • Objections were submitted requesting reasons recorded for reopening and the sanction order.
  • Requested the opportunity to make detailed submissions both on facts and law, citing relevant case law (GKN Driveshaft Ltd. vs. CIT).
  • Highlighted that the order rejecting objections was verbatim reproduction of their submissions, showing non-application of mind. 

Respondent’s Arguments

  • The assessing officer claimed that the belief for reopening the assessment was in good faith and the reasons were genuine.
  • Referred to Sections 147 and 148 and relied on generic paragraphs quoting Supreme Court and High Court decisions.
  • The order was presented as sufficient without specifically addressing the objections raised by the petitioner. 

Court Findings / Order

  • The Court noted that the order dated 28.01.2013 was a cut-and-paste job, lacking application of mind.
  • Paragraphs copied from petitioner’s submissions were not even adjusted grammatically.
  • Observed that the assessing officer failed to deal with the objections substantively.
  • The Court set aside the order dated 28.01.2013 and remitted the matter to the respondent to pass a fresh order after properly considering the objections and giving the petitioner an opportunity of hearing.
  • The Court did not comment on the merits of the notice dated 30.08.2011; that issue remains open.

Important Clarifications

  • The Court emphasized that passing an order on objections is not an empty formality; proper application of mind is required.
  • Reiterated the principle in GKN Driveshaft Ltd. vs. CIT (2003) regarding reassessment proceedings and opportunity to be heard. 

Sections Involved

  • Section 147 – Income escaping assessment
  • Section 148 – Issue of notice for reassessment

Link to Download the Order - https://delhihighcourt.nic.in/app/case_number_pdf/2013:DHC:670-DB/RVE08022013CW7112013.pdf

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