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[2008] 305 ITR 124 (Punjab & Haryana) HIGH COURT OF PUNJAB AND HARYANA Vidya Sagar v. Income-tax Officer RAJESH BINDAL, J. CWP NO. 7426 OF 1987 SEPTEMBER 20, 2006 Section 148 of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for Where petitioner had not filed reply to notice issued under section 148, even though return of income had been filed in pursuance of said notice, writ court could not interfere as assessee had to follow procedure laid down by Supreme Court in GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19 Where in pursuance of notice issued under section 148, petitioner filed the return of income but did not file any reply taking any objections against initiation of proceedings under section 148, and challenged said notice by filing writ: Held thatthe Supreme Court in GKN Driveshafts (India) Ltd. v. ITO[2003] 259 ITR 19 when a notice under section 148 of the Income-tax Act is issued, the proper course of action for the noticee is to file a 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 notice 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. Once the Supreme Court has laid down the procedure to be followed in the cases of objections to notices issued under section 148, the petitioner was bound to follow the same and no interference at this stage was called for. CASE REVIEW GKN Driveshafts (Iidia) Ltd. v. ITO [2003] 259 ITR 19 (SC),Kapur Sons Steels (P.) Ltd. v. Asst. CIT [2004] 266 ITR 478 (Punj. & Har.), Saraswati Industrial Syndicate Ltd. v. Union of India[2003] 185 CTR 587 (Punj. & Har.) and Arvind Mills Ltd. v. Asstt. CWT (No. 2) [2004] 270 ITR 469 (Guj.) followed & relied upon. Yogesh Putney for the Respondent. JUDGMENT Rajesh Bindal, J.-This is a petition, whereby the petitioner has invoked the extraordinary jurisdiction of this court under article 226/227 of the Constitution of India praying for quashing of the notice dated June 2, 1987, (annexure P-4), issued under section 148 of the…

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