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Section 148 of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 2003-04 - Assessee-company filed writ petition challenging notice issued to it under section 148 contending that original assessment had been completed after considering all materials on record and initiation of proceedings under section 147 was based on mere change of opinion and was, therefore, illegal, mala fide and arbitrary - Whether on receipt of reasons from Assessing Officer, proper course of action for assessee was to file objections to issuance of notice and Assessing Officer was bound to dispose of same by passing a speaking order - Held, yes - Whether therefore, without going into merits of case, assessee was to be directed to file objections before Assessing Officer who should dispose of same by passing a reasoned order before proceeding with assessment - Held, yes CASE REVIEW GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19/[2002] 125 Taxman 963 (SC) followed. CASE REFERRED TO GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19/[2002] 125 Taxman 963 (SC) [Para 5]. B. Poddar, A.K. Kashyap, S. Pandey, V. Pandey and P. Poddar for the Petitioner. K.K. Jhunjhunwala for the Respondent. JUDGMENT M.Y. Eqbal, J. - In this writ application the petitioner has challenged the notices dated 5-2-2007 and 16-4-2007 issued by the Assistant Commissioner of Income-tax, Circle-3, Ranchi purported to have been issued under section 148 and section 142(1) respectively of the Income-tax Act, 1961 calling upon the petitioner-assessee for filing return. 2. Petitioner is a limited company carrying on business of construction of dam canal, railways, roads etc. In September 2003, petitioner-assessee filed return for the year 2003-04. Petitioner's case is that return so filed was processed under section 143(1) of the Act and refund voucher of Rs. 20,48,390 was issued to the petitioner on the basis of refund order after adjustment of the demand for the assessment year 1997-98 and the said demand was duly approved by the Assistant Commissioner of Income-tax, Ranchi. However, on 7-2-2007 petitioner received two notices under section 148 of the Act issued by the…

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