M/S Toyota Motor
Corporation Vs. Commr. of Income Tax [2008] INSC 1422 (25 August 2008)
Judgment
CIVIL APPELLATE
JURISDICTION CIVIL APPEAL NO. 5313 OF 2008 (Arising out of SLP(C) No.21772/2008
(CC No.11258/2008) Versus
Dr. ARIJIT PASAYAT,J.
Heard learned counsel
for the petitioner.
Delay condoned.
Leave granted.
We are not inclined
to interfere with the impugned order of the High Court.
The High Court has
held that the Assessing Officer had disposed the proceedings stating the
penalty proceedings initiated in this case u/s 271 C read with Section 274 of
the Income Tax Act, 1961 are hereby dropped. According to the High Court, there
was no basis indicated for dropping the proceedings. The Tribunal referred to
certain aspects and held that the initiation of proceedings under Section 263
of the Income Tax Act, 1961 (in short, the I.T.Act) was impermissible when
considered in the background of the materials purportedly placed by the
assessee before the Assessing Officer. What the High Court has done is to
require the Assessing Officer to pass a reasoned order. The High Court was of
the view that Tribunal could not have substituted its own reasonings which were
required to be recorded by the Assessing Officer. According to the assessee all
relevant aspects were placed for consideration and if the officer did not
record reasons, assessee can not be faulted.
We do not think it
necessary to interfere at this stage. It goes without saying that when the
matter be taken up by the Assessing Officer on remand, it shall be his duty to
take into account all the relevant aspects including the materials, if any,
already placed by the assessee, and pass a reasoned order.
The appeal is
dismissed with the aforesaid observations.
......................J.
(Dr.Arijit Pasayat)
......................J.
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