1997 (3) TMI 69 - HC - Income Tax

Summary

Issues:
1. Jurisdiction of the Assessing Officer in proceeding with the assessment.
2. Compliance with notice requirements and the right to prefer a writ application.
3. Quashing of the notice dated February 5, 1997, by the High Court.
4. Direction for the completion of assessment by the assessing authority within a specified period.

Jurisdiction of the Assessing Officer:
The High Court dealt with an appeal regarding an order passed by a learned single judge. The single judge had dismissed a writ petition, stating that the Assessing Officer had jurisdiction to proceed with the assessment and had not pre-determined the nature of the transaction. The appellant contended that the officer had already made up her mind, seeking a stay on further proceedings. The court noted that the Assessing Officer had already received necessary information from the appellant, leading to the quashing of the notice in part. The court emphasized that the Assessing Officer should proceed with an open mind and finalize the assessment within eight weeks.

Compliance with Notice Requirements and Right to Prefer Writ Application:
The High Court addressed the issue of compliance with the notice requirements and the right to prefer a writ application. The court observed that the appellant had received the notice directing compliance by a certain date, which did not negate its right to file a writ application. The court allowed the appeal in part, quashed the notice with regard to specific details, and permitted the assessing authority to proceed with the assessment in accordance with the law. The court emphasized that the Assessing Officer should deal with any contentions raised before it by a reasoned order.

Quashing of the Notice by the High Court:
The High Court, after considering the urgency of the matter, quashed the notice dated February 5, 1997, in part. The court found that the information requested in the notice was already available in the documents submitted by the appellant. The court clarified that mere compliance with the notice did not take away the appellant's right to challenge it through a writ application. The High Court directed the assessing authority to complete the assessment within eight weeks from the date of communication of the order.

Direction for Completion of Assessment:
The High Court directed the assessing authority to proceed with and complete the assessment within eight weeks from the date of communication of the order. The court expected the Assessing Officer to approach the case with an open mind, free from any tentative views expressed earlier. The court disposed of the interlocutory application as infructuous and ordered no costs to be paid. The parties were to receive plain copies of the order for further action.