2014 (12) TMI 1274 - HC - Income Tax

Reopening of assessment - as per assessee already income tax return is filed for the Assessment Year 2006- 07 which is well within time and the same has been accepted by the respondent-Authority - Held that - As per Annexure-D there is an assessment order passed, since the petitioner did not file another return as sought for by the respondent-Authority under Section 148 of the Act. It is submitted by the learned counsel for the respondent-Authority that the reassessment made by the Revenue could be challenged before the Appellate Authority. Hence, it is too premature for the petitioner to approach this Court. The reasons to be assigned for the purpose of re-filing which is sought by the petitioner herein, could be considered after filing of the return once again as per the notice issued under Section 148 of the Act. Therefore, it is for the petitioner to approach the Appellate Authority within two months as per the proviso under Sec.146(a) of the Act.

Summary

Issues:
Challenge to assessment order under Section 143(3) read with Section 147 of the Income Tax Act, 1961 for Assessment Year 2006-07.

Analysis:
The petitioner, engaged in trading in iron and steel, sought to quash the assessment order passed by the respondent under Section 143(3) read with Section 147 of the Income Tax Act, 1961, for the Assessment Year 2006-07. The petitioner had initially filed the income tax return for the said year, which was accepted under Section 143(1) of the Act. However, the respondent later issued a notice under Section 148 of the Act for re-opening the assessment. The petitioner argued that the respondent failed to provide a reason for the re-opening, which is a prerequisite for such action. Despite participating in the reassessment proceedings, the petitioner was not informed of the reason for re-opening, leading to the petition before the Court.

The petitioner contended that the notice for re-opening the assessment, issued after the return had already been filed and accepted, lacked a valid reason. The petitioner's counsel emphasized the necessity of providing a reason for re-opening an assessment. On the other hand, the respondent's counsel argued that the reason could only be assigned after the return is re-filed as per the notice issued under Section 148 of the Act. The respondent maintained that since the petitioner did not file another return as requested, the reassessment was carried out, and any challenge to it should be directed to the Appellate Authority. The respondent suggested that the petitioner's approach to the Court was premature and advised seeking redressal through the Appellate Authority within the specified timeframe under the Act.

In conclusion, the Court disposed of the petition, directing the petitioner to address the reasons for re-filing after complying with the notice issued under Section 148 of the Act. The petitioner was advised to approach the Appellate Authority within the stipulated two-month period as per the relevant provision of the Act.