2011 (3) TMI 764 - HC - Income Tax

Second round of litigation - Revision u/s 264(2) - Order u/s 197 - if the petitioner would file a revision within a period of two weeks challenging the order passed by the Assessing Officer on all grounds including that the said authority could not have taken recourse qua the Act, the revisional authority, namely, the Commissioner, Income-tax, shall decide the revision adverting to all the issues within a period of three weeks positively - the writ petition is disposed of

Summary

Issues involved:
1. Jurisdiction of the Income-tax Officer under section 197 of the Income-tax Act, 1961.
2. Challenge of the order passed by the Assessing Officer under section 197 of the Act.
3. Whether the petitioner can challenge the order in a revision under section 264(2) of the Act.

Analysis:
Issue 1: The petitioner challenged the assumption of jurisdiction by the Income-tax Officer under section 197 of the Income-tax Act, 1961, as being without jurisdiction. The High Court noted the arguments presented by the petitioner's senior counsel and the respondent's counsel. The court decided that the petitioner could challenge the order in a revision under section 264(2) of the Act, as suggested by the Revenue's counsel.

Issue 2: The Assessing Officer passed an order under section 197 of the Income-tax Act, 1961, on February 10, 2011. The petitioner, represented by senior counsel, contested the jurisdiction of the Assessing Officer in passing the said order. The High Court, considering the submissions, directed the petitioner to file a revision challenging the order within two weeks. The court instructed the Commissioner, Income-tax, as the revisional authority, to decide on all grounds, including jurisdiction, within three weeks.

Issue 3: The High Court disposed of the writ petition without entertaining it, with the condition that the petitioner could file a revision challenging the order passed by the Assessing Officer. The court emphasized that the revisional authority must provide detailed reasons on the tenability of the proceedings under section 197 of the Act and address all relevant issues comprehensively. The Commissioner was directed to requisition records from the Income-tax Officer and ensure compliance with any additional document requests.

In conclusion, the High Court disposed of the writ petition without costs, instructing the petitioner to file a revision challenging the order under section 197 of the Income-tax Act, 1961. The court directed the revisional authority to thoroughly examine all grounds, including jurisdiction, and provide detailed reasons for their decision within a stipulated timeframe.