2019 (1) TMI 1770 - HC - Income Tax

Reopening of assessment u/s 148 - issues raised on the merits by the writ petitioner are pending before the Income Tax Appellate Tribunal, which is a Second Appeal - HELD THAT - Though the learned counsel for the writ petitioner argued various points with reference to Section 148 this Court is of an opinion that the present writ petition is filed at the stage when the notice under Section 148 of the Income Tax Act, 1961, was issued. Thereafter, the writ petitioner submitted explanations / objections and the Assessing Officer adjudicated the issues and passed an order. Thus, the question of considering the grounds raised with reference to the notice issued under Section 148 does not arise at this length of time. Final assessment order passed by the Assessing Officer was taken by way of an appeal to the Appellate Authority and thereafter, to the Income Tax Appellate Tribunal and the said appeal is now pending adjudication. All the grounds raised in the present writ petition as well as the additional grounds, if any, shall be raised before the Appellate Tribunal by the writ petitioner by producing documents or other materials.

Summary

Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961; Validity of final assessment order; Jurisdiction of High Court in the present writ petition.

Analysis:
The judgment concerns a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961. The parties acknowledge that the assessment was conducted following an interim order from the High Court, and the final assessment order was appealed before the Appellate Authority and subsequently disposed of. The writ petitioner has raised issues on the merits pending before the Income Tax Appellate Tribunal, constituting a Second Appeal.

The court noted that the writ petition was filed at the stage of the notice under Section 148 issuance. The petitioner submitted explanations and objections, and the Assessing Officer made a decision. Consequently, the court found that considering the grounds related to the initial notice under Section 148 was not relevant at this juncture. The final assessment order was appealed to the Appellate Authority and then to the Income Tax Appellate Tribunal, where the appeal is currently under consideration.

Given the circumstances, the court directed that all grounds raised in the writ petition, including any additional grounds, should be presented before the Appellate Tribunal by the petitioner with supporting documents or materials. The writ petition was dismissed with liberty granted to raise all relevant issues before the Appellate Tribunal. No costs were awarded, and a connected miscellaneous petition was also dismissed as a consequence of the main judgment.