2023 (1) TMI 1255 - HC - Income Tax

Reopening of assessment u/s 147 - petitioner had approached the court for intervention on the ground that the impugned notice issued u/s 148 was without jurisdiction - HELD THAT - It is pertinent to note that AO in the assessment order has adverted to the fact that the petitioner had, in fact, filed a return. AO, after examining the matter, concluded that the taxable income declared by the petitioner while filing the return, which was pegged at Rs.1,96,430/- is in order and, accordingly, accepted the same. Resultantly, there is no tax liability foisted on the petitioner.Therefore, in our view, this writ petition need not progress further. Accordingly, the interim order dated 11.12.2019 shall stand vacated.

Summary

Issues:
1. Validity of notice dated 31.03.2019 under Section 148 of the Income Tax Act, 1961.
2. Validity of notice dated 27.11.2019 under Section 142(1) of the Income Tax Act, 1961.
3. Prohibition on further steps by Respondents.

Analysis:
1. The petitioner sought a writ to declare the notice dated 31.03.2019 under Section 148 of the Income Tax Act as invalid. The court allowed the revenue to proceed but with a condition not to give effect to any final order until the writ petition is resolved.

2. A counter-affidavit was filed by the respondents along with an assessment order dated 26.12.2019 for Assessment Year (AY) 2012-13. The petitioner argued that the notice was without jurisdiction, emphasizing that a return was filed for the relevant AY, processed under Section 143(1) of the Act.

3. The Assessing Officer (AO) noted in the assessment order that the petitioner had indeed filed a return, and the declared income was accepted as valid, resulting in no tax liability. Consequently, the writ petition was deemed unnecessary to proceed further, and the interim order was vacated.

4. The court directed that if the petitioner has any grievances regarding the assessment order, they should pursue appropriate statutory remedies as per the law. The judgment concluded that the writ petition need not continue, and the interim order stands vacated, allowing the petitioner to seek legal recourse if needed.