2023 (7) TMI 1353 - HC - Income Tax

Reopening of assessment u/s 147 - objection to the notice u/s 148A(b) of the Act was not properly considered and discussed in the order u/s 148A(d) - scope of old act - new regime u/s 148A - HELD THAT - It appears from the submission of Appellant that petitioner is not satisfied with the reasonings and findings recorded by the assessing officer in the impugned assessment order which according to him is not sufficient. Appellant has relied on a judgment in the case of SABH Infrastructure Ltd. 2017 (9) TMI 1589 - DELHI HIGH COURT . As have considered the said judgment where the issue was relating to the notice u/s 148 of the Income Tax Act (under the Old Act) where there were no provisions like giving opportunity to an assessee to file objection to the notice which is mandatory to be issued under Section 148A(b) of the Act and that after considering the objection against u/s 148A(b) the assessing officer was required to pass order u/s 148A(d) and only thereafter he will have to issue notice u/s 148 after approval from the specified authority and after issuance of notice u/s 148 the assessing officer will have to observe all the formalities of issuing notice under Section 142(1) and 143(2) like a regular assessment and only then order u/s 147 could be passed. These factors were not present under the Old Act. It is a well-settled principles of law that the Writ Court cannot act as an assessing officer or an appellate authority to scrutinise the facts and findings based on evidence by the assessing officer in the final assessment order which is an appealable order and to substitute with its own findings and reasonings. This is not a case where the assessment order has been passed by an authority having inherent lack of jurisdiction or there is any procedural irregularity or that the impugned order has been passed in violation of principles of natural justice which are exceptions for entertaining the writ petition in spite of availability of alternative remedy. In view of the discussion made above we are not inclined to entertain this writ petition and accordingly this writ petition dismissed.

Summary

Issues involved:
The judgment involves a challenge to an assessment order under Section 147 of the Income Tax Act, 1961, related to assessment year 2014-15, based on the proper consideration of objections under Section 148A(b) of the Act and the satisfaction with the reasonings and findings in the assessment order.

Challenge to Assessment Order:
The petitioner challenged the assessment order under Section 147 of the Income Tax Act, 1961, dated 31st May, 2023, on the grounds that its objection to the notice under Section 148A(b) was not properly considered and discussed in the order under Section 148A(d) of the Act. The petitioner approached the Court after the order under Section 148A(d) was culminated into the final assessment order under Section 147 of the Act. The petitioner disputed the merit of the assessment, reasonings, and findings by the assessing officer, seeking the Writ Court to scrutinize the assessment order and findings based on material evidence.

Legal Principles and Precedents:
The judgment referred to a case from the Hon'ble Delhi High Court regarding the notice under Section 148 of the Income Tax Act, emphasizing the mandatory provisions for giving an opportunity to an assessee to file objections under Section 148A(b) of the Act. It highlighted the procedure where the assessing officer must pass an order under Section 148A(d) of the Act after considering objections, followed by issuing a notice under Section 148 of the Act, and observing formalities under Sections 142(1) and 143(2) for a regular assessment, before passing an order under Section 147.

Court's Decision:
The Court reiterated that it cannot act as an assessing officer or appellate authority to scrutinize facts and findings in the final assessment order, which is appealable. It clarified that the writ petition cannot be entertained unless there is a lack of jurisdiction, procedural irregularity, or violation of natural justice principles. Consequently, the writ petition was dismissed. However, the petitioner was allowed to raise all points in the writ petition before the appellate authority if intending to file an appeal against the assessment order.