2023 (2) TMI 1271 - HC - Income Tax

Validity of impugned order u/s 147/263 - violation of principle of natural justice by not allowing the assessee petitioner to have access/inspection of some inspection report on which the AO concerned has relied while passing the impugned reassessment order which is an admitted position - HELD THAT - This is the issue of such a nature it can be adjudicated by the appellate authority since the impugned order is an appellable order. Petitioner shall file appeal against the impugned assessment order within a period of two weeks from date. Petitioner shall make payment of 10% of the disputed tax within a period of ten days. If petitioner files the document before the AO concerned relating to filing of appeal and deposit of the amount of tax as per the order of this Court, in that event the assessing officer concerned shall not take any coercive action against the petitioner till the disposal of the appeal to be filed. If petitioner files the appeal within the time stipulated herein the appellate authority concerned shall expedite the appeal and dispose of the same not beyond the period of six months from date without being influenced by any observation made in this writ petition.

Summary

Issues: Challenge to impugned order under Income Tax Act, 1961 for violation of natural justice

Analysis:
The petitioner challenged the impugned order dated 29th December, 2022 under Section 147/263 of the Income Tax Act, 1961, alleging a violation of the principle of natural justice. The petitioner was not allowed access to some inspection reports relied upon by the Assessing Officer in passing the reassessment order. The court acknowledged this issue but deemed it suitable for adjudication by the appellate authority since the impugned order was appellable.

Payment of disputed tax and filing of appeal:
The senior advocate for the petitioner was given liberty to consult the petitioner regarding the payment of 10% of the disputed tax and filing an appeal against the reassessment order. The petitioner expressed readiness to comply with these conditions, leading to the disposal of the writ petition.

Terms and conditions of disposal:
The court disposed of the writ petition with specific terms and conditions. The petitioner was directed to file an appeal against the impugned assessment order within two weeks and make a payment of 10% of the disputed tax within ten days. It was further stipulated that if the petitioner submitted the necessary documents to the Assessing Officer regarding the appeal and tax payment, no coercive action would be taken against the petitioner until the appeal's disposal. Additionally, the appellate authority was instructed to expedite the appeal process and dispose of it within six months, independent of any observations made in the writ petition.

Conclusion:
The writ petition challenging the impugned order under the Income Tax Act, 1961 was disposed of with the petitioner agreeing to file an appeal and make the required payment. The court provided specific terms and conditions for the disposal, emphasizing the timely filing of the appeal and the payment of the disputed tax while ensuring protection from coercive actions by the Assessing Officer.