2022 (6) TMI 1467 - HC - Income Tax

Validity of reopening assessment - order passed u/s 148A(d) pursuant to the notice u/s 148A(b) challenged on the ground of alleged violation of principles of natural justice - HELD THAT - As the impugned order u/s 148A(d) has been passed after compliance of all the formalities required under the relevant provisions of the Income Tax Act, 1961, and there is no procedural irregularity or violation of principles of natural justice. It appears from record that, first, notice was issued u/s 148A(b) and in response to the same, the petitioner has filed its objection and thereafter the Assessing Officer concerned has passed order u/s 148A of the Act after considering the objection of the petitioner by giving reason and making elaborate discussion. This Court in exercise of its Constitutional writ jurisdiction cannot act as an Appellate Authority over the impugned order passed u/s 148A(d) when there is no procedural irregularity or violation of principles of natural justice or the Officer has not acted contrary to any provision of the Statute and reasoning and findings given by the AO in his order u/s 148A(d) should not be substituted by a writ Court. WP dismissed.

Summary

Issues:
Challenge to order under Section 148A(d) of the Income Tax Act, 1961 based on alleged violation of principles of natural justice.

Analysis:
The High Court of Calcutta dismissed a writ petition challenging an order passed under Section 148A(d) of the Income Tax Act, 1961, on the grounds of alleged violation of principles of natural justice. The court noted that the impugned order had been issued after compliance with all formalities required by the relevant provisions of the Act. The court emphasized that there was no procedural irregularity or violation of principles of natural justice in the order under Section 148A(d) of the Act.

The court highlighted that a notice was initially issued under Section 148A(b) of the Act, to which the petitioner responded by filing objections. Subsequently, the Assessing Officer passed the order under Section 148A of the Act after considering the petitioner's objections, providing reasons, and engaging in detailed discussions. The court clarified that it could not function as an Appellate Authority over the impugned order unless there was a procedural irregularity, violation of principles of natural justice, or the Officer acted contrary to any statutory provision. The court emphasized that the reasoning and findings of the Assessing Officer should not be substituted by a writ Court.

Consequently, the court, based on the facts and submissions, dismissed the writ petition (WPA 10858 of 2022) challenging the order under Section 148A(d) of the Income Tax Act, 1961, as it found no procedural irregularity or violation of principles of natural justice in the impugned order.