2019 (7) TMI 881 - SCH - Income Tax

Reopening of assessment - whether notice u/s 148 in respect of assessment year 2008-2009 to the petitioner (assessee)is legal or not? - HELD THAT - The proper remedy of the petitioner-assessee would be to raise all pleas before the AO in assessment proceedings and if it is decided against him then to carry the issue further in appeal to CIT (Appeals) and then to the Tribunal in second appeal and then to the High Court under Section 260-A of the Income Tax Act, if the occasion so arises in appeal. We are not, therefore, inclined to interfere with impugned order passed by the High Court in view of the liberty granted above. Assessing Officer shall decide all the issues strictly in accordance with law on merits if the assessment proceedings are still pending.

Summary

Issues involved: Validity of notice under Section 148 for assessment year 2008-2009.

Analysis:
The Supreme Court, comprising Hon'ble Mr. Justice Abhay Manohar Sapre and Hon'ble Ms. Justice Indu Malhotra, addressed the sole question of the legality of the notice issued by the Income Tax Officer under Section 148 for the assessment year 2008-2009. The Court emphasized that the proper course of action for the petitioner would be to present all arguments before the Assessing Officer during the assessment proceedings. If the decision is unfavorable, the petitioner can then appeal to the CIT (Appeals), Tribunal, and subsequently to the High Court under Section 260-A of the Income Tax Act. The Court declined to interfere with the High Court's order, granting liberty to the petitioner to pursue the matter through the appellate process outlined. It was further directed that the Assessing Officer must adjudicate on all issues in compliance with the law if the assessment proceedings are ongoing. Consequently, the special leave petition was disposed of, and any pending applications were also resolved.