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2020 (1) TMI 626 - HC - Income TaxReopening of assessment u/s 147 - as per petitioner while passing the assessment order, the AO has not dealt with various submissions of the petitioner - HELD THAT - There may be merit in this submission of the petitioner, however, we do not wish to examine the same any further at this stage, considering the fact that the petitioner has statutory right of the appeal to assail the re -assessment order before the CIT (A) and, if necessary even before the ITAT. Though, it is open to the petitioner to press this petition, to independently assail the notice under Section 148 irrespective of the fact that the assessment order has been passed, Mr. Balbir Singh, on instruction states that the appellant would be satisfied, if the appellant is permitted to raise all its pleas before the CIT (A), including in relation to the validity of the notice issued u/s 148 which may be decided on merits. He submits that in the meantime, the demand that may be raised by the petitioner in pursuance of the re-assessment order dated 27.12.2019, be not given effect to. We are inclined to accept the submission of the Mr. Singh looking into the overall facts and circumstances of the case. We accordingly dispose of this petition with liberty to the petitioner to avail of its statutory right of appeal in respect of the re-assessment order dated 27.12.2019 before the CIT (A). Demand, if any, raised in consequence of the said re-assessment order shall however not be enforced till the decision of the appeal by the CIT (A).
Issues:
Challenge to notice under Section 148 of the Income Tax Act for AY 2012-13 and disposal of objections. Validity of re-assessment proceedings initiated by the notice. Analysis: The petitioner filed a writ petition to challenge a notice issued under Section 148 of the Income Tax Act for the assessment year 2012-13 and the order disposing of objections to the notice. Additionally, the petitioner contested the re-assessment proceedings initiated by the notice. During the initial hearing, it was argued that the approval of the Principal Commissioner of Income Tax (PCIT) under Section 151 had not been provided to the petitioner, despite the respondents' claim that it was enclosed with the order disposing of objections. The petitioner also raised concerns about the objections not being adequately addressed. The court directed the respondents to produce the original records, including the PCIT's approval, for review. The assessment proceedings were allowed to continue, but the re-assessment order was not to be enforced. The respondents presented the original record showing that the PCIT's approval was obtained before issuing the impugned notice. Subsequently, the Assessing Officer (AO) passed the re-assessment order. During the hearing, Mr. Balbir Singh, counsel for the petitioner, argued that the AO did not adequately address various submissions by the petitioner in the assessment order. While acknowledging potential merit in the petitioner's submission, the court refrained from further examination at that stage. The petitioner was reminded of the statutory right to appeal against the re-assessment order before the Commissioner of Income Tax (Appeals) [CIT (A)] and, if necessary, before the Income Tax Appellate Tribunal (ITAT). Mr. Singh, on behalf of the petitioner, expressed satisfaction if allowed to raise all pleas before the CIT (A), including challenging the validity of the notice under Section 148. It was requested that any demand resulting from the re-assessment order not be enforced in the meantime. The court, considering the circumstances, granted the petitioner liberty to appeal the re-assessment order before the CIT (A) and directed that any demand arising from the order not be enforced until the CIT (A) decides on the appeal. The court clarified that no observations on the case's merits were made, preserving all pleas and defenses of both the petitioner and the revenue. The CIT (A) was instructed to address all submissions by the petitioner, including the notice's validity under Section 148. The interim order from the previous hearing was vacated, making the re-assessment order effective from that day.
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