2023 (12) TMI 1376 - HC - Income Tax

Appeal against Assessment order completed u/s 143(3) r/w 144B - addition made u/s 68 assessed at a higher rate u/s 115BBE was against the provisions of the statute and in violation of the principles of natural justice - HELD THAT -Instead of exhausting the remedy, the appellant rushed to this court with a writ petition. The appellant was put to notice, and after that, the assessment proceedings were completed. In exercising the power of judicial review under Article 226 of the Constitution of India, this court cannot consider the merits of the assessment order. We do not find that the impugned assessment order is without jurisdiction or that there has been any violation of the principles of natural justice. Hence, the learned Single Judge was absolutely justified in relegating the appellant to the statutory appellate remedy. We find no reason to interfere with the said judgment. The time granted by the learned Single Judge to prefer the appeal is already over. In these circumstances, we permit the appellant to file an appeal u/s 246A before the Appellate Authority against the impugned assessment order within a period of one week from today. The appellant is also free to file an application for stay. If such an appeal and stay application are filed, the Appellate Authority is directed to consider and dispose of either the appeal itself or the stay application within a period of one month from the receipt of the same after hearing both sides. Needless to say, during the said period of one month, recovery proceedings against the appellant for recovery of the amounts confirmed by the assessment order shall be kept in abeyance.

Summary

The High Court of Kerala upheld the dismissal of a writ petition challenging an income tax assessment order. The appellant was directed to pursue the statutory appellate remedy instead. The appellant was given one week to file an appeal under Section 246A of the IT Act and could also apply for a stay, with the directive that the appeal or stay application be decided within one month. Recovery proceedings were to be stayed during this period.