2024 (5) TMI 33 - HC - Income Tax

Revision u/s 263 - scrutiny assessment was completed on the return of income filed - petitioner had an alternate remedy before the appellate Tribunal u/s 253(1)(c) of the Income Tax Act - HELD THAT - A survey was conducted under Section 133A of the Income Tax Act, 1961 on 14.03.2017. The petitioner had declared sum under Pradhan Mantri Garib Kalyan Yojana Scheme PMGKYS 2016. It is thereafter, the petitioner filed return on 03.11.2017 declaring a total loss which culminated in the scrutiny assessment order dated 30.12.2019 under Section 143(3) of the Income Tax Act, 1961, for the Assessment Year 2017-2018. It is, in this background, the show cause notice was issued under Section 263 of the Income Tax Act, 1961. The scrutiny assessment order passed under Section 143(3) of the Income Tax Act, 1961, cannot be confused with the impugned order pursuant to invocation of power under Section 263 of the Income Tax Act, 1961. Therefore, there is no merit in this Writ Petition. Further, the issue involves disputed question of facts, liberty is given to the petitioner to file a statutory appeal before the Appellate Tribunal u/s 253(1)(c) of the Income Tax Act, 1961, within a period of 45 days from the date of receipt of a copy of this order. The petitioner is also at liberty to move suitable appeal under the same proviso against the assessment order passed u/s 144 r/w section 263 and144B of the Income Tax Act, 1961, within such time. The petitioner is also at liberty to move suitable application for staying the operation of the impugned order as also the assessment order passed on 24.03.2023 under Section 144 read with Section 263 read with Section 144B of the Income Tax Act, 1961, along with the proposed appeal.

Summary

Issues involved: Challenge to impugned order u/s 263 of the Income Tax Act, 1961, belated approach to the court instead of appellate Tribunal u/s 253(1)(c), compliance with tax payments, invocation of power u/s 263 for revision of assessment order, laches and delay in filing, survey conducted u/s 133A, scrutiny assessment order u/s 143(3) distinguished from impugned order u/s 263.

The petitioner challenged the impugned order passed by the first respondent u/s 263 of the Income Tax Act, 1961, following a show cause notice. The petitioner, having completed scrutiny assessment earlier, argued compliance with tax payments and belated invocation of power u/s 263. The respondents contended that the petitioner had an alternative remedy before the appellate Tribunal u/s 253(1)(c) and that the impugned order was justified due to errors in the assessment order. The court noted the survey conducted u/s 133A and the distinction between the scrutiny assessment order u/s 143(3) and the impugned order u/s 263. The court granted liberty to the petitioner to file statutory appeals and suitable applications within specified timelines, disposing of the Writ Petition without costs.

The petitioner's case involved a challenge to the impugned order u/s 263 of the Income Tax Act, 1961, following a show cause notice and compliance with tax payments. The respondents argued for dismissal due to the petitioner's belated approach to the court instead of the appellate Tribunal u/s 253(1)(c) and errors in the assessment order necessitating the invocation of power u/s 263. The court considered the survey conducted u/s 133A and clarified the distinction between the scrutiny assessment order u/s 143(3) and the impugned order u/s 263. Liberty was granted to the petitioner to file statutory appeals and suitable applications within specified timelines, resulting in the disposal of the Writ Petition without costs.