2025 (2) TMI 450 - HC - Income Tax

Validity of assessment order passed u/s 147 r.w.s.144B - petition challenged an order passed u/s 154 r.w.s.143(3) - HELD THAT - Petitioner has to file an appeal against the Order passed u/s 147 r.w.s. 144B on 31.03.2022 or the Order passed u/s 154 r.w.s. 143(3) of the Income Tax Act 1961 on 29.03.2022. Both have similar impact on the petitioner. Petitioner can therefore be asked to workout the appellate remedy against the Impugned Order dated 29.03.2022 which rectifies the earlier Order dated 29.12.2017 which was also sought to be revised pursuant to the Notice dated 31.03.2021 issued u/s 148 of the Income Tax Act 1961. Both the Writ Petitions are disposed with liberty to the petitioner to challenge the Impugned Assessment Order dated 31.03.2022 and the Rectification Order dated 29.03.2022 before the Commissioner of Income Tax (Appeals) within a period of 30 days from the date of receipt of a copy of this order.

Summary

The High Court of Madras considered two writ petitions challenging assessment orders under the Income Tax Act, 1961 for the Assessment Year 2015-2016. The first petition challenged an assessment order passed under Section 147 read with Section 144B, while the second petition challenged an order passed under Section 154 read with Section 143(3). Both orders arose from a previous assessment completed on 29.12.2017, which was reopened under Section 148. The court noted that both orders dealt with the same issue as communicated to the petitioner in response to a notice issued under Section 148. The court considered arguments from both parties and concluded that the petitioner should file an appeal against the order that rectified the earlier assessment. Both writ petitions were disposed of with liberty granted to challenge the assessment orders before the Commissioner of Income Tax (Appeals) within 30 days.The core legal questions considered by the court include the validity of assessment orders under different sections of the Income Tax Act, the impact of rectification orders on previous assessments, and the petitioner's right to appeal against the orders.In the detailed analysis, the court examined the legal framework of the Income Tax Act, relevant precedents, and the specific provisions invoked in the assessment orders. The court considered the reasons for reopening the assessment, the arguments presented by both parties, and the implications of the assessment orders on the petitioner. The court highlighted the need for the petitioner to pursue appellate remedies against the orders and provided a timeline for doing so.Significant holdings in the judgment include the directive for the petitioner to challenge the assessment orders before the Commissioner of Income Tax (Appeals) within a specified timeframe. The court emphasized the similarity in impact between the two orders and the need for the petitioner to address the rectification order that revised the earlier assessment.In conclusion, the High Court of Madras disposed of both writ petitions, allowing the petitioner to appeal against the assessment orders within 30 days. The judgment focused on the procedural aspects of challenging assessment orders under the Income Tax Act and provided clarity on the petitioner's next steps in seeking redress.