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TMI Blog2024 (4) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... consequent demand notice dated 28th March 2023 contained in DIN-ITBA/AST/S/156/2022-23/1051539284(1). 2. In the above context, the petitioner has also challenged the very basis for issuing notices under sections 148 and 148-A of Income Tax Act, 1961. 3. The petitioner has made the following prayers: "a. For issuance of an appropriate writ, order or direction for quashing and setting aside the Order of Assessment dated 28.03.2023 bearing DIN: ITBA/AST/S/147/2022-23/1051538698(1) (Annexure-12) along with Notice of Demand 28.03.2023 bearing DIN-ITBA /AST/S/156/2022-23/1051539284(1) (Annexure-13) both being vague, cryptic and unreasonable; b. For issuance of an appropriate writ, order or direction for quashing and setting aside the Penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld grounds. The learned counsel would submit that a notice issued by the statutory authority cannot be challenged in a writ proceeding except on the grounds that (a) the notice is illegal or (b) the notice is without jurisdiction. The learned counsel for the Revenue further submits that the petitioner has an efficacious remedy of appeal under section 246 of the Income Tax Act, 1961 to challenge the order of assessment dated 28th March 2023. 6. The petitioner has pleaded that she is running a proprietary concern in the name and style of M/s Renu Raj Enterprises which is engaged in the trade of iron and steel. For the assessment year 2018-19, a notice dated 11th March 2022 under section 148-A(a) of the Income Tax Act, 1961 was issued to her. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h a final order passed on 20th April 2021 and the said order is a subject matter of challenge in Appeal No. NFAC/2017-18/10081359. Even so, a show cause notice under section 147 was issued on 1st March 2023 requiring the petitioner to show cause as to why the proposed variation should not be made and assessment should not be completed accordingly. This is the case pleaded by the petitioner that objection put-forth by her through reply dated 3rd March 2023 was not considered by the Assessing Officer. Furthermore, the order passed in WP (T) No. 94 of 2021 whereby the proceedings initiated and demand of tax imposed by the GST Department were quashed by the High Court. This fact has also been highlighted to lay a challenge to the purported seco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred before the Income Tax Appellate Tribunal on 12.04.2023." 10. The scheme of the Indian Income Tax Act, 1961 indicates that the determination of facts and of law is entrusted to the Income Tax Officers and to question the assessment otherwise than by the use of machinery contemplated thereunder shall be incompatible with the scheme of the Act. 11. In "CIT Vs. Chhabil Dass Agarwal (2014) 1 SCC 603 the Hon'ble Supreme Court held that the Income Tax Act provides complete machinery for the assessment/reassessment of tax, imposition of penalty and for obtaining relief in respect of any improper order passed by the revenue authorities. 12. The learned counsel for the Revenue has relied on the judgment in "Anshul Jain Vs. Principal Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposit in cases where the assessee seeks an order of stay. 14. Secondly, this is also no longer in the realm of doubt that a notice issued by a statutory authority cannot be made the subject matter of challenge before the writ Court. The assessing officer who issued the notice under sections 148 and 148-A of Income Tax Act, 1961 is the authority vested with the power to issue a notice under these provisions. However, the plea put forth by the petitioner is that the notice under section 148-A has been issued in breach of natural justice inasmuch as no opportunity of hearing was provided to the assessee. On this issue, all that we intend to indicate is that the requirements of natural justice are not inflexible and its applicability shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscretionary jurisdiction and hence such discretion under Article 226 should not ordinarily be exercised by quashing a show-cause notice or charge-sheet. 16. No doubt, in some very rare and exceptional cases the High Court can quash a charge-sheet or show-cause notice if it is found to be wholly without jurisdiction or for some other reason if it is wholly illegal. However, ordinarily the High Court should not interfere in such a matter." 16. In the counter-affidavit, the Revenue has taken a specific objection that the previous assessment for the assessment year 2018-2019 would clearly indicate that some part of entries made by the assessee for the financial year 2017-2018 were found not genuine and expenses incurred thereon were disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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