INCOME TAX ACT, 1961

Section 147

Reassessment - Writ jurisdiction - Availability of alternative remedy -

Assessee filed this appeal challenging the approval granted in terms of section 151 (1) to reopen the assessment and to quash the notice issued under section 148 after holding that statutory requirement was complied with and accordingly relegating assessee to avail the statutory remedy by way of appeal. Since the assessment proceedings had also been finalized in the meanwhile, made assessee to feel aggrieved and hence present appeal was filed. Held: The approval granted and reasons which made AO to believe that some income had escaped assessment have to be tested with regard to the actual facts and figures. This comes within the scope of alternative remedy by way of appeal and no prejudice can be stated as caused to assessee in this regard. Revenue held that assessment proceedings were finalized in respect of 'five' different assessment years and hence five different writ petitions came to be filed by assessee. Among the 'five', two writ petitions have already been withdrawn and assessee had chose to avail the statutory remedy. These appeals were not maintainable and accordingly, they were dismissed. This was without prejudice to rights and liberties of assessee to move statutory authority by way of appeal in accordance with law.

REFERRED : Khoday Distilleries Ltd. (Now Known As Khoday India Limited) & Ors. v. Mahadeshwara Sahakara Sakkare Karkhane Ltd. (2019) 4 SCC 376 GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 1 SCC 72 : 2003 TaxPub(DT) 0734 (SC) Kunhayammed & Ors. v. State Of Kerala & Anr. (2000) 6 SCC 359 : 2000 TaxPub(DT) 1461 (SC) Calcutta Discount Company Limited v. ITO & Another AIR 1961 SC 372 : 1961 TaxPub(DT) 0130 (SC) Kamala Ojha v. ITO & Ors. [Special Leave Petition Civil Diary No. 38102/2019, dt. 18-11-2019]

FAVOUR : Against the assessee

A.Y. : 2012-13

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