Mandeep Kaur V. Commissioner of Income Tax, Jalandhar and others

CWP/5787/1999

AI Insights

The case involves Mandeep Kaur, the petitioner, who challenged a show cause notice issued under Section 148 of the Income Tax Act, 1961, for re-assessment of the assessment year 1991-92. The notice was based on the allegation that the petitioner was a benamidar of Sh. Rustam Singh. The petitioner argued that the reasons for re-opening the assessment were insufficient and that the objections to the show cause notice had not been considered. The respondents contended that as no adverse order had been passed, the writ petition was premature. The court decided that the petitioner should first utilize the statutory remedies available under the Income Tax Act before seeking judicial intervention.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 674190 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 21-11-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: VIVEK SETHI
• Assessee Lawyers: AKSHAY BHAN; AALOK MITTAL
• Keywords: Block period; Jurisdiction; Re-assessment; Show cause notice; Writ of Certiorari; Benamidar
• Section: 147; 148

Judgement Text

"CWP No.5787 of 1999 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH (1) C.W.P. No.5787 of 1999. Date of Decision:-21.11.2013. Mandeep Kaur. .........Petitioner. Versus Commissioner of Income Tax, Jalandhar and others .........Respondents. (2) C.W.P. No.5788 of 1999. Mandeep Kaur. .........Petitioner. Versus Commissioner of Income Tax, Jalandhar and others .........Respondents. CORAM: Hon'ble Mr. Justice Rajive Bhalla Hon'ble Mr. Justice Dr. Bharat Bhushan Parsoon. ***** Present:- Mr. Akshay Bhan, Advocate and Mr. Aalok Mittal, Advocate for the petitioner. Mr. Vivek Sethi, Advocate for the respondents. Rajive Bhalla, J (Oral) By way of this order, we shall decide CWP No.5787 of 1999 and 5788 of 1999 as they involve adjudication of the same questions of fact Yag Dutt 2013.12.17 19:28 I attest to the accuracy and integrity of this document CWP No.5787 of 1999 -2- and law. For the sake of brevity, facts are being taken from CWP No.5787 of 1999. The petitioner is before us praying for issuance of a writ of certiorari for quashing show cause notice issued under Section 148 of the Income Tax Act, 1961 (hereinafter mentioned as, the Act) for re-assessment regarding assessment year 1991-92. Counsel for the petitioner contends that reasons recorded by the Assessing Officer under Section 147 of the Act, for re-opening assessment for the year 1991-92, namely, that the petitioner is a benamidar of Sh. Rustam Singh are insufficient to form an opinion that assessment for the year 1991-92 should be re-opened. It is further submitted that the petitioner having already been assessed for the block period 1.4.1985 to 25.7.1995, the Assessing Officer had no jurisdiction to re-open the assessment by invoking jurisdiction under Sections 147 and 148 of the Act. It is further submitted that the objections raised by the petitioner to the show cause notice issued have neither been considered nor decided and, therefore, the notice served upon the appellant under Section 148 of the Act may be quashed. Counsel for the revenue submits that as a mere show cause notice has been issued to the petitioner and no adverse order has been passed till date, the writ petition should be dismissed by relegating the petitioner to seek adjudication of the show cause notice. It is further submitted that as no final opinion adverse to the petitioner has been recorded, a writ of certiorari to quash the show cause notice is not maintainable. Yag Dutt 2013.12.17 19:28 I attest to the accuracy and integrity of this document CWP No.5787 of 1999 -3- We have heard counsel for the parties, perused the paper book as well as impugned show cause notice and are of the firm opinion that as a mere show cause notice has been served after recording a prima-facie opinion that assessment for the year 1991-92 requires re-consideration, the petitioner should have, in the first instance, raised the pleas relating to lack of jurisdiction, insufficiency of reasons assigned under Section 147 of the Act and other related matters, before the Assessing Officer, instead of approaching this Court by way of a writ petition. The Income Tax Act provides a complete procedure of multiple appeals, applications for rectification and even revision. Though Article 226 of the Constitution of India does not prohibit an assessee from approaching the High Court but as the statute itself provides sufficient fora for redressal of grievances raised by an assessee, a writ petition may only be filed in exceptional circumstances. Even otherwise, adjudication of the show cause notice would necessarily require adjudication of disputed questions of fact relating to doubtful transactions, declaration of income, properties held by the assessee and her father and, therefore, can only be scrutinized by the Assessing Officer after considering the objections raised by the petitioner. In view of what has been recorded hereinbefore, the writ petitions are dismissed by relegating the petitioner to seeking adjudication of the show cause notice. The Assessing Officer shall consider all such objections as may have been raised or may be raised by the assessee in response to the show cause notice as well as objections relating to the order Yag Dutt 2013.12.17 19:28 I attest to the accuracy and integrity of this document CWP No.5787 of 1999 -4- passed under Section 147 of the Act. Parties are directed to appear before the concerned Assessing Officer on 31.1.2014. (Rajive Bhalla) Judge (Dr. Bharat Bhushan Parsoon) Judge November 21, 2013 'Yag Dutt' Yag Dutt 2013.12.17 19:28 I attest to the accuracy and integrity of this document "