OM KIRAN INFRA PRO PVT. LTD. V. UNION OF INDIA AND 2 OTHERS

WTAX/713/2022

AI Insights

The case involves Om Kiran Infra Pro Pvt. Ltd., the petitioner, challenging an order and notice issued by the Income Tax Officer, Ward 2(2)(1), Ghaziabad, for the assessment year 2018-19. The petitioner sought to quash the order and notice dated 31.03.2022 under sections 148A(d) and 148 of the Income Tax Act, 1961, respectively. The primary legal contention revolved around whether the preconditions for issuing a notice under Section 148 were met. The court examined the procedural compliance with Section 148A, particularly the requirements for conducting an enquiry and considering the assessee's reply before issuing a notice under Section 148. The court concluded that the Income Tax Officer had adhered to the statutory requirements, leading to the dismissal of the writ petition.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 682934 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 18-05-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: A S G I; GAURAV MAHAJAN; SUDARSHAN SINGH
• Assessee Lawyers: SUYASH AGARWAL
• Keywords: Assessment year 2018-19; Certiorari; Certiorari; Income Tax; Prohibition; Reassessment
• Section: 147; 148; 148A(d)

Judgement Text

"Court No. - 3 Case :- WRIT TAX No. - 713 of 2022 Petitioner :- Om Kiran Infra Pro Pvt. Ltd. Respondent :- Union Of India And 2 Others Counsel for Petitioner :- Suyash Agarwal Counsel for Respondent :- A.S.G.I.,Gaurav Mahajan,Sudarshan Singh Hon'ble Surya Prakash Kesarwani,J. Hon'ble Jayant Banerji,J. Heard Sri Suyash Agarwal, learned counsel for the petitioner, Sri Sudarshan Singh, learned Central Government Standing counsel for the respondent no.1 and Sri Gaurav Mahajan, learned counsel respondent nos. 2 & 3. This writ petition has been filed praying for the following reliefs : i) Issue writ, order or direction in the nature of Certiorari quashing the order dated 31.03.2022 for the A.Y. 2018-19 issued u/s 148A(d) of the Income Tax Act, 1961 by Respondent No.2 - Income Tax Officer, Ward 2(2)(1), Ghaziabad. ii) Issue writ, order or direction in the nature of Certiorari quashing the notice dated 31.03.2022 for the A.Y. 2018-19 u/s 148 of the Income Tax Act, 1961 by the Respondent No.2 - Income Tax Officer, Ward 2(2)(1), Ghaziabad. iii) Issue writ, order or direction in the nature of Prohibition restraining Respondent No.2 from completing further reassessment proceedings pending against the Petitioner for A.Y. 2018-19 in pursuance of notice u/s 148 of the Act dated 31.03.2022. Section 148A of the Income Tax Act 1961, provides that Assessing Authority shall, before issuing any notice under section 148A conduct an enquiry, if required, provide an opportunity of hearing, consider the reply of assessee and thereafter pass an order under Clause (d) on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under Section 148. Bare reading of Clause (d) of Section 148-A indicates that at this stage the Assessing Authority is not required to adjudicate on merits rather he is required to see on the basis of material available on record including the reply of the assessee whether or not it is a fit case to issue notice under Section 148. A notice under Section 148 before making assessment, reassessment or recomputation under Section 147, may be issued and served upon an assessee alongwith the copy of an order, if required, under clause (d) of Section 148A, requiring him to furnish within such period as may be specified in such notice, return of income or income of any other person in respect of which he is assessable under the Act during the previous year corresponding to the relevant assessment year, in prescribed form and verified in the prescribed manner and setting forth such other particular as may be prescribed; and the provisions of the Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under Section 139. The first proviso to Section 148 puts a rider on issuance of notice by providing that no notice shall be issued issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice. Thus, perusal of the impugned order dated 31.03.2022 passed by the Assessing Officer for the A.Y. 2018-19 under Section 148 A (d) of the Income Tax Act, 1961 indicates that the conditions enshrined in Clause (d) of Section 148 A stands satisfied for issuance of notice under Section 148 of the Act, 1961. Under the circumstances, we do not find any good reason to interfere with the impugned order. The petitioner has remedy to take all defence, as may be available to him under law, before the Assessing Officer in proceedings under Section 147 of the Act, 1961 and to explain the transactions/his income for assessment. Writ petition is dismissed. Order Date :- 18.5.2022/vkg Digitally signed by VINOD KUMAR GOSWAMI Date: 2022.05.19 15:40:38 IST Reason: Location: High Court of Judicature at Allahabad "