Subhash Agrawal & Associates V. Union of India and Central Board of Direct Taxes and Principal Commissioner of Income-Tax, Raipur-1 and Joint Commissioner of Income Tax, Range-1 and Income-Tax Officer, Ward-1

WA/520/2023

AI Insights

The case involves Subhash Agrawal, who appealed against the dismissal of his Writ Petition challenging the assessment proceedings under Section 147 and the notice under Section 148 of the Income Tax Act, 1961. The original Writ Petition was filed on 11.2.2022, and during its pendency, an Assessment Order was passed on 24.3.2022. The learned Single Judge dismissed the Writ Petition on 7.10.2023, citing the availability of an alternative remedy through an appeal under Section 246A of the Income Tax Act. The Division Bench of the High Court of Chhattisgarh upheld this decision, granting the appellant an additional month to file the appeal and extending the interim order accordingly.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 693802 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 05-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: AMIT CHOUDHARY; TOPILAL BARETH
• Assessee Lawyers: S RAO
• Keywords: Alternative efficacious remedy; Assessment Order; Income Tax; Writ Appeal
• Section: 147; 148; 143(3); 246A; 144B

Judgement Text

" 1 / 5 (W.A. No. 520 of 2023) 2024:CGHC:34578-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WRIT APPEAL NO. 520 OF 2023 (Arising out of Order dated 7.10.2023 passed in WP(T) No.30/2022 ● Subhash Agrawal, S/o Shri Ramniwas Agrawal, aged about 56 years, M/s. Subhash Agrawal & Associates, M.G. Road, Banaras Chowk, P.S. Ambikapur, PIN 497001 (C.G.) ... Appellant(s) Versus 1. Union of India, through: Secretary, Central Board of Direct Taxes, North Block, New Delhi. 2. Principal Commissioner of Income-Tax, Raipur-1, Aaykar Bhawan, Civil Lines, Raipur (C.G.) 3. Joint Commissioner of Income Tax, Range-1, Income- Tax Office, Mahima Complex, Vyapar Vihar, P.S. Tarbahar, Bilaspur (C.G.) PIN 495001. 4. Income-Tax Officer, Ward-1, Kharsia Marg, near Ambika Petrol Pump, Ambikapur, PIN 497335 (C.G.) ... Respondent(s) ---------------------------------------------------------------------------------- For Appellant :- Mr. S. Rajeshwar Rao, Advocate. For Respondents :- Mr. Amit Choudhary, Advocate along with Mr. Topilal Bareth, Advocate. ---------------------------------------------------------------------------------- 2 / 5 (W.A. No. 520 of 2023) Division Bench Hon'ble Shri Justice Sanjay K. Agrawal Hon'ble Shri Justice Amitendra Kishore Prasad Judgment on Board [05.09.2024] 1. The present Writ Appeal is directed against the Order dated 7.10.2023 passed in W.P.(T) No.30 of 2022 by which learned Single Judge has dismissed the said Writ Petition holding that in the meanwhile Assessment Order under Section 147/143(3) read with Section 144B of the Income Tax Act, 1961 has been passed by the Assessing Officer on 24.3.2022. 2. Learned Counsel for the Assessee/Appellant submits that despite the Assessment Order under Section 147/143(3) read with Section 144B of the Income Tax Act having been passed on 24.3.2022 during pendency of the Writ Petition, the Writ Petition would be maintainable and therefore learned Single Judge ought to have entertained the Writ Petition. 3. Learned Counsel for the Respondents however submits that once the Assessment Order has been passed on 24.3.2022 during pendency of the Writ Petition, learned Single Judge is absolutely justified in declining to 3 / 5 (W.A. No. 520 of 2023) interfere with the Assessment Order on the ground of an alternative efficacious remedy being available to prefer an appeal under Section 246A of the Income Tax. 4. We have heard learned Counsel for parties, considered their rival submissions and also perused the record with utmost care and circumspection. 5. Admittedly, W.P.(T) No.30/2022 was filed by the Petitioner on 11.2.2022 questioning the assessment proceeding initiated under Section 147 of the Income Tax Act as well as issuance of notice under Section 148 of the Income Tax Act. During the pendency of the said Writ Petition, the Assessment Order was passed by the Assessing Officer, National Faceless Appeal Centre on 24.3.2022. However, the Petitioner/Appellant did not amend the Writ Petition questioning the Assessment Order passed on 24.3.2022 nor did he file appeal under Section 246A of the Income Tax Act. Ultimately, learned Single Judge, by the impugned Order dated 7.10.2023, proceeded to dismiss the Writ Petition holding that since the Assessment Order has already been passed on 24.3.2022 during the pendency of the Writ Petition, there being an alternative efficacious remedy available to the Petitioner, the Petitioner was permitted to file an 4 / 5 (W.A. No. 520 of 2023) appeal against the Assessment Order within a period of 30 days from the date of receipt of the order. 6. Since the initiation of the proceeding under Section 147/148 of the Income Tax was sought to be challenged in the Writ Petition and meanwhile a final Assessment Order was passed on 24.3.2022 against which an alternative efficacious remedy was available to the Petitioner/Appellant to file an appeal under Section 246A of the Income Act, learned Single Judge is absolutely justified in holding that the Petitioner has an alternative remedy to file an appeal under Section 246A of the Income Act against the said Assessment Order dated 24.3.2022. We, therefore, decline to exercise our writ appellate jurisdiction to interfere with the impugned Order dated 7.10.2023 passed by learned Single Judge which appears to be just and proper. 7. At this stage, learned Counsel for the Appellant prays that one month’s time may be granted to file an appeal and meanwhile the interim order dated 20.12.2023 passed by this Court may also be extended for a period of one month, which the learned Counsel for the Respondents has also graciously agreed to allow the Appellant to grant one month’s time to prefer appeal. 5 / 5 (W.A. No. 520 of 2023) 8. In that view of the matter, we permit the Appellant to file an appeal under Section 246A of the Income Tax within a period of one month from today and for the period of one month, the interim order dated 20.12.2023 passed by this Court shall remain in operation. 9. However, considering the fact that since more than two years have already elapsed after passing of the Assessment Order dated 24.3.2022, the Appellate Authority is expected to consider and decide the appeal, if made, at the earliest strictly in accordance with law. 10. With aforesaid observations, the Writ Appeal stands disposed of. 11. Let a certified copy of this judgment be released today itself to the parties, if applied. Sd/- Sd/- (Sanjay K. Agrawal) (Amitendra Kishore Prasad) sharad Judge Judge SHARAD KUMAR YADAV Digitally signed by SHARAD KUMAR YADAV Date: 2024.09.05 17:36:09 +0530 "