Writ petitions dismissed as infructuous, parties allowed to raise all grounds before appellate authority

The High Court dismissed the writ petitions as infructuous, granting the petitioners liberty to raise all grounds before the appellate authority. The Court refrained from expressing any opinion on the merits of the case concerning jurisdiction under the relevant sections of the Income Tax Act, 1961.

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Issues involved:
Assessment under section 147 of the Income Tax Act, 1961 for the assessment year 2002-03; Jurisdiction of the High Court to review assessment orders passed under sections 147 and 143(3) of the Act; Dismissal of writ petitions as infructuous with liberty to raise grounds before the appellate authority.

Analysis:

1. Assessment under section 147 of the Income Tax Act, 1961 for the assessment year 2002-03: The petitioners, who were assessees, filed their income tax returns for the assessment year 2002-03. However, the second respondent issued notices under section 148 of the Income Tax Act, 1961, proposing reassessment on the grounds that income chargeable to tax had escaped assessment. This led to the aggrieved petitioners filing writ petitions challenging these notices.

2. Jurisdiction of the High Court to review assessment orders passed under sections 147 and 143(3) of the Act: The High Court admitted the cases and passed interim orders requiring the petitioners to pay 50% of the tax with a default clause. Upon further proceedings, it was revealed that assessment orders had been passed under section 147 read with section 143(3) of the Act, and the petitioners had already filed appeals to the Commissioner of Income Tax (Appeals), Hyderabad. The Court decided not to express any opinion on the merits of the case concerning the exercise of jurisdiction under sections 147 and 143(3) of the Act. The Court held that all issues raised in the writ petitions could be raised along with the grounds of appeal before the appellate authority.

3. Dismissal of writ petitions as infructuous with liberty to raise grounds before the appellate authority: Considering that assessment orders had been passed and the petitioners had availed the statutory remedy by filing appeals, the High Court dismissed the writ petitions as infructuous. The petitioners were granted liberty to raise all available grounds under the law before the appellate authority if the appeals were still pending. The Court made it clear that it would not make any order as to costs in this matter.

In conclusion, the High Court dismissed the writ petitions as infructuous, allowing the petitioners to raise all grounds before the appellate authority. The Court refrained from expressing any opinion on the merits of the case related to the exercise of jurisdiction under the relevant sections of the Income Tax Act, 1961.

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