Writ petition dismissed for not exhausting appeal remedy. Importance of procedural compliance in tax assessments emphasized.

The Court held that the writ petition challenging the assessment order without availing the appeal remedy was not maintainable. The petitioner was granted liberty to file an appeal against the assessment order within three weeks. The Court emphasized the importance of following the legal process and directed the appellate authority to expedite the hearing. The judgment highlighted the significance of procedural compliance in tax assessments and clarified the need to adhere to the prescribed legal procedures for seeking remedies.

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Issues:
Challenge to assessment order without availing appeal remedy; Maintainability of writ petition; Procedural lapse in passing reassessment order; Legal sustainability of assessment order; Disposal of objections raised by petitioner; Compliance with notice under Section 148 of Income Tax Act; Justifiability of passing assessment order directly; Applicability of GKN Driveshafts (India) Ltd case; Filing appeal against assessment order.

Detailed Analysis:

1. Challenge to Assessment Order without Availing Appeal Remedy:
The petitioner challenged the assessment order dated 28.09.2021 for the Assessment Year 2015-16 without availing the remedy of appeal. The argument was raised in reference to the judgment of GKN Driveshafts (India) Ltd -Vs- ITO, emphasizing the procedural requirement for disposing of objections raised by the assessee before passing the assessment order.

2. Maintainability of Writ Petition:
The petitioner contended that the writ petition challenging the assessment order is maintainable due to the procedural lapse and irregularity in passing the reassessment order without deciding the objections raised by the petitioner. Reference was made to the judgment in the case of Commissioner of Income Tax -Vs- Pentafour Software Employees Welfare Foundation to support the argument that objections raised by the assessee must be disposed of before proceeding with the assessment order.

3. Disposal of Objections Raised by Petitioner:
The core issue revolved around whether the objections raised by the petitioner pursuant to the notice under Section 148 of the Income Tax Act were adequately addressed. The petitioner argued that the objections remained undecided, rendering the assessment order illegal. However, the Revenue contended that the objections were duly considered, and a detailed order was passed before issuing the assessment order.

4. Compliance with Notice under Section 148 of Income Tax Act:
The petitioner highlighted the necessity for the assessing officer to dispose of objections raised by the assessee before proceeding with the assessment order, as mandated by the provisions of the Income Tax Act. The Revenue, on the other hand, maintained that the objections were duly addressed, and the assessment order was passed in compliance with the legal requirements.

5. Applicability of GKN Driveshafts (India) Ltd Case:
Both parties referred to the judgment in the case of GKN Driveshafts (India) Ltd -Vs- ITO to support their respective arguments regarding the procedural compliance with notice under Section 148 of the Income Tax Act. The Court analyzed the applicability of this judgment in the context of the present case to determine the legality of the assessment order.

6. Filing Appeal Against Assessment Order:
Ultimately, the Court concluded that the writ petition was not maintainable for directly challenging the assessment order. The petitioner was granted liberty to file an appeal against the assessment order within three weeks, emphasizing the importance of following the legal process. The Court directed the appellate authority to expedite the hearing and decide the appeal promptly to clarify the legal issue regarding the acceptance of VAT towards expenditure.

7. Conclusion:
In conclusion, the Court disposed of the writ petition without costs, allowing the petitioner to file an appeal against the assessment order within a specified period. The judgment emphasized the importance of following the legal process and seeking remedy through the appropriate channels, highlighting the significance of procedural compliance in tax assessments.

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