2022 (4) TMI 1456 - HC - Income Tax

Court emphasizes approaching Appellate Authority for tax appeal, dismisses direct challenge. Procedural compliance crucial.

Gem Edible Oils Private Limited, rep. by its Managing Director Versus The Additional/Joint/Deputy/Assistant Commissioner, of Income Tax/Income-tax Officer, National Faceless Assessment Centre, Delhi, The Deputy Commissioner of Income Tax, Corp Circle 1, Coimbatore

The Court dismissed the writ petition challenging an assessment order under the Income Tax Act, emphasizing the need to approach the Appellate Authority ... Assessment order u/s 147 r.w.s. 144B - as argued reply given by the petitioner to the show cause notice has not been considered or not properly considered or not considered in a proper perspective - HELD THAT:- As this Court finds that there has been consideration of the reply, but, whether based on such consideration, any error has been committed or mistake is committed by the Assessing Authority in considering such reply given by the petitioner is a minute factual details, which cannot be gone into by this Court under Article 226 of the Constitution, because if there is any procedural violation of principles of natural justice or for want of jurisdiction, then only, the extraordinary jurisdiction of this Court become invokable, challenging the assessment order directly before this Court and in respect of other cases, assessee has to go before the Appellate Authority to file quantum appeal. This is one such case, where, the petitioner has to be relegated before the Appellate Authority. This writ petition is dismissed, of-course, with a liberty to file quantum appeal before the Appellate Authority in the manner known to law within a period of two weeks from the date of receipt of a copy of this order. Issues:Challenge to assessment order under Section 147 read with Section 144B of the Income Tax Act, 1961; Consideration of reply to show cause notice; Jurisdiction of the Assessing Authority; Procedural violation of principles of natural justice.Analysis:The petitioner filed a Writ of Certiorari seeking to quash the assessment order dated 29.03.2021 made under Section 147 read with Section 144B of the Income Tax Act, 1961. The notice under Section 148 of the Act was issued on 29.03.2021, and the return was filed by the assessee on 04.09.2021. Subsequently, a Section 143(2) notice was issued on 15.11.2021, followed by another notice on 16.02.2022. The petitioner requested the reasons for reopening on 01.03.2022, which were provided on 14.03.2022. Despite the petitioner not objecting to the reasons for reopening, a show cause notice was issued on 19.03.2022, to which the petitioner responded. The Revenue passed the order of assessment on 29.03.2022 based on the response provided by the petitioner.The petitioner's counsel argued that the response to the show cause notice was not properly considered by the Assessing Authority. However, the Court found that the reply was indeed considered. The Court emphasized that it cannot delve into minute factual details under Article 226 of the Constitution unless there is a procedural violation of principles of natural justice or a lack of jurisdiction. In this case, the Court held that the petitioner should approach the Appellate Authority for a quantum appeal rather than challenging the assessment order directly before the Court. Therefore, the writ petition was dismissed, granting the petitioner the liberty to file a quantum appeal before the Appellate Authority within two weeks from the date of receipt of the order.In conclusion, the Court's decision highlights the importance of adhering to procedural requirements and jurisdictional aspects in tax assessment matters. It underscores the need for parties to follow the appropriate legal avenues for challenging assessment orders, emphasizing the role of the Appellate Authority in addressing such disputes.