Petitioner must appeal reassessment orders to CIT(Appeals) under Section 246 before approaching High Court directly

Bombay HC directed petitioner to pursue alternate remedy of appeal before CIT(Appeals) against reassessment orders under Section 246 of Income Tax Act instead of approaching HC directly. Court noted petitioner was under Official Liquidator's control during relevant assessment period. While rejecting writ petition for lack of efficacious alternate remedy, HC stayed penalty/recovery proceedings under Sections 274 and 271F until appellate authority decides the appeals. Petitioner granted two weeks to file appeals before CIT(Appeals).

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Issues: Challenge to assessment orders, penalty/recovery proceedings, access to e-filing portal, winding up order recall

Challenge to Assessment Orders:
The petition challenges four assessment orders under Section 147 of the Income Tax Act, 1961, issued by the Revenue. The petitioner, a private limited company, argues that during the relevant period, it was under the control of the Official Liquidator due to a winding-up order. The petitioner contends that the assessment orders are prejudicial, illegal, and based on incorrect grounds. The Revenue added income based on funds in escrow and with the State Bank of India, claiming tax deductions were not considered.

Official Liquidator's Response:
The Official Liquidator disputes the petitioner's claims, stating that no statement of affairs was filed, no records were provided, and no funds were with the Official Liquidator. The Official Liquidator asserts that all actions were in accordance with the law and challenges the petitioner's allegations.

Revenue's Position:
The Revenue, represented by counsel, defends the assessment orders and penalty actions as lawful.

Judgment and Directions:
The court notes the petitioner's awareness of the appeal remedy available under Section 246 of the Income Tax Act. Despite the petitioner's concerns about penalty/recovery proceedings, the court directs the petitioner to file an appeal before the Commissioner of Income Tax (Appeals). The court orders that penalty/recovery proceedings be stayed until the appeals are decided. The petitioner is directed to cooperate in the appeal process. The court clarifies that the stay order does not indicate a stance on the merits of the case. The Appellate Authority is to decide independently. The court also ensures the petitioner's access to the e-filing portal for returns.

Conclusion:
The petition is disposed of with directions for the petitioner to file appeals against the assessment orders. The court stays penalty/recovery proceedings pending appeal resolution. The judgment emphasizes the independence of the Appellate Authority in deciding the case's merits. The petitioner is instructed to collaborate in the appeal process, and access to the e-filing portal is facilitated. No costs are awarded in this matter.

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