2019 (7) TMI 881 - SCH - Income Tax

Supreme Court upholds Section 148 notice for 2008-2009 assessment, emphasizes appeal rights. Assessing Officer to follow legal procedures.

The Supreme Court addressed the validity of a notice under Section 148 for the assessment year 2008-2009. The Court emphasized the petitioner's recourse ... Notice under Section 148 - remedy before the Assessing Officer and appellate hierarchy - decision on merits by the Assessing Officer - judicial interference in pending assessment proceedingsNotice under Section 148 - judicial interference in pending assessment proceedings - Maintainability of the special leave petition challenging the notice dated 24th March, 2015 issued under Section 148 in respect of Assessment Year 2008-2009. - HELD THAT: - The Court declined to entertain the challenge to the notice by way of special leave petition and refused to quash or set aside the notice at this stage. The petitioner was directed to raise all objections and pleas before the Assessing Officer in the assessment proceedings; any adverse decision may be pursued in the prescribed appellate hierarchy - first to the Commissioner of Income Tax (Appeals), then to the Tribunal, and thereafter to the High Court under Section 260-A, if applicable. The Court granted liberty to the petitioner to pursue these statutory remedies and emphasised that the Assessing Officer shall decide all issues strictly in accordance with law on merits if the assessment proceedings are still pending.Special leave petition dismissed with liberty to agitate all contentions before the Assessing Officer and through the statutory appeals; no interference with the notice at this stage.Final Conclusion: The special leave petition challenging the Section 148 notice for Assessment Year 2008-2009 is disposed of without deciding the merits; the petitioner is directed to raise all pleas before the Assessing Officer and, if necessary, pursue the normal appellate remedies, and the Assessing Officer is to decide pending assessment proceedings on merits in accordance with law. Issues involved: Validity of notice under Section 148 for assessment year 2008-2009.Analysis:The Supreme Court, comprising Hon'ble Mr. Justice Abhay Manohar Sapre and Hon'ble Ms. Justice Indu Malhotra, addressed the sole question of the legality of the notice issued by the Income Tax Officer under Section 148 for the assessment year 2008-2009. The Court emphasized that the proper course of action for the petitioner would be to present all arguments before the Assessing Officer during the assessment proceedings. If the decision is unfavorable, the petitioner can then appeal to the CIT (Appeals), Tribunal, and subsequently to the High Court under Section 260-A of the Income Tax Act. The Court declined to interfere with the High Court's order, granting liberty to the petitioner to pursue the matter through the appellate process outlined. It was further directed that the Assessing Officer must adjudicate on all issues in compliance with the law if the assessment proceedings are ongoing. Consequently, the special leave petition was disposed of, and any pending applications were also resolved.