Court allows assessment proceedings, prohibits re-assessment order enforcement, grants liberty to appeal.

The court allowed the assessment proceedings to continue but prohibited the enforcement of the re-assessment order. The petitioner was granted the liberty to appeal the re-assessment order before the Commissioner of Income Tax (Appeals) and requested that any resulting demand not be enforced until the appeal decision. The court refrained from making observations on the case's merits, preserving all pleas and defenses. The Commissioner of Income Tax (Appeals) was directed to address all petitioner submissions, including the validity of the notice under Section 148, and the interim order was vacated, making the re-assessment order effective.

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Issues:
Challenge to notice under Section 148 of the Income Tax Act for AY 2012-13 and disposal of objections. Validity of re-assessment proceedings initiated by the notice.

Analysis:
The petitioner filed a writ petition to challenge a notice issued under Section 148 of the Income Tax Act for the assessment year 2012-13 and the order disposing of objections to the notice. Additionally, the petitioner contested the re-assessment proceedings initiated by the notice. During the initial hearing, it was argued that the approval of the Principal Commissioner of Income Tax (PCIT) under Section 151 had not been provided to the petitioner, despite the respondents' claim that it was enclosed with the order disposing of objections. The petitioner also raised concerns about the objections not being adequately addressed. The court directed the respondents to produce the original records, including the PCIT's approval, for review. The assessment proceedings were allowed to continue, but the re-assessment order was not to be enforced.

The respondents presented the original record showing that the PCIT's approval was obtained before issuing the impugned notice. Subsequently, the Assessing Officer (AO) passed the re-assessment order. During the hearing, Mr. Balbir Singh, counsel for the petitioner, argued that the AO did not adequately address various submissions by the petitioner in the assessment order. While acknowledging potential merit in the petitioner's submission, the court refrained from further examination at that stage. The petitioner was reminded of the statutory right to appeal against the re-assessment order before the Commissioner of Income Tax (Appeals) [CIT (A)] and, if necessary, before the Income Tax Appellate Tribunal (ITAT).

Mr. Singh, on behalf of the petitioner, expressed satisfaction if allowed to raise all pleas before the CIT (A), including challenging the validity of the notice under Section 148. It was requested that any demand resulting from the re-assessment order not be enforced in the meantime. The court, considering the circumstances, granted the petitioner liberty to appeal the re-assessment order before the CIT (A) and directed that any demand arising from the order not be enforced until the CIT (A) decides on the appeal.

The court clarified that no observations on the case's merits were made, preserving all pleas and defenses of both the petitioner and the revenue. The CIT (A) was instructed to address all submissions by the petitioner, including the notice's validity under Section 148. The interim order from the previous hearing was vacated, making the re-assessment order effective from that day.

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