2025 (4) TMI 1699 - HC - Income Tax

Higher authority declines to decide reassessment challenge, directs petitioner to pursue statutory appeal and interim relief options

The HC declined to adjudicate the challenge to the reassessment and instead relegated the petitioner to the statutory appellate remedy, permitting ... Reopening of assessment under old regime - scope of new regime - scope of TOLA - Petitioners submits that there are instances where this Court, after relegating the Assessee to the appellate remedy has issued a stay or restrained taking any coercive measures to enforce the demands. Also recently, the Hon’ble Supreme Court, has also made an order restraining the Respondents from taking any coercive steps to enforce demands until the Hon’ble Supreme Court disposes of the Appeals filed by the Revenue in the case of Hexaware Technologies Ltd. [2024 (5) TMI 302 - BOMBAY HIGH COURT] HELD THAT:- We are relegating the Petitioner to avail of the alternate statutory remedy of Appeal, it would not be appropriate to us to decide on the issue of interim relief pending such Appeal. The Petitioner is free to apply the interim relief and therein, rely upon the decisions which they say, have been passed by this Court and Hon’ble Supreme Court. This will give the appropriate authorities an opportunity to examine the facts of individual cases and decide upon the issue of interim relief comprehensively. Accordingly, we dispose of this Petition by giving the Petitioner liberty to challenge the Assessment Order by instituting an Appeal. Liberty is also granted to the Petitioner to apply for interim relief and to rely on the decisions which, according to them, support their case. All contentions of all parties are explicitly left open to be raised before the Appellate Authority. Heard counsel. Pending final disposal, an Assessment Order dated 27 March 2025 was passed after interim relief was refused. While the Court could address jurisdictional issues, it would be difficult to decide merits of the Assessment Order; the Appellate Court is 'in a position to comprehensively decide on the issues of jurisdiction and merits.' The Petition is disposed by relegating the Petitioner to 'avail of the alternate statutory remedy of Appeal against the Assessment Order dated 27 March 2025.' All contentions raised in the Petition are 'explicitly left open to be raised in such Appeal.' The Petitioner may apply for interim relief before the appellate authority and 'rely upon the decisions' they seek; the Court declines to rule on interim relief while the appeal remedy is available. The appellate/interim authority is expected to consider all contentions and decisions relied upon. No costs; rule disposed.