2015 (11) TMI 931

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....tioner had an alternative remedy of raising an objection before the Assessing Officer and should not have straightway filed the writ petition. There is no quarrel with the decision given by the Supreme Court but, in the instant case, we are of the opinion that relegating the petitioner to an alternate remedy at this belated stage would amount to travesty of justice. We find that the writ petition was filed in the year 2003 and the same was admitted on 28th July, 2008. Once the petition has been admitted and affidavits have been exchanged, we are of the opinion that the matter should be decided on merits rather than relegating the matter again to the authority on the ground of alternative remedy. The preliminary objection is, accordingly,....

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....re not honest reasons and since no valid reasons had been recorded, the assessment made in pursuance thereto was invalid and, accordingly, the assessment order was quashed. The Commissioner of Income Tax (Appeals) however, observed that the purchase and sales of shares made by the petitioner appears to be dubious transactions and, therefore, directed the Assessing Officer to take action under Section 148 of the Act against the petitioner afresh by recording proper reasons. The department, being aggrieved by the order of the first appellate authority, took permission and filed a second appeal before the Tribunal, which was dismissed and, thereafter, pursued the matter before the High Court by filing an appeal under Section 260A of the Act....

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....icer to take action u/s 148 against the assessee afresh by recording fresh reasons." Based on these reasons, notices were issued against which the present writ petition has been filed for the quashing of these reassessment proceedings. Admittedly, the reassessment proceedings initiated afresh for the second time was made after four years and, consequently, the first proviso to Section 147 comes into operation. For facility, Section 147 and the first proviso is extracted hereunder: "147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 and 153, assess or reassess such income and also any other incom....