TaxTMI 
TaxTMI 
2025 (7) TMI 974
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.... view of the above facts and circumstances, it is most respectfully prayed that this Hon'ble Court may graciously be pleased to: a) Admit the writ application; b) Issue a writ of certiorari or in the nature of certiorari or any other appropriate writ, order or direction for quashing the notice dated 29.04.2025 issued under Section 148 and the Order dated 29.04.2025 passed under Section 148A(3) pursuant to notice dated 20.03.2025 issued under Section 148A(1) of the Income Tax Act, 1961, by the opposite party No.3 for the Assessment Year 2020-21 under Annexure-1 and 3 respectively; c) And if the opposite parties fail to show cause or sufficient cause, then the rule may be made absolute; d) And further your Lordships may please to pass such other order/orders as your Lordships may deemed fit and proper; And for this act of kindness, the petitioner as in duty bound shall ever pray." Facts as pleaded and submissions made by learned counsel for the petitioner: 2. The petitioner, a private limited company carrying on business in trading of sponge iron, billets and mild steel scraps, etc., is stated to have filed e-returns on 08.12.2020 pe....
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....s required under Section 148A(3). 2.4. The petitioner has come up before this Court by way of filing the present writ petition challenging the Notice under Section 148 as well as the Order under Section 148(3). Hearing: 3. The matter is listed for possibility of entertainment of writ petition questioning the Notice under Section 148 of the IT Act issued on being satisfied to initiate proceeding by Order under Section 148A(3). 3.1. As short point has been raised whether the ITO is competent to issue Notice under Section 148 inasmuch as the amount of escapement of income from assessment being quantified at less than Rs. 50,00,000/- in view of interdiction contained in Section 149(1) of the IT Act, on consent, the counsel for respective parties final hearing is conducted today. 3.2. Heard Sri Chitrasen Parida, learned Advocate for the petitioner and Sri Avinash Kedia, learned Junior Standing Counsel for the opposite parties. Arguments: 4. Sri Chitrasen Parida, learned Advocate appearing for the petitioner advanced following submissions: (i) After expiry of three years and three months from the end of the relevant Assessment Year 2020-21, Notice dated 29.0....
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....ssessee a notice, along with a copy of the order passed, if required, under clause (d) of Section 148A, requiring him to furnish within a period of three months from the end of the month in which such notice is issued, or such further period as may be allowed by the Assessing Officer on the basis of an application made in this regard by the assessee, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under Section 139: Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice: Provided further that no....
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....on on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee, the Assessing Officer shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee where the search is initiated or books of account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or other valuable article or thing or books of account or documents are seized or requisitioned in case of any other person. Explanation-3.- For the purposes of this section, specified authority means the specified authority referred to in Section 151. 148A. Conducting inquiry, providing opportunity before issue of notice under Section 148.- The Assessing Officer shall, before issuing any notice under Section 148,- (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment; (b) provide an opportunity of being heard to the assessee, by serving upon him a notice to show cause wit....
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....ssessee. Explanation.- For the purposes of this section, specified authority means the specified authority referred to in Section 151. 148. Issue of notice where income has escaped assessment.- (1) Before making the assessment, reassessment or recomputation under Section 147, the Assessing Officer shall, subject to the provisions of Section 148A, issue a notice to the assessee, along with a copy of the order passed under sub-section (3) of Section 148A, requiring him to furnish, within such period as may be specified in the notice, not exceeding three months from the end of the month in which such notice is issued, a return of his income or income of any other person in respect of whom he is assessable under this Act during the previous year corresponding to the relevant assessment year. Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year: Provided further that where the Assessing Officer has received information under the scheme notified under Section 135A, no....
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....On receipt of the notice under sub-section (1), the assessee may furnish his reply within such period, as may be specified in the notice. (3) The Assessing Officer shall, on the basis of material available on record and taking into account the reply of the assessee furnished under sub-section (2), if any, pass an order with the prior approval of the specified authority determining whether or not it is a fit case to issue notice under Section 148. (4) The provisions of this section shall not apply to income chargeable to tax escaping assessment for any assessment year in the case of an assessee where the Assessing Officer has received information under the scheme notified under Section 135A. Explanation.- For the purposes of this section and Section 148, "specified authority" means the specified authority referred to in Section 151. Analysis and discussions: 7. The facts are undisputed that alleging bogus purchases to the tune of Rs. 34,99,247/- effected from M/s. Madhumita Steel Industries during the Financial Year 2019-20 [related to Assessment Year 2020-21] which is stated to have escaped assessment of tax, the petitioner was issued with Notice dated 12.03.2024 ....
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....on, as a possibility *** 2. Bring (an idea, possibility, etc.) into the mind: *** 3. (reflex) come into the mind: An idea suggests itself to me, has occurred to me." 7.4. From an analogous reading of the Order passed under Section 148A and the Notice under Section 148, it is understood that the Assessing Officer is in possession of "information" about bogus purchases made by the petitioner during the Financial Year 2019-20. Section 148A uses the word "information" which triggers action by the Assessing Officer. The connotation of "information" in the context of reopening of assessment has succinctly been laid down in the case of Larsen & Toubro Limited Vrs. State of Jharkhand, (2017) 103 VST 1 (SC) (Paragraphs 21, 22 & 27) = (2017) 13 SCC 780 which may be reproduced herein below: "21. It is also pertinent to understand the meaning of the word 'information' in its true sense. According to the Oxford Dictionary, 'information' means facts told, heard or discovered about somebody/something. The Law Lexicon describes the term 'information' as the act or process of informing, communication or reception of knowledge. The expression 'information' means instruc....
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....sessing authority extends to reopening of assessment, if for any reason, the whole or any part of the turnover of the business of the dealer has escaped assessment or has been under assessed and the assessment in such a case would be valid even if the materials, on the basis of which the earlier assessing authority passed the order and the successor assessing authority proceeded, were same. ***" 7.5. The action based on the subjective opinion or satisfaction can judicially be reviewed first to find out the existence of the facts or circumstances on the basis of which the authority is alleged to have formed the opinion. It is true that ordinarily the Court should not inquire into the correctness or otherwise of the facts found except in a case where it is alleged that the facts which have been found existing were not supported by any evidence at all or that the finding in regard to circumstances or material is so perverse that no reasonable man would say that the facts and circumstances exist. The Courts will not readily defer to the conclusiveness of the authority's opinion as to the existence of matter of law or fact upon which the validity of the exercise of the power is predi....
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....purpose, then it will be deemed that the power has not been validly exercised. If the power in this case is found not to have been exercised genuinely for the purpose of taking immediate action but has been used only to avoid embarrassment or wreck personal vengeance, then the power will be deemed to have been exercised improperly. The grounds which are relevant for the purpose for which the power can be exercised have not been considered or grounds which are not relevant and yet are considered and an order is based on such grounds, then the order can be attacked as invalid and illegal. On the same principle, the administrative action will be invalidated if it can be established that the authority was satisfied on the wrong question. The aforesaid principles of exercise of power vis-à-vis validity of exercising power has been discussed elaborately by the Hon'ble Supreme Court of India in Amarendra Kumar Pandey Vrs. Union of India, 2022 SCC OnLine SC 881. 7.6. "Proceeding" is frequently used to denote a step in an action and obviously it has that meaning in such phrases as proceeding in any cause or matter. When used alone, however, it is in certain statutes to be construe....
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....opted in the prosecution or defense of an action, including the pleadings and Judgment." The term 'proceeding' would only mean a legal process taken to enforce the rights. The dictionary meaning of the word "proceeding" is "the institution of a legal action, any step taken in a legal action". In general sense, it is the form and manner of conducting juridical business before a Court or judicial officer; and regular and orderly progress in form of law including all possible steps in an action from its commencement to the execution of judgment. Term also refers to administrative proceedings before agencies, tribunals, bureaus or the like. See: Most Rev. P.M.A. Metropolitan Vrs. Moran Mar Marthoma, 1995 Supp (4) SCC 286 = AIR 1995 SC 2001. In P.L. Kantha Rao Vrs. State of AP, AIR 1995 SC 807 = (1995) 2 SCC 471, it is stated that the word 'proceeding' would depend upon the scope of the enactment wherein the expression is used with reference to a particular context where it occurs. It may mean a course of action for enforcing legal right. In the journey of litigation, there are several stages, one of which is the realisation of the judicial adjudication which attained finality. Th....
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....rom the date on which the contempt is alleged to have been committed. In the Pallav Sheth Vrs. Custodian, (2001) 107 Comp Cas 76 (SC) = (2001) 7 SCC 549 it has been held that in the case of suo motu proceedings, contempt proceeding must be initiated by the Court by issuing a notice and in other cases initiation can only be by a party filing an application. Under Section 20 of the Contempt of Courts Act, 1971 action can be initiated, either by filing an application or by the Court issuing notice suo motu, within a period of one year from the date on which the contempt is alleged to have been committed. In Kishan Lal & Co. Vrs. Additional Commissioner of Commercial Tax, (2017) 102 VST 343 (Chhatisgarh) = 2017 SCC OnLine Chh 584 the initiation of proceeding has been described in the following manner: "11. The word 'initiate' or 'initiation' has not been defined in the Act. Since it has not been defined in the Act, it would be appropriate to refer to the dictionary meaning of the word 'initiate'. In Webster's Third New International Dictionary, the word 'initiate' has been defined as to begin or set going; make a beginning of; perform or facilitate the first actions, steps ....
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....by the revisional authority for suo motu proceeding or on the basis of the information received and he decides to issue notice as contemplated under Rule 61 of the Chhattisgarh Value Added Tax Rules, then the exercise of initiation is complete and initiation cannot be said to be made only when the notice is received under Rule 61 by the assessee." 7.9. Perusal of record reveals that after passing of the Order dated 29.04.2025 under Section 148A(3) in compliance of the remand order being passed by this Court in the first writ petition and issue of notice for assessment under Section 148 of the IT Act pertaining to Assessment Year 2020-21, the petitioner has participated in the proceeding and can avail further opportunities not only before the Assessing Officer but also before the other statutory Authorities, if circumstances so warrant. In the above premises, it is unwarranted to show indulgence in matter pertaining to Order dated 29.04.2025 passed under Section 148A(3) and Notice dated 29.04.2025 issued under Section 148 of the IT Act in exercise of extraordinary jurisdiction under Article 226/227 of the Constitution of India. Acceding to the contention of the petitioner would t....
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....e to Anantdeep Singh Vrs. The High Court of Punjab and Haryana at Chandigarh, (2024) 9 SCR 135 may not be inept in the present context, wherein it has been stated thus: "Once the termination order is set aside and judgment of the High Court dismissing the writ petition challenging the said termination order has also been set aside, the natural consequence is that the employee should be taken back in service and thereafter proceeded with as per the directions. Once the termination order is set aside then the employee is deemed to be in service. We find no justification in the inaction of the High Court and also the State in not taking back the appellant into service after the order dated 20.04.2022. No decision was taken either by the High Court or by the State of taking back the appellant into service and no decision was made regarding the back wages from the date the termination order had been passed till the date of reinstatement which should be the date of the judgment of this Court. In any case, the appellant was entitled to salary from the date of judgment dated 20.04.2022 till fresh termination order was passed on 02.04.2024. The appellant would thus be entitled to f....
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....ncial Year 2019-20 being less than Rs. 50,00,000/-, i.e., the amount escaped assessment, the ITO is denuded of power to issue Notice under Section 148 of the IT Act. 9.1. In this respect this Court has ventured to read in-between lines contained in Order dated 29.04.2025 (Annexure-3), wherein the following is recorded by the ITO in order to afford an opportunity to the petitioner whether to proceed any further with the Notice dated 29.04.2025 issued under Section 148 of the IT Act: "7. Therefore, the fact of this case suggest that income chargeable to tax of Rs. 33,99,247/- has escaped assessment within the meaning of Section 147 of the Act for the Financial Year 2019-20 relevant to Assessment Year 2020-21. 8. In view of the above facts and circumstances, on the basis of material available on record and considering the reply of the assessee, it is considered that it is a fit case for issue of notice under Section 148 of the Act in the case of M/s. Utkal Trading Company Pvt. Ltd., PAN: AAACU3980G for the Financial Year 2019-20 relevant to Assessment Year 2020-21." 9.2. The Notice dated 29.04.2025 under Section 148 reveals thus: "2. I, therefore, prop....
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.... Provided further that the provisions of this sub-section shall not apply in a case, where a notice under Section 153A, or Section 153C read with Section 153A, is required to be issued in relation to a search initiated under Section 132 or books of account, other documents or any assets requisitioned under Section 132A, on or before the 31st day of March, 2021: Provided also that for cases referred to in clauses (i), (iii) and (iv) of Explanation 2 to Section 148, where,- (a) a search is initiated under Section 132: or (b) a search under Section 132 for which the last of authorisations is executed; or (c) requisition is made under Section 132A, after the 15th day of March of any financial year and the period for issue of notice under Section 148 expires on the 31st day of March of such financial year, a period of fifteen days shall be excluded for the purpose of computing the period of limitation as per this section and the notice issued under Section 148 in such case shall be deemed to have been issued on the 31st day of March of such financial year: Provided also that where the information as referred to in Explanation I to....
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....sions of sub-section (1) as to the issue of notice shall be subject to the provisions of Section 151. 149. Time limit for notices under sections 148 and 148A. (1) No notice under Section 148 shall be issued for the relevant assessment year- (a) if three years and three months have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) (b) if three years and three months, but not more than five years and three months, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence related to any asset or expenditure or transaction or entries which show that the income chargeable to tax, which has escaped assessment, amounts to or is likely to amount to fifty lakh rupees or more. (2) No notice to show cause under Section 148A shall be issued for the relevant assessment year,- (a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if three years, but not more than five years, have elapsed from the end of the relevant assessment year unless the in....
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....ergone an amendment by the Finance Act, 2021, and consequently the matter would require a deeper and in depth consideration keeping in view the earlier case law. Accordingly, we set aside the observations made by the High Court in the impugned judgment observing that the writ petition would not be maintainable in view of the alternative remedy, clarify that this issue would be examined in depth by the High Court if and when it arises for consideration. We do deem it open to examine this issue in the present case after having examined the notice under Section 148A(b) including the annexure thereto, the reply filed by the petitioner and the order under Section 148A(d) of the Income-tax Act, 1961. Recording the aforesaid, the special leave petition is disposed of. We clarify that the dismissal of the special leave petition would not be construed as a finding or observation on the merits of the case. Pending application(s), if any, shall stand disposed of.' 4. As the court views it although the aforementioned order did not take note of the order of the co-ordinate Bench of the Supreme Court of India in Anshul Jain (supra), the net result is that the Supreme C....
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....d settled proposition of law, we find that there is no reason to warrant interference by this Court in exercise of the jurisdiction under Article 226/227 of the Constitution of India at this intermediate stage when the proceedings initiated are yet to be concluded by a statutory authority. Hence the writ petition stands dismissed." 9.8. Since the petitioner is issued with Notice under Section 148 of the IT Act, it is needless to observe that the petitioner shall have fullest of opportunity to raise not only issues with respect to facts but also legal questions which shall be dealt with by the Assessing Officer in the proceeding. In other words, the petitioner shall have opportunity for stating its case, which shall be considered by the Assessing Officer in the order of assessment including the grounds of challenge against the Order dated 29.04.2025 passed under Section 148A. 9.9. It is candidly conceded by Sri Chitrasen Parida, learned Advocate for the petitioner to a query from the Bench during the course of hearing of the present matter that the point at issue raised herein this second round of litigation is not raised before the Assessing Officer appearing before him in pu....
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....nt that its case is covered by the ratio of this Court's decision in Krishi Utpadan Mandi Samiti case [1995 Supp (3) SCC 433]. '10. The issues relating to entertaining writ petitions when alternative remedy is available, were examined by this Court in several cases and recently in State of H.P. Vrs. Gujarat Ambuja Cement Ltd., (2005) 6 SCC 499. 11. Except for a period when Article 226 was amended by the Constitution (Forty-second Amendment) Act, 1976, the power relating to alternative remedy has been considered to be a rule of self-imposed limitation. It is essentially a rule of policy, convenience and discretion and never a rule of law. Despite the existence of an alternative remedy it is within the jurisdiction or discretion of the High Court to grant relief under Article 226 of the Constitution. At the same time, it cannot be lost sight of that though the matter relating to an alternative remedy has nothing to do with the jurisdiction of the case, normally the High Court should not interfere if there is an adequate efficacious alternative remedy. If somebody approaches the High Court without availing the alternative remedy provided, the High Court should ensure....
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....4. In Harbanslal Sahnia Vrs. Indian Oil Corporation Ltd., (2003) 2 SCC 107 this Court held that the rule of exclusion of writ jurisdiction by availability of alternative remedy is a rule of discretion and not one of compulsion and the court must consider the pros and cons of the case and then may interfere if it comes to the conclusion that the Petitioner seeks enforcement of any of the fundamental rights; where there is failure of principles of natural justice or where the orders or proceedings are wholly without jurisdiction or the vires of an Act is challenged. 15. In Veerappa Pillai Vrs. Raman & Raman Ltd., 1952 SCR 583 = AIR 1952 SC 192, CCE Vrs. Dunlop India Ltd., (1985) 1 SCC 260 = AIR 1985 SC 330, Ramendra Kishore Biswas Vrs. State of Tripura, (1999) 1 SCC 472 = AIR 1999 SC 294, Shivgonda Anna Patil Vrs. State of Maharashtra, (1999) 3 SCC 5 = AIR 1999 SC 2281, C.A. Abraham Vrs. ITO, (1961) 2 SCR 765 = AIR 1961 SC 609, Titaghur Paper Mills Co. Ltd. Vrs. State of Orissa, (1983) 2 SCC 433 = AIR 1983 SC 603, H.B. Gandhi Vrs. Gopi Nath & Sons, 1992 Supp (2) SCC 312, Whirlpool Corporation Vrs. Registrar of Trade Marks, (1998) 8 SCC 1 = AIR 1999 SC 22, Tin Plate Co. of In....
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....ly discretionary in character. If the High Court is satisfied that the aggrieved party can have an adequate or suitable relief elsewhere, it can refuse to exercise its jurisdiction. The Court, in extraordinary circumstances, may exercise the power if it comes to the conclusion that there has been a breach of the principles of natural justice or the procedure required for decision has not been adopted. [See N.T. Veluswami Thevar Vrs. G. Raja Nainar, AIR 1959 SC 422, Municipal Council, Khurai Vrs. Kamal Kumar, AIR 1965 SC 1321 = (1965) 2 SCR 653, Siliguri Municipality Vrs. Amalendu Das, (1984) 2 SCC 436, S.T. Muthusami Vrs. K. Natarajan, (1988) 1 SCC 572, Rajasthan SRTC Vrs.Krishna Kant, (1995) 5 SCC 75, Kerala SEB Vrs. Kurien E. Kalathil, (2000) 6 SCC 293, A. Venkatasubbiah Naidu Vrs. S. Chellappan, (2000) 7 SCC 695, L.L. Sudhakar Reddy Vrs. State of A.P., (2001) 6 SCC 634, Shri Sant Sadguru Janardan Swami (Moingiri Maharaj) Sahakari Dugdha Utpadak Sanstha Vrs. State of Maharashtra, (2001) 8 SCC 509, Pratap Singh Vrs. State of Haryana, (2002) 7 SCC 484 and GKN Driveshafts (India) Ltd. Vrs. ITO, (2003) 1 SCC 72.] *** 15. Thus, while it can be said that this Court ha....
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....entertaining the writ petitions at the stage of show cause notice, but it is settled by number of decisions of this Court, where writ petitions can be entertained at the show cause notice stage. Neither it is a case of lack of jurisdiction nor any violation of principles of natural justice is alleged so as to entertain the writ petition at the stage of notice. High Court ought not to have entertained the writ petition, more so, when against the final orders appeal lies to this Court. The judgment of this Court in the case of Union of India Vrs. Guwahati Carbon Ltd., (2012) 11 SCC 651 = 2012 SCC OnLine SC 210 relied on by the learned senior counsel for the appellants also supports their case. In the aforesaid judgment, arising out of Central Excise Act, 1944, this Court has held that excise law is a complete code in order to seek redress in excise matters and held that entertaining writ petition is not proper where alternative remedy under statute is available. When there is a serious dispute with regard to classification of service, the respondents ought to have responded to the show cause notices by placing material in support of their stand but at the same time, there is no reaso....
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....usly as possible in accordance with law and in accordance with the directions given hereinabove. 7. We make it clear that the Assessing Authority will decide the matters uninfluenced by any observations made by the High Court/Tribunal in the earlier round of litigation. 8. All contentions on both sides are expressly kept open. At this stage we do not wish to express any opinion on the merits of the case." 10.8. In an identical case relating to writ petition questioning the Show Cause Notice relating to service tax under Chapter-V of the Finance Act, 1994, viz. Bhubaneswar Development Authority Vrs. Commissioner of Central Excise, 2015 SCC OnLine Ori 53, this Court observed as follows: "5. After hearing the learned counsel for the respective parties, it would be relevant herein to take note that the judgment of the Hon'ble Supreme Court in the case of Collector of Central Excise, Hyderabad Vrs. M/s. Chemphar Drugs and Liniments, Hyderabad, (1989) 2 SCC 127 and in particular, Para-9 thereof is quoted as hereunder: '9. *** In order to make the demand for duty sustainable beyond a period of six months and up to a period of 5 years in view of the p....
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....ed the appeal filed by the revenue on the basis that it did not want to interfere the facts determined by the Tribunal in the said case. 8. In the present set of circumstances of the case, any finding by the Court at this stage is likely to be prejudicial, either the Petitioner-BDA or the Service Tax Authority. ***" 10.9. In Supreme Paper Mills Limited Vrs. Assistant Commissioner of Commercial Taxes, (2010) 11 SCC 593 = (2010) 31 VST 1 (SC), the Hon'ble Supreme Court after taking note of earlier case being Sales Tax Officer, Ganjam Vrs. Uttareswari Rice Mills, (1973) 3 SCC 171 = AIR 1972 SC 2617 = (1972) 30 STC 567 (SC) = (1973) 89 ITR 6 (SC), wherein challenge was made to Show Cause Notice, has been pleased to make the following observation: "14. In our considered opinion, the ratio of the aforesaid decision in Uttareswari Rice Mills case, (1973) 3 SCC 171 of this Court is squarely applicable to the facts of the present case. The expression used in Section 11-E of the Act is that the Commissioner must be satisfied on information or otherwise that the registered dealer has furnished incorrect statement of his turnover or furnished incorrect particulars of his s....
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....r. Without going into other details regarding the period of limitations and the circumstances under which show-cause notice can be issued, the crux of the matter is that such determination is after the issuance of show-cause notice followed by affording of opportunity and consideration of representation, if any, made by the person concerned. *** 10. The issuance of show-cause notice under Section 11-A also has some significance in the eye of the law. The day the show-cause notice is issued, becomes the reckoning date for various issues including the issue of limitation. If we accept the submission of the respondent that a prima facie view entertained by the department whether the matter requires to be proceeded with or not is to be taken as a decision or determination, it will create an imbalance in the working of various provisions of Section 11-A of the Act including periods of limitation. It will be difficult to reckon as to from which date the limitation has to be counted. *** 13. It must be noted that while issuing a show-cause notice under Section 11-A of the Act, what is entertained by the Department is only a prima facie view, on the basi....
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....ities as enunciated by the Hon'ble Supreme Court of India. Paragraph 5 of said Judgment speaks as follows: "We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under Section 148 of the Income Tax Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notices. The assessing officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the assessing officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons have been disclosed in these proceedings, the assessing officer has to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment in respect of the above said five assessment years." 10.14. The Hon'ble Supreme Court in the case of State of Maharashtra and Others Vrs. Greatship (India) Limited, 2022 SCC OnLine SC 1262 reiterated the scope for interference where there is existence of statutory remedy in exercise of power under Article 226/227 of the Constitutio....
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....s to be strongly discouraged.' 50. In Punjab National Bank Vrs. O.C. Krishnan, (2001) 6 SCC 569 this Court considered the question whether a petition under Article 227 of the Constitution was maintainable against an order passed by the Tribunal under Section 19 of the DRT Act and observed : (SCC p. 570, paras 5-6) '5. In our opinion, the order which was passed by the Tribunal directing sale of mortgaged property was appealable under Section 20 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (for short 'the Act'). The High Court ought not to have exercised its jurisdiction under Article 227 in view of the provision for alternative remedy contained in the Act. We do not propose to go into the correctness of the decision of the High Court and whether the order passed by the Tribunal was correct or not has to be decided before an appropriate forum. 6. The Act has been enacted with a view to provide a special procedure for recovery of debts due to the banks and the financial institutions. There is a hierarchy of appeal provided in the Act, namely, filing of an appeal under Section 20 and this fast-track procedure cannot be allowed to....
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.... consider whether: (a) adjudication of writ petition involves any complex and disputed questions of facts and whether they can be satisfactorily resolved; (b) the petition reveals all material facts; (c) the petitioner has any alternative or effective remedy for the resolution of the dispute; (d) person invoking the jurisdiction is guilty of unexplained delay and laches; (e) ex facie barred by any laws of limitation; (f) grant of relief is against public policy or barred by any valid law; and host of other factors. The Court in appropriate cases in its discretion may direct the State or its instrumentalities as the case may be to file proper affidavits placing all the relevant facts truly and accurately for the consideration of the Court and particularly in cases where public revenue and public interest are involved. Such directions are always required to be complied with by the State. No relief could be granted in a public law remedy as a matter of course only on the ground that the State did not file its counter-affidavit opposing the writ petition. Further, empty and self-defeating affidavits or statements of Governm....
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....and. Consequently, the requirement of giving an assessee a reasonable opportunity of personal hearing is mandatory." 10.16. The present case is neither a case of lack of jurisdiction nor can there be any allegation of violation of principles of natural justice. It is enunciated in Deepak Agro Foods Vrs. State of Rajasthan, (2008) 7 SCC 748 = (2008) 10 SCR 877 = (2008) 16 VST 454 (SC) as follows: "17. All irregular or erroneous or even illegal orders cannot be held to be null and void as there is a fine distinction between the orders which are null and void and orders which are irregular, wrong or illegal. Where an authority making order lacks inherent jurisdiction, such order would be without jurisdiction, null, non est and void ab initio as defect of jurisdiction of an authority goes to the root of the matter and strikes at its very authority to pass any order and such a defect cannot be cured even by consent of the parties. (See Kiran Singh Vrs. Chaman Paswan, AIR 1954 SC 340). However, exercise of jurisdiction in a wrongful manner cannot result in a nullity- it is an illegality, capable of being cured in a duly constituted legal proceedings. 18. Proceedings ....
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....d, and not open to collateral attack. Therefore even if the proceedings for assessment were taken against a non-registered dealer without the issue of a notice under Section 10(1) that would be a mere irregularity in the assumption of jurisdiction and the orders of assessment passed in those proceedings cannot be held to be without jurisdiction and no suit will lie for impeaching them on the ground that Section 10(1) had not been followed. This must a fortiori be so when the appellant has itself submitted to jurisdiction and made a return. We accordingly agree with the learned Judges that even if the registration of the appellant as a dealer under Section 8 is bad that has no effect on the validity of the proceedings taken against it under the Act and the assessment of tax made thereunder." 10.18. Lack of jurisdiction strikes at the very root of the action/act and want of jurisdiction might vitiate proceedings rendering the orders passed and exercise thereof, a nullity. But a mere error in exercise of jurisdiction would not vitiate the legality and validity of the proceedings and the said order was valid unless set aside in the manner known to law by laying a challenge, subject ....
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....aised, which is subject matter in an adjudicatory process on the facts to be discerned by the Assessing Officer or the competent Appellate Authority, if circumstance so warrants. 10.21. Since the ITO-Assessing Officer has taken a decision upon affording opportunity to the petitioner in course of proceeding under Section 148A and proceeded to issue Notice under Section 148 as a sequel thereof, the petitioner would have ample opportunity to agitate issues before the Assessing Officer. Therefore, this Court holds entertainment of the writ petition at the stage of notice would be premature. Doing otherwise would frustrate the tax administration and adjudication process. This Court is alive to the fact that the statute under consideration, viz., the IT Act and rules framed thereunder, provides sufficient safeguard for the assessee-petitioner, more so, when against the final orders of adjudication, appeal lies. Conclusion: 11. Given the perspective of legal position and the facts on record, it is apparent that the Notice dated 29.04.2025 has been issued for alleged transactions of purchases effected from M/s. Madhumita Steel Industries Pvt. Ltd. under Section 148 contemplating i....