2026 (7) TMI 509

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....sposing the objections filed by the petitioner regarding the jurisdiction to reopen the assessment. The petitioner is also challenging notice dated 30.03.2025, issued under section 148 of the Income Tax Act, 1961 (for short "the Act"). The petitioner is also challenging the assessment order dated 10.03.2026 consequent to the re-opening proceedings. 2. The captioned writ petition being Special Civil Application No.7485 of 2026 is taken up as lead matter since the issue involved is common. 3. The brief facts of the case are that, search was initiated at the premises of Khavda Travels Limited on or around 11.11.2022. The respondents claim that the premises of Khavda Travels Limited was used for carrying out cash financing business. The s....

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....y & Finance as on 28.05.2018, as reflected in the tally ledger. The Assessing Officer has mechanically aggregated debit and credit entries to artificially cross the statutory threshold. Such aggregation is legally impermissible and demonstrates complete non-application of mind. Hence, the assumption of jurisdiction is therefore vitiated and liable to be quashed. No further contention is raised. 7. Per Contra, learned Senior Standing Counsel Mr. Maunil Yajnik while pointing out the judgment of the Supreme Court in the case of Commissioner of Income-tax and Ors. Vs. Chhabil Dass Agarwal, 2014 (1) SCC 603, has submitted that since the assessment order dated 10.03.2026 under Section 147 of the Act is already passed, the petitioner has an alt....

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....he Act permits reopening of assessment by issuing notice under Section 148 of the Act after 3 years but not more than 5 from the end of relevant assessment year, if the information of escapement of income chargeable to tax amounts to or is likely to amount to fifty lakh rupees or more. Thus, the petitioner is seeking quashing of the assessment order passed under section 147 of the Act after participating in the assessment proceedings which were initiated vide Notice dated 30.03.2025 under section 148 of the Act. Such a submission if is accepted will lead to an abstruse scenario. The provision of Section 149(1)(b) of the Act permits reopening of assessment by using the expression if the income chargeable to tax amounts to or "is likely to am....

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....and other similar judgments that the High Court will not entertain a petition under Article 226 of the Constitution if an effective alternative remedy is available to the aggrieved person or the statute under which the action complained of has been taken itself contains a mechanism for redressal of grievance still holds the field. Therefore, when a statutory forum is created by law for redressal of grievances, a writ petition should not be entertained ignoring the statutory dispensation. 20 In the instant case, the Act provides complete machinery for the assessment/re-assessment of tax, imposition of penalty and for obtaining relief in respect of any improper orders passed by the Revenue Authorities, and the assessee could not be p....