In a major decision a Single Judge Bench of the Calcutta High Court observed that the writ jurisdiction of a Constitutional Court cannot be Invoked when an order under Section 148A(d) of the Income Tax Act, 1961 culminated into final assessment order.
By the writ petition, the petitioner, Tezas Trading Co. Private Limited, has challenged the impugned order under Section 148A(d) of the Income Tax Act, 1961 relating to assessment year 2014-15. But during the pendency of the writ petition final assessment order under Section 147 of the Act has already been passed, which is an appealable order under the statute and furthermore the said assessment order is not a subject matter of challenge in this writ petition.
Under Section 148A of the Income Tax Act, the assessee gets a chance to be heard by the officer. An assessing officer has to give not less than seven days but not more than 30 days to the assessee for furnishing his explanation.
After assessing the taxpayer’s reply, the income tax officer shall decide whether it is a fit case to issue notice for income escaping assessment. If the income tax officer decides to reopen the case, a copy of the order and a notice (under Section 148 of the Income Tax Act) must be issued to the taxpayer.
The Court of Justice Md Nizamuddin observed that “Since the impugned order 148A(d) of the Income Tax Act has already been culminated into the final assessment order under Section 147 of the Income Tax Act and alternative remedy by way of statutory appeal is available to the petitioner, without going into the merit of the writ petition, on the ground of availability of alternative remedy, this writ petition being is disposed of by granting liberty to the petitioner to file appeal against the aforesaid assessment order.”
The Bench further noted that the appeal against the assessment order has to be filed within a period of fifteen days from date and if such appeal is filed by the petitioner within the time stipulated herein, the appellate authority shall consider and dispose of the said appeal on merit and in accordance with law without insisting on the point of limitation.
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