A Single Bench of the Calcutta High Court dismissed a Writ Petition (WP) noting that an assessment order under Section 147 of Income Tax Act, 1961 is an appealable order.
In the writ petition the petitioner, GK Sports, has challenged the impugned order passed under Section 147 read with Section 144B of the Income Tax Act, 1961 relating to assessment year 2018-2019 on the ground that the same has been passed in violation of principle of natural justice and also on the ground of non-consideration of its reply to the show-cause notice and relevant material as indicated by the assessee petitioner in the said reply in a proper manner.
The Income Tax Act empowers the tax authorities to decide whether the required information and income furnished by a taxpayer is correct. Section 147 of Income Tax Act empowers the Assessing Officer (AO) to reassess an Income Tax Returns if there is any suspicion that the taxpayer has concealed the essential income details leading to an incorrect assessment of income.
The Section 147 of the Income Tax Act aims to prevent any under assessment of assessee’s income. It mentions the conditions under which an Assessing Officer can reassess an Income Tax Return by issuing notice to the taxpayer under Section 148 of Income Tax Act within a set time frame.
A Single Bench of Justice Md. Nizamuddin observed that “I am not inclined to entertain this writ petition for the reason that the impugned assessment order under Section 147 of the Income Tax Act is an appealable order and that the assessment order has been passed by giving elaborate reasons. There is a difference between sufficiency of reason and no reason at all.”
The Court further went on to note that since the Assessing Officer has given its reasons and findings for coming to its conclusion, sufficiency of it and the reasons and findings cannot be appreciated and scrutinized by a writ court under Article 226 of the Constitution of India like an appellate authority.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
