Income Tax: Pre-Consultation Notice u/s 148A(b) cannot be Challenged through Writ Petition, rules Madhya Pradesh HC [Read Order]

In a significant ruling, the Madhya Pradesh High Court, while dismissing a writ petition, has held that the notice under section 148A(b) of the Income Tax Act, 1961 cannot be challenged through a writ petition since the Act provides for a statutory remedy for the same.

The assessee, Mr. Harinder Singh Bedihas challenged an order and notice issued under Section 148 of the Income Tax Act, 1961 on the ground that the same are in violation of the judgment dated 04.05.2022 passed by the Supreme Court in the case of Union of India and others vs. Ashish Agarwal.

A division bench comprising Chief Justice Ravi Malimath and Justice Vishal Mishra observed that the Section 246 of the Income Tax Act, 1961 provides an appeal.

“Therefore, the petitioner is having a remedy to challenge the order/notice by way of filing an appeal and the ground raised by him with respect to jurisdiction of the authorities can always be considered by the authorities. Even otherwise, a writ petition against a show cause notice is not maintainable in view of the law laid by Hon’ble Supreme Court in the case of KunishettySatyanarayan. The Hon’ble Supreme Court while modifying the judgment has granted two weeks time to reply to show cause notice.”

Dismissing the writ petition, the Court held that “In view of the aforesaid, this Court refrains to interfere in the impugned orders/notices passed by the authorities as the same is issued in pursuance to judgments passed by the Hon’ble Supreme Court. The present petition is held to be not maintainable in view of the law laid down by the Hon’ble Supreme Court in the case of Kunishetty Satyanarayan (supra) and in view of availability of alternative efficacious remedy to the petitioner.”

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates