While confirming the order of the Income Tax Appellate Tribunal, the Kerala High Court observed that an order passed section 158BC and 158BD of the Income Tax Act, 1961 shall be initiated and concluded by the same officer.
In the instant case, proceedings under section Section 158BD and 158BC of the Income Tax Act were initiated against the assessee. The assessee challenged the order on ground that the officer, who concluded the proceedings under Section 158BC of the Income Tax Act is different from the officer, who initiated the proceedings under Section 158BD of that Act. The Appellate Tribunal allowed the appeal preferred by the assessee. The Revenue approached the high Court against the said order.
The division bench comprising of Justice Thottathil B Radhakrishnan and Justice Anu Sivaraman while dismissing the appeal found that, the issue is squarely covered by the decision of the Supreme Court in Maheshwari v. Assistant Commissioner of Income Tax. Based on this, the Court observed that “The issue that arises for decision relates to compatibility of proceedings under Section 158BD and 158BC of the Income Tax Act, 1961. On the facts of the case, it is not in dispute that the officer, who concluded the proceedings under Section 158BC of the Income Tax Act is different from the officer, who initiated the proceedings under Section 158BD of that Act. Therefore, it is sine quo non in law that the officer, who initiated the proceedings under Section 158BD ought to have recorded satisfaction as to the existence of grounds to invoke Section 158BD of the Income Tax Act.”
Read the full text of the Judgment below.
