Writ Court does not act either as AO or Appellate Authority to decide Taxability of Receipt: Calcutta HC upholds Assessment Order [Read Order]

A Single Bench of Justice Md. Nizamuddin of Calcutta High Court upholding the final assessment order held that the writ court does not act either as an Assessing Officer or an Appellate Authority to decide the taxability of the receipt.

The writ petition filed by Sri Ramakrishna Murthy and others challenges the assessment order under Section 147 read with Section 144/144B of the Income Tax Act, 1961. The assessment order was based on a notice issued under Section 148 of the Income Tax Act.

Majumder, senior advocate appeared for the respondent submitted that in the course of the aforesaid assessment proceeding, a show cause notice was issued and the assessing officer at the time of passing final assessment order has taken a different view from the view it has taken in the show cause notice.

After evaluating the facts and circumstances of the case, the bench observed that this particular case does not fall within the categories where the proceedings initiated were without jurisdiction or initiated by an officer lacking inherent jurisdiction. Additionally, there were no procedural irregularities, non-speaking order, or violations of principles of natural justice by denying the petitioner an opportunity for a hearing.

Further noted that the whole argument of the petitioner revolves around the merits of the assessment itself as to whether the receipt in question was taxable or not and at whose hand it was taxable.

The High Court viewed that “the Writ Court while dealing with an assessment order does not act either as an assessing officer or an appellate authority and the merit of the assessment and the issue of taxability and at whose hand the receipt is to be taxable can be decided by statutory appellate authority who has got wide jurisdiction go into the facts and law and it will not be proper on the part of the Writ Court to decide the aforesaid issues.”

Thus, concluded that there was no reason to interfere with the aforesaid impugned appealable assessment order and accordingly the writ petition was dismissed.

To Read the full text of the Order CLICK HERE

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