Writ Petition challenging Sec 148 Notice is maintainable before the High Court: Supreme Court [Read Order]

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The Supreme Court recently, remanded the writ petitions dismissed by the High Courts on ground that such petitions are not maintainable before the Court by pointing out the Apex Court decision in Commissioner of Income Tax and others vs. Chhabil Dass Agarwal.

In the instant case, the High Courts in various cases, has dismissed the writ petitions challenging the notices issued u/s 148 and the reasons which were recorded by the Assessing Officer for reopening the assessment. 

While allowing the appeal, the Apex Court bench comprising of Justice observed that the order of dismissal is against the principle laid down in the case Calcutta Discount Limited Company vs. Income Tax Officer, Companies District I, Calcutta & Anr.

“We find that the High Courts in all these cases have dismissed the writ petitions preferred by the appellant/assessee herein challenging the issuance of notice under Section 148 of the Income Tax Act, 1961 and the reasons which were recorded by the Assessing Officer for reopening the assessment. These writ petitions are dismissed by the High Courts as not maintainable. The aforesaid view taken is contrary to the law laid down by this Court in Calcutta Discount Limited Company vs. Income Tax Officer, Companies District I, Calcutta & Anr. [(1961) 41 ITR 191 (SC)]. We, thus, set aside the impugned judgments and remit the cases to the respective High Courts to decide the writ petitions on merits.” The Court said.

“We may make it clear that this Court has not made any observations on the merits of the cases, i.e. the contentions which are raised by the appellant challenging the move of the Income Tax Authorities to re-open the assessment. Each case shall be examined on its own merits keeping in view the scope of judicial review while entertaining such matters, as laid down by this Court in various judgments.” The bench added.

Read the full text of the order below.

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