S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Income from other sources-Failure to respond to notice-Audit objection after amendment-Factual disputes cannot be adjudicated in writ proceedings when an alternative remedy is available-Writ petition is dismissed with liberty to file an appeal. [S. 57, 142(1), 143(3), 148, 148A(b), 148A(d), Art. 226]
The petitioner, an individual, filed his return of income for AY 2017-18 on 3 August 2017, which was selected for scrutiny under Section 142(1) to examine the deduction claim under Section 57. During the original assessment, the petitioner submitted an email response with evidence to establish the nexus between the income from other sources and the claimed deduction. The assessment order under Section 143(3) was passed on 24 December 2019, accepting the return without explicitly mentioning the petitioner’s response. On 16 March 2024, a notice under Section 148A(b) was issued, requiring the petitioner to submit a reply by 25 March 2024 via email. The notice was based on audit objections, stating that no documentary evidence or bank statement was found to substantiate the interest expense claimed under Section 57. The petitioner did not file a reply within the stipulated time and did not seek an adjournment. Instead, he submitted his reply on 27 March 2024 via email, after the deadline. On 28 March 2024, an order under Section 148A(d) was passed, along with a reassessment notice under Section 148, citing no explanation was provided by the petitioner. The petitioner then filed a writ petition challenging the reassessment. The court noted that the petitioner failed to reply within the prescribed time and had not annexed the attachments referred to in his response, making it impossible to verify the claim that the issue was already examined during the original assessment. The court declined to exercise its discretionary jurisdiction, observing that factual disputes could not be adjudicated in writ proceedings and that an alternative remedy was available. The court dismissed the writ petition, granting liberty to the petitioner to challenge the reassessment before the appellate authority. [WP(L) No. 31458/2024, dt. 26.02.2025, (AY. 2017-18)
Sanjay Patel v. ACIT(Bom) (HC) www.itatonline.org
[Coram : Hon’ble Shri Justice M.S. Sonak & Hon’ble Shri Justice Jitendra Jain]