HC can’t dismiss writ filed against Sec. 148A(d) order on ground of availability of alternative remedy: SC

 

INCOME TAX : WP against reassessment notice issued under new provisions can’t be simply dismissed by HC on grounds of alternative remedy available

• The impugned judgment rejecting the writ petition on the ground of alternative remedy does not take into consideration several judgments of this Court, on the jurisdiction of High Court, as writ petitions have been entertained to be examined whether the jurisdiction preconditions for issue of notice under Section 148 of the Income Tax Act, 1961 is satisfied. The provisions of reopening under the Income Tax Act, 1961 have undergone an amendment by the Finance Act, 2021, and consequently the matter would require a deeper and in depth consideration keeping in view the earlier case law. Accordingly, this Court sets aside the impugned judgment of the High Court dismissing the writ petition as not maintainable in view of the alternative remedy and clarifies that this issue would be examined in depth by the High Court if and when it arise for consideration. In the present case, this issue needs to be examined in depth in view of the notice under Section 148A(b) including the annexure thereto, the reply filed by the petitioner and the order under Section 148A(d) of the Income Tax Act, 1961.

Red Chilli International Sales

[2023] 146 taxmann.com 224 (SC)

 

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