Law: Income Tax Act, 1961

Section: 147,148,246

Section 148, read with section 147 of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 1978-79 - Income-tax authorities issued a notice under section 148 to assessee-company - Instead of filing reply to show-cause notice, assessee filed instant writ petition challenging validity of said notice - Whether since disputed questions of fact and law were involved in petition, no ground was found for any interference in writ jurisdiction of Court, more so, when final orders had yet to be passed by competent authority under section 147 and remedy of filing appeal under section 246 was also provided under Act - Held, yes FACTS The revenue authorities issued a notice under section 148 to the assessee-company. Instead of filing reply to the show-cause notice before the competent authority, the assessee filed the instant writ petition challenging the validity of said notice. HELD Only a show-cause notice had been issued to the assessee under section 148 for escaped assessment under section 147. The final orders had yet to be passed by the competent authority under section 147. There was a remedy of appeal provided under section 246 itself. In the facts and circumstances of the instant case, since disputed questions of fact had law were involved in the instant writ petition, no ground was found for any interference in the instant writ petition in the writ jurisdiction of the Court at this stage, more so, when the final order had yet to be passed by the competent authority and remedy of filing of appeal was also provided under the Act. Note: Decision was against the assessee. CASES REFERRED TO CIT v. Burlop Dealers Ltd. [1971] 79 ITR 609 (SC), Addl. CIT v. Ganeshilal Lal Chand [1985] 154 ITR 274 (Raj.), ITO v. Madnani Engineering Works Ltd. [1979] 118 ITR 1 (SC), Indian Oil Corporation v. ITO [1986] 159 ITR 956 (SC) and Phool Chand Bajrang Lalv. ITO [1993] 203 ITR 456 (SC). JUDGMENT Ashok Parihar, J.-The petitioner has challenged the notice dated December' 3, 1982, issued by respondent No. 2 under section 148 of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"), for escaped assessment for the assessment year…

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