SHRI VIVEK KUMAR AGARWAL vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX-3

Facts

The petitioner, Shri Vivek Kumar Agarwal, proprietor of M/s Shree Giriraj Dharan Industries, filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961. The respondents are the Principal Commissioner of Income Tax-3 and the Income Tax Officer, Ward-3, Sikar. During the pendency of the writ petition, a re-assessment order was passed. The petitioner has since preferred an appeal against this re-assessment order, which is currently pending before the appellate authority. The High Court was informed of these developments.

Held

The High Court noted that during the pendency of the writ petition, a re-assessment order had been passed, and the petitioner had filed an appeal against it, which was pending. The petitioner's counsel had no instructions to refute this submission. Consequently, the Court disposed of the writ petition, relegating the petitioner to pursue the remedy of appeal. The petitioner was granted liberty to raise all issues raised in the writ petition before the Appellate Authority at the appropriate stage. The Court did not decide the merits of the original challenge to the Section 148 notice.

Key Issues

1. Whether the writ petition challenging the notice under Section 148 of the Income Tax Act, 1961, is maintainable when a re-assessment order has been passed and an appeal against it is pending before the appellate authority? Assessee's Contention: The judgment does not record any specific contention from the assessee regarding the maintainability of the writ petition. The assessee's counsel was unable to refute the respondent's submission. Revenue's Contention: The revenue contended that a re-assessment order has been passed during the pendency of the writ petition, and the petitioner has already preferred an appeal against this order, which is pending. Therefore, the petitioner should pursue the appellate remedy.