RAJASTHAN TECHNICAL UNIVERSITY vs. DEPUTY COMMISSIONER OF INCOME TAX

Facts

The petitioner, Rajasthan Technical University, established under the Rajasthan Technical University Act, 2006, is challenging a notice issued under Section 148 of the Income Tax Act, 1961, dated 08.07.2011, and a subsequent reassessment order dated 27.03.2019. The notice was issued following a survey conducted on 22.06.2011, which revealed discrepancies. The petitioner had filed its income tax return for Assessment Year 2008-09 claiming exemption under Section 10(23C). The petitioner filed objections to the Section 148 notice on 12.07.2011. An earlier writ petition challenging the rejection of these objections was permitted to be withdrawn by the revenue with liberty to reconsider. Subsequently, the objections were rejected by an order dated 01.03.2019, leading to the reassessment order.

Held

The Tribunal held that the order dated 01.03.2019 clearly decided the objections filed by the petitioner against the initiation of proceedings under Section 148 of the IT Act. The petitioner chose not to challenge this order rejecting objections and instead participated in the proceedings that culminated in the reassessment order. Therefore, any grievance against the order dated 01.03.2019 can be addressed by the Appellate Authority in an appeal against the reassessment order. The Tribunal noted that adjudicating whether the reassessment order is barred by limitation would require reconsideration of factual aspects, including the effect of stay orders and the pendency of earlier writ proceedings. Finding no case for interference in writ jurisdiction, the petition was dismissed, relegating the petitioner to the remedy of an appeal. No specific issue was left undecided, as the dismissal was based on the availability of an alternative remedy.

Key Issues

1. Whether the communication dated 01.03.2019 constitutes a valid order rejecting the petitioner's objections to the Section 148 notice, and whether an opportunity of hearing was granted? (Question of law and fact, concerning Section 148 proceedings). 2. Whether the reassessment order dated 27.03.2019 is time-barred, considering the initiation of Section 148 proceedings and the period of stay during earlier writ proceedings? Assessee's contentions: The communication dated 01.03.2019 is not a proper order rejecting objections, and no opportunity of hearing was provided. Although Section 148 proceedings were initiated in time, the reassessment order is time-barred. Revenue's contentions: The petitioner has an alternative remedy of appeal. The order dated 01.03.2019 duly considered the petitioner's objections. The reassessment order is within the limitation period due to the stay granted during the pendency of the earlier writ petition and special appeal. The order dated 01.03.2019 was not challenged at the time of passing the reassessment order and is not the subject of the current petition.