ANITA KOTHARI vs. The Principal Commissioner of Income Tax

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WPT/155/2019HC ChhattisgarhCGHC01043599201906 January 2020Author: HON'BLE SHRI JUSTICE P. SAM KOSHY2 pages
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What did the High Court hold?

The High Court held that the writ petition challenging the notice under Section 148 of the Income Tax Act, 1961, had become infructuous. This was because a final assessment order had been passed on December 18, 2019, during the pendency of the writ petition. The Court noted that this subsequent order is appealable under Section 246A of the Income Tax Act, 1961. Therefore, the Court opined that the matter had become of only academic interest. The writ petition was disposed of, leaving open the questions raised by the petitioner to be agitated in an appropriate proceeding, including an appeal against the assessment order. No specific finding was given on the merits of the original challenge to the Section 148 notice.

What were the facts?

The petitioner, Anita Kothari, filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961. The petition was filed on December 7, 2019. During the pendency of the writ petition, the Income Tax Department passed a final assessment order on December 18, 2019. The Department's counsel informed the High Court that this subsequent order rendered the issue in the writ petition infructuous, as the assessment order is appealable under Section 246A of the Income Tax Act. The Department produced the assessment order dated December 18, 2019, which was taken on record by the Court.

What were the issues?

1. Whether the writ petition challenging a notice under Section 148 of the Income Tax Act, 1961, becomes infructuous when a final assessment order is passed during the pendency of the petition? (Question of law) The petitioner's side argued that the writ petition was filed to challenge the notice under Section 148. The revenue's side argued that the subsequent passing of the final assessment order on December 18, 2019, has rendered the issue in the writ petition infructuous. They further contended that the assessment order is an appealable order under Section 246A of the Income Tax Act, 1961, providing an alternative remedy.

Which sections of the Income-tax Act were involved?

Section 148,Section 246A

AI-generated summary — verify with the full judgment below

1 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No. 155

of 2019 Anita Kothari W/o Late Rajesh Kothari Aged About 45 Years R/o 21, Mahavir Colony, Durg Chhattisgarh. ---- Petitioner Versus

1.

The Principal Commissioner Of Income Tax Raipur - 2, Central Revenue Building, Civil Lines, Raipur Chhattisgarh.

2.

The Income Tax Officer Ward - 1(4), Bhilai, District Durg Chhattisgarh. ---- Respondents For Petitioner : Mr. Mool Chand Jain, Advocate along with Mr. Ashok Patil, Advocate For Respondents : Ms. Naushina Afrin Ali, Advocate along with Mr. Ajay Kumrani, Advocate Hon'ble Shri Justice P. Sam Koshy Order on Board 07/01/2020

1.

The challenge in the present writ petition was the notice issued under Section 148 of the Income Tax Act.

2.

The writ petition was filed on 07.12.2019. Today, when the matter is taken up, the learned counsel for the Department submits that the Department has in the meanwhile passed the final assessment order itself and as such the issue involved in the case has become infructuous and the subsequent order passed on 18.12.2019 is itself an appealable order under Section 246A of the Income Tax Act.

3.

The counsel for the Department produced the order dated 18.12.2019 to the Court, the said order is taken on record.

4.

In view of the fact that an assessment order has since been passed on 18.12.2019, in the opinion of this Court the matter as such has become of only academic interest. Accordingly, the present writ

2 petition stands disposed of leaving open the questions, which were raised by the petitioner in this petition to be agitated in an appropriate proceeding including appeal, which the petitioner may prefer challenging the assessment order.

5.

With the aforesaid observations and liberty, the present writ petition stands disposed of. (P. Sam Koshy) Judge Ved

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