SWAL LIMITED vs. UNION OF INDIA AND ORS.

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WPA/10858/2022HC CalcuttaWBCHCA023284202222 June 2022Bench: HON'BLE JUSTICE MD. NIZAMUDDIN2 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the impugned order passed under Section 148A(d) of the Income Tax Act, 1961, was passed after compliance with all the formalities required by the relevant provisions of the Act. The court found no procedural irregularity or violation of the principles of natural justice. It emphasized that a writ court, in its constitutional writ jurisdiction, cannot act as an appellate authority over an order passed under Section 148A(d) when there is no procedural flaw, violation of natural justice, or if the officer has not acted contrary to any statutory provision. The reasoning and findings of the Assessing Officer in the impugned order should not be substituted by the writ court. Therefore, the writ petition was dismissed.

What were the facts?

The petitioner, SWAL Limited, filed a writ petition challenging an order dated April 12, 2022, passed under Section 148A(d) of the Income Tax Act, 1961. This order followed a notice issued under Section 148A(b) of the Act on March 30, 2022. The petitioner's primary contention was a violation of the principles of natural justice. The Assessing Officer had issued the Section 148A(b) notice, to which the petitioner filed objections. Subsequently, the Assessing Officer passed the impugned order under Section 148A(d) after considering these objections and providing reasons and elaborate discussion.

What were the issues?

1. Whether the order passed under Section 148A(d) of the Income Tax Act, 1961, is vitiated by a violation of the principles of natural justice, as argued by the petitioner? The petitioner contended that the principles of natural justice were violated. The revenue, through its counsel, argued that all formalities required under the relevant provisions of the Income Tax Act, 1961, were complied with, and there was no procedural irregularity or violation of the principles of natural justice. The court noted that the Assessing Officer considered the petitioner's objections and provided reasons and elaborate discussion in the impugned order.

Which sections of the Income-tax Act were involved?

Section 148A(d),Section 148A(b),Section 148A

AI-generated summary — verify with the full judgment below

22.6.2022 ks WPA 10858 of 2022 sl. 20 SWAL Limited Vs Union of India & Ors. Mr. Ranjeet Kumar Murarka, Mr. Vivek Murarka, Mr. Dibanath Dey … For the Petitioner. Ms. Smita Das De … For the UOI. Heard learned Advocates appearing for the parties. By this writ petition, petitioner has challenged the order dated 12th April, 2022 passed under Section 148A(d) of the Income Tax Act, 1961 pursuant to the notice under Section 148A(b) of the Act dated 30th March, 2022, on the ground of alleged violation of principles of natural justice. Considering the submission of the parties and facts and circumstances as appears from record, I am of the view that the impugned order under Section 148A(d) of the Act has been passed after compliance of all the formalities required under the relevant provisions of the Income Tax Act, 1961, and there is no procedural irregularity or violation of principles of natural justice. It appears from record that, first, notice was issued under Section 148A(b) of the Act as appears from page 30 of the writ petition. In response to the same, the petitioner has filed its objection as appears from page 135 of the writ petition and thereafter the Assessing

2 Officer concerned has passed order under Section 148A of the Act after considering the objection of the petitioner by giving reason and making elaborate discussion. This Court in exercise of its Constitutional writ jurisdiction cannot act as an Appellate Authority over the impugned order passed under Section 148A(d) of the Act when there is no procedural irregularity or violation of principles of natural justice or the Officer has not acted contrary to any provision of the Statute and reasoning and findings given by the Assessing Officer in his order under Section 148A(d) of the Act should not be substituted by a writ Court. In view of the discussion made above, this writ petition being WPA 10858 of 2022 is dismissed. ( Md. Nizamuddin, J. )

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