Dayaram Brijbhukhandas Vs PCIT (Gujarat High Court)
Gujarat High Court held that no writ petition is maintainable against the show cause notice under section 263(1) of the Income Tax Act when notice is self-speaking and self-explanatory. Accordingly, writ dismissed as alternate remedy to prefer an appeal before Tribunal available.
Facts- The petitioner, a partnership firm, is engaged in the business of manufacturing and trading of gold and silver ornaments and gold bullion. Case of the petitioner was taken up for scrutiny under Compulsory Manual Selection on the issue of cash deposit during demonetization period. The assessment order u/s. 143(3) of the Act was passed on 31.12.2019 rejecting the books of accounts of the petitioner by making addition of Rs.13,21,500/- and total income of the petitioner was assessed at Rs.33,63,520/-.
The respondent Principal Commissioner of Income Tax, Valsad (PCIT) thereafter issued the impugned notice dated 19.03.2022 under section 263 of the Act. Being aggrieved, the petitioner has preferred this petition with a prayer to quash and set aside the impugned notice dated 19.03.2022.
Conclusion- Hon’ble Apex Court, in the case of Piyara Lal v. Principal Commissioner of Income Tax and another, has categorically held that no writ petition is maintainable against the show cause notice under section 263(1) of the Act when notice is self-speaking and self-explanatory and it is for the petitioner to show cause as to why order suggested therein be not passed by raising the objection.
