Bee Cee Fireworks Industries Vs Principal Chief Commissioner of Income Tax Member Secretary (Madras High Court)
Madras High Court held that Local Committee on High Pitched Scrutiny Assessment are not required to grant an opportunity of being heard as there is no provisions laid down in the SOP. Accordingly, writ dismissed.
Facts- The petitioner would submit that in respect of the Returns submitted for the Assessment years 2016-2017 and 2019-2020, a show cause notice u/s. 148(A)(b) of the Income Tax Act was issued stating that the case of the petitioner had been reopened based upon the information available in the Insight Portal indicating that there has been suppression of cash sales. Thereafter, an order u/s. 148A(d) of the Act was passed and a notice u/s. 148 of the Act was issued. The second respondent on completing the assessment u/s. 147 read with 154(b) of the Act passed an order of assessment claiming a fanciful figure. Aggrieved against the same, the petitioner had also preferred an appeal before the fourth respondent herein and the same is pending.
The petitioner, taking benefit of the circular issued by the CBDT had submitted a grievance petition to the Local Committee for High Pitched Scrutiny Assessment. The petitioner had raised various issues including the violations of principles of natural justice, non-application of mind, reliance placed upon the particulars which had been obtained behind the back of the petitioner, apart from the merits claiming the assessment to be a High Pitch Assessment. However, the first respondent by the impugned order had held that the assessment was not High pitch.
