Brief of the case:
The Hon’ble Bombay HC in the above cited case held that when assessee participated in reassessment proceedings by furnishing the required documents and challenges the reopening subsequently before the high court by filing a writ petition then it would be not be appropriate for the high court to exercise its exclusive jurisdiction because the assessee has already chosen AO to exercise jurisdiction in the matter and to challenge his order before the appropriate appellate forum provided under the Act.
Facts of the case:
- AO issued a notice dated 30th March, 2015 under Section 148 of the Act to reopen the assessment for AY 2008-09 u/s 148.Assessee was asked to file a Return of Income in the prescribed form for the subject assessment year within 30 days of the service of the notice. The petitioner admittedly filed its
- Return of Income only on 29th December, 2015 for the subject assessment year and sought reasons recorded by the Assessing Officer in support of the notice issued u/s 148.
- On 4th January, 2016, the Assessing Officer furnished to the petitioner reasons recorded while issuing the impugned notice dated 30th March, 2015.On 14th Jan,2016 , the petitioners submitted the details called for by the Assessing Officer but pointed out that the information is being submitted subject to the objections to the impugned notice which would be filed by it.
- On 22nd January, 2016 the petitioners filed its objections to the reasons recorded in support of the impugned notice. On 25th January, 2016, the Assessing Officer disposed of the objections to the reasons recorded in support of the impugned notice. The reopening thereafter was challenged by filling writ petition before Bombay HC.
- At the instance of the petitioners ad interim relief was granted by high court staying the impugned notice dated 30th March, 2015.
Contention of the Assessee:
It was submitted that furnishing the information to AO was without prejudice to its objections to the reasons which were to be filed in due course. Thus, there was no participation in proceedings before the Assessing Officer and it is open for the assessee to challenge the reopening before High court by filling writ petition instead of contesting the same before the CIT(Appeals).
Contention of the Revenue:
Revenue objected that as the petitioner has participated in proceedings before the Assessing Officer in respect of the impugned notice, this Court should not exercise its extraordinary writ jurisdiction in favour of the petitioners. Because it is not open for the assessee to challenge the reopening parallel before the appellate authorities as well as before high court.
Held by Hon’ble High Court:
