Case Law Details
Modern Living Solutions Private Ltd Vs ITO (Bombay High Court)
Non-existence of reason for reopening – HC Upholds Writ Petition’s Maintainability Against Initiation of Section 148 Proceedings
In writ petition the petitioner has raised a challenge to the initiation of proceedings and exercise of power under Section 148 of the Act of 1961 by urging that the statutory requirements prescribed by Section 148 have not been satisfied. In other words, it is submitted that since there is no existence of any reason to believe, reopening of the proceedings by the respondent No.1 is without jurisdiction. Since the jurisdiction of the respondent No.1 of initiating the proceedings itself is under challenge, the writ petition would be maintainable. In the light of the challenge as raised it cannot be said that the writ petition is not maintainable. The further question as regards the entitlement to any relief would be a matter to be considered on merits while entertaining such jurisdictional challenge is an aspect to be considered on merits. It is therefore held that the writ petition as filed is maintainable and the same is liable to be entertained on merits.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. The challenge raised in this writ petition filed under Article 226 of the Constitution of India is to the notices dated 31/03/2021 issued under Section 148 of the Income Tax Act, 1961 (for short, the Act of 1961) by which the respondent No.1 has sought to re-open the assessment of the petitioner for the year 2017-2018. A challenge is also raised to the communication dated 19/12/2021 issued by the respondent No.2 turning down the objection raised by the petitioner to the re-opening of the said process.
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