Case Law Details
M/s. Hanon Automotive Systems India Private Limited Vs DCIT (Madras High Court)
Having heard the learned counsel appearing for the appellant, we are satisfied that there is no merit in the present writ appeals and the same deserve to be dismissed for the following reasons. Firstly, we may observe that the learned Single Judge was absolutely right in holding that the Assessee, having not raised an objection before the Assessing Authority to the re-opening of the assessment under Section 147/148 of the Act, should be deemed to have acquiesced to the same. Nothing prevented the Assessee from raising the objection, which could have been dealt with by the Assessing Authority in accordance with law.
Having not raised any such objection before Assessing Authority that the expenditure claimed as Revenue Expenditure was already considered and allowed as Revenue Expenditure and therefore, for treating the same now as Capital Expenditure is a change of opinion, is not a tenable contention and therefore, it cannot be a ground to be raised in writ jurisdiction. Further, when a specific and adequate alternative remedy available to the Assessee for taking such a plea to find as to whether the expenditure claimed by the Assessee is to be treated as Revenue Expenditure or Capital Expenditure, if the High Court was to entertain such controversy on merits, the entire litigation in this respect can be just brought on the Board of the High Court instead of availing the regular Appellate Forum provided under the Act.
The Income Tax Act is a self-contained Act and the High Court, under Section 260A of the Act, in its Appellate Jurisdiction, is not the proper forum for deciding such a mixed question of facts and law. The decision of the Hon’ble Supreme Court in Calcutta Discount Co. Ltd. v. Income-tax Officer ((1961) 41 ITR 191 (SC)) and the decision of a co-ordinate Bench of this court in Commissioner of Income-tax, Chennai v. Schwing Stetter India (P) Ltd. ((2015) 61 Taxmann.com 19 (Madras)), cited by the learned counsel for the Appellant cannot be applied to the present case as in each and every case, the circumstances warranting interference by High Court, in its writ jurisdiction, would vary.
We are satisfied that in the present case, there was no change of opinion on the part of the Assessing Authority and therefore, the re-opening of the Assessment Order was initiated on valid and reasonable grounds. Even the difference between ‘change of opinion’ and ‘reasons to believe’-the condition precedent for invoking Sections 147 and 148 of the Act is very thin. Even if there is a correct disclosure of the expenditure, it may be, in the opinion of the Assessee, a Revenue Expenditure but, in the opinion of the Assessing Authority, it can be a Capital Expenditure. But, that deserves to be decided on the basis of facts by the higher Appellate Forums and that cannot become the ground to straightaway invoke the writ jurisdiction under Article 226 of the Constitution of India. Therefore, we are satisfied that the order of the learned Single Judge does not suffer from infirmity so as to call for any interference and the present appeals are devoid of merit and are liable to be dismissed. Accordingly, the Appeals of the Assessee are dismissed. No costs. The connected miscellaneous petition is also dismissed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
