AO entitled to ask relevant Q.s in re-assessment if within jurisdict'n held HC.
AO entitled to ask relevant Q.s in re-assessment if within jurisdict'n held HC.
AO in re-assessm't issued notice to assessee u/s 142(1) (of Income Tax Act, 1961) seeking details of disputed issues. Assessee alleged, u/s 147 (of Income Tax Act, 1961), AO could not enquire into issues which were subject matter of pending appeal from original order of assessm't u/s 143(3) (of Income Tax Act, 1961) during reassessment proceedings. HC held, AO entitled to ask relevant Q.s & assessee to point out that Q.s raised do not arise for considerat'n in facts before him or they are without jurisdict'n.-000102
Facts in Brief:
1. For relevant assessment years, Assessing Officer reopened the assessment in case of assessee. In course of reassessment proceedings, the Assessing Officer issued a notice under section 142(1) (of Income Tax Act, 1961) seeking details on certain issues in dispute.
2. Assessee contented on writ that Under Sec. 147 (of Income Tax Act, 1961), the Assessing Officer could not enquire into the issues which were subject matter of pending appeal from the original order of assessment under section 143(3) (of Income Tax Act, 1961) for the relevant assessment years during the reassessment proceedings.
HC held as under:
3. During the course of adjudication, the adjudicator is entitled to raise queries and it is open to the assessee as in this case to respond to the queries and point out it is not germane to adjudication and /or that it is not his jurisdiction to enquire into the aspects as suggested by the queries. The Assessing officer/Adjudicator is duty bound to consider the response and apply the law as it stands.
4. There is no bar to the assessee pointing out all objections in writ petition to the Assessing officer and the Assessing Officer would deal with them in the assessment order. However, it would not be proper that during the assessment/reassessment proceedings to stifle/restrict the scope of enquiry. The petitioner seeks that this court exercise its writ jurisdiction merely because according to the petitioner the enquiries raised by the Assessing Officer are without jurisdiction and that the Assessing Officer would not accept their submissions
5. During the course of assessment proceedings the Assessing Officer is certainly entitled to ask questions which according to him are relevant and it is for the assessee to point out that the questions raised do not arise for consideration in the facts before him or they are without jurisdiction. The entire process of adjudication is to serve the above purpose.
6. In view of the above, there is no reason to interfere at this stage with regard to impugned notice.
7. Accordingly, the writ petitions is dismissed.
Case Reference-HDFC Bank Ltd. v. Assistant Commissioner of Income-tax 2(3)
HIGH COURT OF BOMBAY
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