The Madhya Pradesh High Court in the case M/S Space Enclave Private Limited Versus Income Tax Department observed and has stayed the reassessment proceedings and admitted them for the final hearing.
The division bench comprising of Justice S.A. Dharmadhikari and Justice Prakash Chandra Gupta in the case observed and has relied upon the decision of the Supreme Court in the case Red Chilli International Sales Vs. Income Tax Officer & Anr, wherein the court held that the writ petitions have been entertained to examine whether the conditions for the issuance of a notice under Section 148 of the Income Tax Act, 1961 have been satisfied. Therefore, the provisions of reopening under the Income Tax Act, 1961, have undergone an amendment by the Finance Act, 2021, and consequently, the said matter would also require a deeper and the more in-depth consideration wherein keeping in mind the earlier case law.
The said order has been assailed by the petitioner or assessee passed by the court under Section 148A(d) of the Income Tax Act as well as the notice issued under Section 148 of the Act wherein the court initiated the reassessment proceedings for the 2013–2014 assessment year.
Therefore, a preliminary objection has been raised by the department with regards to the maintainability of the writ petition in view of the alternative remedy available under Section 246 of filing an appeal.
Further, the court raised the said issue in respect of under what circumstances a challenge can be entertained to an order passed under Section 148A(d), as the same stood amended.
It has also been held by the court that the alternative remedy will not operate as an absolute bar for entertaining of the writ plea as the jurisdictional issue which goes to the root of the matter.
The case is made by the petitioners wherein entertaining the appeal.
Accordingly, the court stayed the further reassessment proceedings.
