Case Details: Rupam Jewellery vs. Union of India - [2025] 179 taxmann.com 652 (Calcutta)
Judiciary and Counsel Details
- Ajay Kumar Gupta, J.
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Rabindranath Mahato & Aritra Shankar Ray, Advs. for the Petitioner.
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Aryak Dutta & Amit Sharma, Advs. for the Respondent.
Facts of the Case
The petitioner was a bona fide Income Taxpayer and was paying a handsome amount of tax regularly. Despite the final assessment, the Income Tax Department conducted a survey of the petitioner’s business premises. During the course of the survey and scrutiny of the assessment for the relevant year, the Department allegedly found a large-scale evasion of taxable income. Upon verifying the purchase bills/invoices, a major violation of Section 40A (3) for the earlier year was detected.
Further, the Assessing Officer (AO) further allegedly had reason to believe that the income of the assessee for the earlier year had escaped assessment in terms of Section 147. Thus, a notice was issued under Section 148 of the Act and Section 142(1) of the Act for the purpose of appearance.
The petitioner filed a writ petition to the Calcutta High Court, contending that the AO did not specify the reasonable grounds or reasons for the allegation of large-scale evasion of taxable income. Simply stating that evasion of tax without assigning any sufficient reason is a gross violation.
High Court Held
The High Court held that the writ petitioner had an alternative efficacious remedy under the provisions of the Income Tax Act, 1961, against the final assessment order. Therefore, no useful purpose would be served in keeping the writ petition pending for adjudication. It is well settled that a writ Court cannot enter into the disputed question of fact involved in the matter. Therefore, the writ petition was dismissed.
List of Cases Referred to
- Asstt. CIT v. SABH Infrastructure Ltd [2024] 159 taxmann.com 184/297 Taxman 374/461 ITR 339 (SC) (para 8)
- SABH Infrastructure Ltd. v. Asstt. CIT [2018] 99 taxmann.com 409/[2017] 398 ITR 198 (Delhi) (para 8).
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