OMPRAKASH PREMCHAND AND COMPANY Vs. INSPECTING ASSISTANT COMMISSIONER

JUDGEMENT

(1.) SHRI G. M. Chaphekar, heard on admission. The petitioner is a partnership firm and is assessed to income-tax.

(2.) FOR the assessment year 1979-80, the petitioner had returned an income of Rs. 4,37,049. The ITO, acting under Section 144B of the I.T. Act, 1961 ("the Act"), passed a draft assessment order determining the income of the petitioner at Rs. 5,25,020. Since, according to the ITO, the variation in the income returned and proposed in the draft order exceeded Rs. 1,00,000, he referred the case to the IAC along with the assessee's objections. Notice of hearing was issued by the IAC to the petitioner, who raised an objection about his jurisdiction on the ground that the variation between the returned and proposed incomes did not exceed Rs. 1,00,000.

(3.) AFTER hearing the learned counsel, we find that this petition has to be dismissed. The validity of the order of rectification (annex. I) has already been challenged by the petitioner before the Commissioner (Appeals) in accordance with the provisions of the Act--(see para. 11 of the petition). It was not disputed that the order of assessment, which will finally be made by the ITO after compliance with the provisions of Section 144B, will be appealable. The learned counsel, however, contended that the challenge in the petition was to the jurisdiction of the IAC and, therefore, the remedy of appeal provided under the Act was not an equally efficacious remedy and this court could quash the proceedings before the IAC in exercise of its powers under Articles 226 and 227 of the Constitution of India.