Active participation in reassessment proceedings without objecting to the impugned notice may lead to dismissal of a challenge to the final assessment order.

JUDGMENT

Md. Nizamuddin, J. - The Court:

1. Heard learned Counsel appearing for the parties.

2. In this Writ Petition petitioner has challenged the impugned notice dated 26th March, 2021 under Section 148 and final assessment order dated 31st March, 2022, under Section 147/143 (3) of the Income Tax Act, 1961, relating to assessment year 2017-18 raising a demand of Rs. 8,57,19,806/-.

3. Peculiar facts involved in this case as appears from record annexed to the Writ Petitioner by the petitioner itself is that on 26th October, 2021 petitioner received the impugned notice under Section 148 of the Act by which it was asked to file a return in the prescribed form for the relevant assessment year as appears at Page 38 of the Writ Petition and in response to the said notice petitioner filed a return on 9th October, 2021. Thereafter, as appears from Page 45 of the Writ Petition that on 22nd October, 2021 petitioner's authorised representative one Murarka & Associates asked the Assessing Officer for furnishing of the recorded reason for issuance of the aforesaid notice. It appears at Page 48 of the Writ Petition that the respondent Assessing Officer concerned furnished recorded reason to the petitioner on 26th October, 2021 and after finding no response or any objection from the petitioner against the impugned notice under Section 148 of the Act, the Assessing Officer concerned, having no option, proceeded with the impugned reassessment proceeding by issuing notice under Section 142 (1) of the Act, on 6th December, 2021, asking the petitioner to furnish the relevant accounts and documents as referred in the said notice, within 13th December, 2021, as appears at Page 51 of the Writ Petition. In compliance of the aforesaid notice dated 6th December, 2021, under Section 142 (1) of the Act, the said authorised representative submitted relevant documents on 13th December, 2021, with specific request to the Assessing Officer that 'Considering the same, we request you to complete the proceeding initiated u/s 147 of the Income Tax Act, 1961 without drawing any adverse inference' as appears from Annexure- P-7 at Page 53 of the Writ Petition. It appears from the aforesaid compliance letter dated 13th December, 2021, written by the said authorised representative that nowhere it has challenged the legality and validity of the impugned notice under Section 148 or initiation of the impugned proceeding under Section 147 of the Income Tax Act, 1961, and petitioner itself had chosen not to object to the aforesaid impugned notice and proceeding on or after receiving the aforesaid notice under Section 148 of the Act and the recorded reason rather petitioner himself had requested the Assessing Officer to complete the impugned reassessment proceedings under Section 147 of the Act.

4. It appears from record that after compliance of the aforesaid impugned notice under Section 142 (1) of the Income Tax Act, 1961 dated 6th December, 2021, by the petitioner, another notice under Section 142 (1) of the Act was issued on 14th December, 2021, asking the petitioner to furnish relevant accounts and documents referred therein on or before 20th December, 2021, as appears from Page 54 of the Writ Petition. Petitioner complied with the aforesaid second notice also under Section 142 (1) of the Act dated 14th December, 2021 through the same authorised representative by its letter dated 20th December, 2021 as appears at Page 60 of the Writ Petition and on perusal of the same I find that even on or before 22nd December, 2021 nowhere petitioner had objected to the issuance of the aforesaid impugned notice under Section 148 of the Act or initiation of the impugned proceeding under Section 147 of the Act or prayed for dropping of the said proceeding.

5. It appears from Page 64 of the Writ Petition that after compliance of the second notice under Section 142 (1) of the Act, assessee petitioner changed his authorised representative and one Anujit Mookherji, on 14th January, 2022, wrot