RAJ TECHNICAL UNIVERSITY vs. INCOME TAX OFFICER AND ORS

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CW/18239/2011HC RajasthanRJHC02022426201122 July 2024Author: MANINDRA MOHAN SHRIVASTAVA,ASHUTOSH KUMAR1 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing that the notice issued under Section 143(2) of the Income Tax Act, 1961, dated 30.08.2010, shall not be given effect to. The court reasoned that the petition had been pending since 2011 and an interim order had stayed the notice since 23.12.2011. The court also stated that it would be open for the respondents (revenue) to take such proceedings as may be available under the law if they seek to reopen the matter. The principle established is that prolonged stays on assessment notices, coupled with the court's inclination to dispose of old matters, can lead to the quashing of such notices, while preserving the revenue's right to initiate fresh proceedings if permissible.

What were the facts?

The petitioner, Rajasthan Technical University, through its Finance Officer, filed a writ petition before the High Court of Judicature for Rajasthan, Bench at Jaipur. The respondents were the Income Tax Officer, Commissioner of Income Tax, Central Board of Direct Taxes, and the State of Rajasthan. The petition has been pending since 2011. A notice under Section 143(2) of the Income Tax Act, 1961, was issued on 30.08.2010, which was stayed by an interim order passed on 23.12.2011. The court noted that a second set of the petition had not been filed.

What were the issues?

1. Whether the notice issued under Section 143(2) of the Income Tax Act, 1961, dated 30.08.2010, should be given effect to, considering the long pendency of the writ petition and the interim stay order. (Question of law and fact) Assessee's Contention: The assessee, Rajasthan Technical University, implicitly sought to quash or prevent the enforcement of the notice under Section 143(2) by filing the writ petition and obtaining an interim stay. The long pendency and the interim order suggest a desire to avoid further proceedings based on that notice. Revenue's Contention: No arguments were recorded for the revenue in the provided judgment.

Which sections of the Income-tax Act were involved?

Section 143(2)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 18239/2011 Rajasthan Technical University, Rawat Bhata Road, Kota, through its finance Officer, Sh. S.N. Sharma S/o Sh. Ratan Lal Sharma, aged about 52 Years, 691-A R K Puram, Kota (Rajasthan) ----Petitioner Versus 1. Income Tax Officer, Ward-1(2), C.R. Building, Rawat Bhata Road, Kota. 2. Commissioner of Income Tax, C.R. Building Rawatbhata Road, Kota. 3. Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, North Block, Delhi- 110001. 4. State of Rajasthan, through Principal Secretary, Technical Education, Secretariat, Jaipur ----Respondents For Petitioner(s) : Mr. Rajat Sharma, Advocate for Mr. Sanjay Jhanwar, Senior Advocate For Respondent(s) : None present. HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE ASHUTOSH KUMAR

Order 22/07/2024

1.

Heard.

2.

Second set of petition has not been filed so far.

3.

The petition is pending since 2011. 4. Notice under Section 143(2) of the Income Tax Act, 1961 issued on 30.08.2010 has remained stayed under interim order passed on 23.12.2011. 5. In these circumstances, we are inclined to dispose off this petition directing that the notice issued earlier on 30.08.2010 shall not be given effect to. However, it will be open for the respondents to take such proceedings as may be available under the law in case they seek to reopen. (ASHUTOSH KUMAR),J (MANINDRA MOHAN SHRIVASTAVA),CJ SANJAY KUMAWAT /TANISHA/35

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