ASG HOSPITAL PVT. LTD. vs. ACIT/DCIT, CIRCLE-1, JODHPUR

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CW/3996/2021HC RajasthanRJHC01016276202113 March 2023Author: PANKAJ MITHAL,DINESH MEHTA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the writ petitions. The Court noted that the counsel for the petitioners was not appearing, which was considered illegal and in breach of a Supreme Court order. The Court accepted the submission of the respondent's counsel that the petitions were filed against the rejection of preliminary objections and that the petitioners would have the opportunity to challenge the final assessment order. The Court found that re-assessment proceedings were initiated based on undisclosed income. Therefore, the Court was inclined to dismiss the petitions. No specific issue was left undecided, as the petitions were dismissed on procedural grounds.

What were the facts?

These are two writ petitions filed by Ossian Corporation and Asg Hospital Pvt. Ltd. The petitioners are aggrieved by the rejection of their preliminary objections. The respondents are various income tax authorities, including the Assessing Officer, National E-Assessment Centre, and the Income Tax Officer. The re-assessment proceedings were initiated based on information that the petitioners had not disclosed income in their earlier returns. The counsel for the petitioners was not present as they were abstaining from work due to a call from the Bar Association. The counsel for the respondents submitted that the petitioners would have an opportunity to challenge the final order in the future.

What were the issues?

1. Whether the rejection of the preliminary objection by the income tax authorities is a final order that can be challenged by way of a writ petition, or if it is an interlocutory order that can only be challenged after the final assessment order is passed? (Question of law) Assessee's Contention: Not recorded as the petitioners' counsel was absent. Revenue's Contention: The petitions have been filed aggrieved by the rejection of preliminary objections, and the petitioners will have all opportunities to challenge the final order which may ultimately be passed in the case in the future. (Relied on the principle that interlocutory orders are not appealable/challengeable until the final order is passed).

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2023/RJJD/006592] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 3479/2021 Ossian Corporation, Khasra No.319/4, Suncity Nagar, Opp. Thar Dry Port, Pal Road, Jodhpur. ----Petitioner Versus 1. Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, North Block, New Delhi. 2. The Assessing Officer, National E-Assessment Centre, Income Tax Department, Ministry Of Finance, Delhi. 3. The Income Tax Officer, Ward - 3(4), Income Tax Department, Aayakar Bhawan, Paota C Road, Jodhpur. ----Respondents Connected With D.B. Civil Writ Petition No. 3996/2021 Asg Hospital Pvt. Ltd., Having Its Registered Office At Plot No. 1, Shyam Nagar Pal Link Road Jodhpur Jodhpur Rj 342001 In Through Its Director Dr. Arun Singhvi Aged About 45 Years, S/o Sh. Dhanpat Mal Singhvi, R/o House No. 21-22 Ashapura Nagar, Jodhpur, Rajasthan 342001. ----Petitioner Versus 1. Acit/dcit, Circle-1, Jodhpur, Aaykar Bhawan, Paota C Road, Jodhpur. 2. Union Of India, Ministry Of Finance Through Additional/ Joint/ Deputy/assistant Commissioner Of Income Tax, National E-Assessment Centre, Delhi401, 2Nd Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi110003. 3. Deputy Commissioner Of Income Tax, Circle-1, Department Of Income Tax, Laxmi Nagar, Jodhpur. ----Respondents For Petitioner(s) : None present. For Respondent(s) : Mr. K.K. Bissa. HON'BLE THE ACTING CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE KULDEEP MATHUR [2023/RJJD/006592] (2 of 2) [CW-3479/2021]

Order 13/03/2023 Counsel for the petitioners is not appearing as apparently he is abstaining from work pursuant to the call given by the office bearers of the Bar Association. Such non-appearance is clearly illegal and in breach of the order passed by the Hon’ble Supreme & Anr. [2003 (2) SCC 45].

Learned counsel for the respondents submits that these petitions have been filed aggrieved by the rejection of preliminary objection, whereas the petitioners will have all the opportunity to challenge the final order which may ultimately be passed in the case in future.

We find that the re-assessment proceedings have been initiated on the basis of information received by the competent authority that the petitioners while submitting their return earlier had not disclosed income.

In view of above, we are inclined to dismiss the petitions.

The petitions are, accordingly, dismissed. (KULDEEP MATHUR ),J (MANINDRA MOHAN SHRIVASTAVA),ACJ 72-a.asopa/-

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