VIPUL KOTHARI vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX

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WPT/23/2020HC ChhattisgarhCGHC01044374201916 January 2020Author: HON'BLE SHRI JUSTICE P. SAM KOSHY2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that in view of the fact that a final assessment order had been passed on December 18, 2019, the matter had become of only academic interest. The Court observed that the writ petition challenging the notice under Section 148 had become infructuous. The Court disposed of the writ petition, leaving open the questions raised by the petitioner to be agitated in an appropriate proceeding, including an appeal against the assessment order. The operative direction was to dispose of the writ petition with liberty to the petitioner to challenge the assessment order. No specific issue was left undecided, but the merits of the original challenge were not adjudicated.

What were the facts?

The petitioner, Vipul Kothari, filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act. The writ petition was filed on December 16, 2019. During the pendency of the writ petition, the Income Tax Department passed a final assessment order on December 18, 2019. The Department's counsel submitted that this subsequent order rendered the issue in the writ petition infructuous, as the assessment order is appealable under Section 246A of the Income Tax Act. The Department produced the assessment order dated December 18, 2019, which was taken on record by the Court.

What were the issues?

1. Whether the writ petition challenging the notice under Section 148 of the Income Tax Act has become infructuous in light of the subsequent passing of the final assessment order under Section 143(3) of the Income Tax Act. (Question of law) The petitioner's contention was not recorded in the judgment. The revenue's contention was that the passing of the final assessment order on December 18, 2019, made the challenge to the Section 148 notice infructuous. The revenue argued that the assessment order is an appealable order under Section 246A of the Income Tax Act, and therefore, the writ petition should be disposed of. The revenue relied on the fact that the assessment order itself was passed.

Which sections of the Income-tax Act were involved?

Section 148,Section 143(3),Section 246A

AI-generated summary — verify with the full judgment below

-1- NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No. 23 of 2020

1.

Vipul Kothari, S/o Kishor Kumar, R/o 21 Mahavir Colony, Durg, District : Durg, Chhattisgarh ---- Petitioner Versus

1.

The Principal Commissioner of Income Tax, Raipur – 2, Central Revenue Building, Civil Lines, Raipur, District : Raipur, Chhattisgarh

2.

The Income Tax Officer, Ward – 1(4), Bhilai, District: Durg, (C.G) ---Respondents For Petitioner : Mr. Ashok Patil, Advocate For Respondents : Mr. Amit Chaudhari along with Mr. Ajay Kumrani, Advocate :

adfasf Hon'ble Shri Justice P. Sam Koshy Order on Board 17.01.2020

1.

The challenge in the present writ petition is to the notice issued under Section 148 of the Income Tax Act.

2.

The writ petition was filed on 16.12.2019. Today, when the matter is taken up, the learned counsel for the Department submits that the Department has in the meanwhile passed the final assessment order itself and as such the issue involved in the case has become infructuous and the subsequent order passed on 18.12.2019 is itself an appealable order under Section 246A of the Income Tax Act.

3.

The counsel for the Department produced the order dated 18.12.2019 to the Court, the said order is taken on record.

-2-

4.

In view of the fact that an assessment order has since been passed on 18.12.2019, in the opinion of this Court the matter as such has become of only academic interest. Accordingly, the present writ petition stands disposed of leaving open the questions, which were raised by the petitioner in this petition to be agitated in an appropriate proceeding including appeal, which the petitioner may prefer challenging the assessment order.

5.

With the aforesaid observations and liberty, the present writ petition stands disposed of. (P. Sam Koshy) Judge Rahul

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