All India Society For Electronics And Computer Technology vs. Assistant Commissioner Of Income Tax

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WPT/317/2017HC ChhattisgarhCGHC01005919201712 October 2017Author: HON'BLE SHRI JUSTICE P. SAM KOSHY2 pages
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What did the High Court hold?

The High Court disposed of the petition based on the undertaking given by the senior standing counsel for the Income Tax Department. The court held that until the petitioner's appeal pending before the ITAT is finally decided, the Income Tax Authorities shall not pass a final order in the assessment proceedings initiated against the petitioner as per the order dated 15/11/2016 passed by the Commissioner of Income Tax. The court also expressed an expectation that the ITAT would make all efforts to decide the petitioner's appeal as early as possible. The specific findings on the merits of the assessment or penalty proceedings were not addressed as the matter was resolved through the undertaking and the pending ITAT appeal.

What were the facts?

The petitioner, All India Society For Electronics And Computer Technology, challenged an order of de novo assessment dated 31/03/2016 before the Commissioner of Income Tax (Appeals). Subsequently, the Commissioner of Income Tax (Exemption) passed an order on 15/11/2016 under Section 263, partly revising the earlier assessment order. This revision directed the initiation of penalty proceedings under Section 271-C and suo motu assessment proceedings, requiring a fresh assessment order. The petitioner filed an appeal against this revisional order before the Income Tax Appellate Tribunal (ITAT), Raipur Bench, on 01/12/2016, which was pending. The petitioner sought an early disposal of the ITAT appeal and a stay on finalizing assessment proceedings based on the 15/11/2016 order.

What were the issues?

1. Whether the Income Tax Appellate Tribunal (ITAT) should be directed to expedite the disposal of the petitioner's pending appeal filed on 01/12/2016. 2. Whether the Income Tax Authorities should be restrained from finalizing assessment proceedings pursuant to the order dated 15/11/2016, pending the ITAT's decision. Assessee's Contentions: The petitioner sought an early disposal of its appeal before the ITAT and a stay on the finalization of assessment proceedings by the Income Tax Authorities until the appeal was decided. Revenue's Contentions: The senior standing counsel for the Income Tax Department undertook that the department would not pass a final order on the assessment proceedings until the petitioner's appeal was decided by the ITAT. The department would continue with the proceedings but refrain from finalizing them.

Which sections of the Income-tax Act were involved?

Section 263,Section 271-C,Section 246-A

AI-generated summary — verify with the full judgment below

1 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No.317 of 2017 All India Society For Electronics And Computer Technology Having Its Office At 2nd Floor, Ace Global, Telibandha, Raipur, Chhattisgarh, Through Its Secretary Shri Siddharth Chaturvedi S/o Shri Santosh Choubhey Aged About 36 Years R/o Plot No. 42, Savoy Sawan, National Highway 12, Hoshangabad Road, Misrod, Bhopal Madhya Pradesh. ---Petitioner Versus

1.

Assistant Commissioner Of Income Tax (Exemption) Circle - Raipur, Central Revenue Building, Civil Lines, Raipur - 492001. 2. Commissioner Of Income Tax (Exemption), Bhopal, Aayakar Bhawan, Arera Hills, Bhopal, Pin Code - 462001, Madhya Pradesh.

3.

Income Tax Appellate Tribunal, Raipur Bench Through Its Registrar, Chhattisgarh Chamber Of Commerce And Industries, 2nd Floor, Chaudhury Devilal Bhawan, Behind Bombay Market, Raipur, Pin Code - 429001, Chhattisgarh.

4.

Union Of India, Through Its Secretary Department Of Revenue, Ministry Of Finance, North Block, New Delhi - 110001. ---Respondents For Petitioner : Shri Siddharth Dubey, Advocate. For Respondent No.3 : Shri Amit Choudhary, Advocate. Hon'ble Shri Justice P. Sam Koshy Order on Board 13/10/2017

1.

The challenge in the instant case is the order of de novo assessment proceeding dated 31/03/2016 which was subjected to challenge before the Commissioner of Income Tax (Appeals) under Section 246-A and is pending consideration. Meanwhile the revisional authority i.e. the Commissioner of Income Tax (Exemption) in exercise of its power under Section 263 passed an order on 15/11/2016 partly revising the earlier order of the assessing officer dated 31/03/2016 to the extent that, it also directed for initiating penalty proceedings against the petitioner under Section 271-C of the Act as also for initiating Suo Moto assessment proceeding and passing a fresh

2 assessment order. This order dated 15/11/2016 i.e. Annexure P/3 was subjected to challenge before the ITAT, Raipur which was filed on 01/12/2016 and the appeal before the ITAT is still pending consideration.

2.

The limited relief which the petitioner have sought for is that, firstly the ITAT may be directed for an early disposal of the appeal which is pending consideration since December-2016 and meanwhile an order of restrain be passed against the Income Tax Authorities from finalizing the assessment proceedings as per the order dated 15/11/2016. 3. The senior standing counsel appearing for the Income Tax Department makes the undertaking that, till the appeal of the petitioner is pending consideration before the ITAT, they shall not pass the final order on the assessment proceeding which the department has initiated against the petitioner. He further submits that, all that the department may do is to continue with the proceeding without passing the final order until the appeal is finally decided.

4.

That, on the fair undertaking being given by senior standing counsel of the Income Tax Department, this petition stands disposed off holding that till

the appeal of the petitioner pending before the ITAT is not finally decided, the authorities shall not pass the final order in the assessment proceedings initiating against the petitioner as per the order passed by the Commissioner of Income Tax dated 15/11/2016. 5. It is expected that, the ITAT may also make all efforts in deciding the appeal of the petitioner as early as possible. (P. Sam Koshy) Sumit Judge

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