SANJAY MANILAL KOTHARI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), AHMEDABAD

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SCA/20153/2021HC GujaratGJHC24071462202108 February 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the writ application was filed when the assessee's objections to the reasons for reopening under Section 153C had not been considered by the Assessing Officer. A previous order had directed the AO to consider these objections. On the current date of hearing, both parties jointly stated that the AO had since considered the objections and passed an order disposing of them. In light of this development, the assessee's counsel sought to withdraw the writ application with liberty to file a fresh one after examining the AO's order. The Court disposed of the writ application as not pressed at this stage, granting the liberty sought. The interim order preventing the final assessment order was extended for two more weeks.

What were the facts?

The assessee, Sanjay Manilal Kothari, filed a writ application before the High Court of Gujarat challenging the reopening of assessment under Section 153C of the Income Tax Act, 1961. The primary grievance was that the Assessing Officer (AO) had not considered the objections lodged by the assessee against the reasons for reopening. A Coordinate Bench had previously directed the AO to consider these objections. On the date of the hearing, both the assessee's counsel and the Revenue's counsel jointly informed the Court that the AO had indeed considered the objections and passed an order disposing of them. Consequently, the assessee sought to withdraw the writ application with liberty to file a fresh one after reviewing the AO's order.

What were the issues?

1. Whether the High Court should entertain a writ application when the Assessing Officer has not yet considered the assessee's objections to the reasons for reopening of assessment under Section 153C of the Income Tax Act, 1961? (Question of procedure and jurisdiction). Assessee's contention: The assessee argued that the AO's failure to consider objections warranted High Court intervention to direct the AO to do so. The initial relief sought was a direction to consider objections. Revenue's contention: The Revenue did not explicitly record any contention against the initial prayer for direction. However, on the subsequent hearing, the Revenue's counsel confirmed that the AO had considered the objections.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

C/SCA/20153/2021 ORDER DATED: 08/02/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 20153 of 2021 ========================================================== SANJAY MANILAL KOTHARI Versus ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), AHMEDABAD ========================================================== Appearance: MR DHINAL A SHAH(12077) for the Petitioner(s) No. 1 for the Respondent(s) No. 1 MR MR BHATT SENIOR COUNSEL WITH MR KARAN SANGHANI, ADVOCATE FOR M R BHATT & CO.(5953) for the Respondent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 08/02/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1 This writ application came to be filed at a point of time when the objections lodged by the writ applicant – assessee to the reasons assigned for the reopening of the assessment under Section 153C of the Income Tax Act, 1961 were not considered by the Assessing Officer. In such circumstances, the main relief, as prayed for in the present writ application, is to direct the respondents to consider objections and pass an appropriate order disposing of such objections. A Coordinate Bench of this Court vide order dated 29th December 2021 directed to consider the objections and pass an appropriate order in that regard. 2 Today, when the matter was taken up for hearing, Mr. Dhinal Shah, the learned counsel appearing for the writ applicant and Mr. M. R. Bhatt, the learned Senior Counsel appearing for the Revenue jointly Page 1 of 2

C/SCA/20153/2021 ORDER DATED: 08/02/2022 made a statement that the Assessing Officer has looked into the objections and has passed an order disposing of such objections. 3 In view of the aforesaid, Mr. Dhinal Shah, the learned counsel appearing for the writ applicant would like to withdraw this writ application with a permission to file a fresh application after going through the order passed by the A.O. disposing of the objections. 4 We dispose of this writ application as not pressed at this stage with the aforesaid liberty. The interim order passed by this Court directing that no final order of assessment shall be passed, shall continue for a period of two more weeks. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) CHANDRESH Page 2 of 2

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