DHIRENDRA MADAN, S/O SHRI DASS RAM MADAN vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/15308/2022HC RajasthanRJHC02082421202212 March 2024Bench: PANKAJ MITHAL,SHUBHA MEHTA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court perused the Assessment Order dated 16.05.2023. It observed that the Assessing Authority had accepted the plea of the assessee and also accepted the return income as filed by the assessee. Consequently, the Court found that nothing survived in the present civil writ petition. The petition was accordingly dismissed. The Court did not explicitly decide on the validity of the notices or the instruction, as the matter became infructuous due to the acceptance of the assessee's return income by the Assessing Authority. The ratio decidendi is that if the Assessing Authority accepts the assessee's return income, any challenge to the reassessment proceedings initiated prior to such acceptance becomes infructuous.

What were the facts?

The petitioner, Dhirendra Madan, filed a civil writ petition challenging orders and notices issued by the Assistant Commissioner of Income Tax, Circle 4, Jaipur, concerning Assessment Year (AY) 2014-2015. The petitioner sought to set aside an order dated 21.07.2022 under Section 148A of the Income Tax Act, 1961, a notice dated 28.06.2021 under Section 148, and a notice dated 21.07.2022 with an intimation letter dated 23.07.2022 under Section 148. Additionally, the petitioner sought to quash proceedings and stay their implementation. The petition also challenged CBDT Instruction No. 1/2022 concerning AY 2013-2014 and 2014-2015. The High Court considered an application to take additional documents on record, which was allowed.

What were the issues?

1. Whether the proceedings initiated vide the impugned Notice dated 28.06.2021 for AY 2014-2015 issued under Section 148 of the Act of 1961 are liable to be quashed? (Question of law) 2. Whether the order dated 21.07.2022 issued under Section 148A of the Act of 1961 is liable to be set aside? (Question of law) 3. Whether Instruction No.1/2022 issued by the Central Board of Direct Taxes to the extent applicable on Assessment Year 2013-2014 and 2014-2015 is against the proviso 1 of Section 149 of the Act of 1961 as amended with Finance Act, 2021? (Question of law) Assessee's Contentions: The petitioner argued that the return income has been accepted in the Assessment Order dated 16.05.2023. The petitioner also challenged the validity of the notices and orders under Sections 148 and 148A, and the applicability of CBDT Instruction No. 1/2022 in light of Section 149 of the Act. Revenue's Contentions: No specific contentions for the revenue were recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 15308/2022 Dhirendra Madan, S/o Shri Dass Ram Madan, Aged About 63 Years, R/o B-22, Prabhu Marg, Tilak Nagar, Jaipur 302004 ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Circle 4, Jaipur, Ncr Building, Statue Circle, Jaipur 2. Union Of India, Through Finance Secretary, Ministry Of Finance (Department Of Revenue), Central Board Of Direct Taxes, North Block, New Delhi 110002 ----Respondents For Petitioner(s) : Mr. Kanishk Singhal For Respondent(s) : Mr. Sandeep Pathak with Ms. Vartika Mehra HON'BLE MR. JUSTICE PANKAJ BHANDARI HON'BLE MRS. JUSTICE SHUBHA MEHTA Order 12/03/2024 1. Petitioner has preferred this civil writ petition with the following prayer:- “1. Issue a Writ of Certiorari or Writ of Mandamus or appropriate writ, direction or order setting aside the impugned order dated 21.07.2022 issued under Section 148(A) of the Act of 1961 issued by the Respondent in the petitioner’s case of AY 2014-2015; 2. Issue a Writ of Certiorari or Writ of Mandamus or appropriate writ, direction or order quashing the proceedings initiated vide the impugned Notice dated 28.06.2021 for AY 2014- 2015 issued under Section 148 of the Act of 1961; 3. Issue a Writ of Certiorari or Writ of Mandamus or appropriate writ, direction or order quashing the proceedings initiated vide the impugned Notice dated 21.07.2022 with Intimation Letter dated 23.07.2022 issued by the Respondent under Section 148 of the Act of 1961 for

(2 of 2) [CW-15308/2022] Assessment Year 2014-2015 till the disposal of the present writ petition; 4. Pending the admission, hearing and final disposal of this writ petition, to stay implementation and operation of the order dated 21.07.2022 and notice dated 21.07.2022 with Intimation Letter dated 23.07.2022 and stay further proceedings for assessment year 2014-2015. 5. Issue a Writ of Certiorari or Writ of Mandamus or appropriate writ, direction or order setting aside the “Instruction No.1/2022 issued by the Central Board of Direct Taxes to the extent applicable on Assessment Year 2013-2014 and 2014-2015 as it is against the proviso 1 of Section 149 of the Act of 1961 as amended with Finance Act, 2021 6. Any other order/direction, which Hon’ble Court deems appropriate in the interest of justice.” 2. The matter comes up on an application(01/2023) filed under Section 151/152 of Code of Civil Procedure, 1908 for taking additional documents on record. 3. For the grounds mentioned in the application(01/2023), the same is allowed. 4. It is contended by counsel for the petitioner that return income has been accepted in the Assessment Order dated 16.05.2023. 5. We have perused the order dated 16.05.2023. 6. The Assessing Authority has accepted the plea of the assessee and has also accepted return income as filed by the assessee, hence, nothing survive in the present civil writ petition and the same is accordingly, dismissed. (SHUBHA MEHTA),J (PANKAJ BHANDARI),J HEENA/45

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