Director General Of Income Tax(Inv) vs. Sanghvi Dhanrajpuriji Devji And Co.

RP/219/2024HC Madhya Pradesh22 April 2024Author: HON'BLE SHRI JUSTICE RAJ MOHAN SINGH2 pages

For Petitioner: Siddharth Sharma

AI SummaryPartly Allowed

What did the High Court hold?

The High Court held that the parties had arrived at a consensus for the review. The Court allowed the review petition to the extent that the Joint Director of Income Tax (Inv) (respondent no. 2) would be at liberty to refer the case to the concerned Jurisdictional Assessing Officer if he/she found himself/herself not to be the competent authority. The remaining part of the original order dated 08.02.2024 was to be kept intact for further compliance by the Jurisdictional Assessing Officer. The time for taking a decision on the application was extended by 30 days from the date of production of the copy of the review order. The Court reiterated that the competent authority shall decide the issue on merits without being influenced by the stand taken by the parties. No issue was expressly left undecided.

What were the facts?

The Director General of Income Tax (Inv) and other revenue authorities filed a review petition seeking modification of an order dated 08.02.2024 passed in W.P. No. 31810/2023. The original writ petition was filed by Sanghvi Dhanrajpuri Ji Devji and Co. The order under challenge directed the Joint Director of Income Tax (Inv) (respondent no. 2) to decide the application filed by the writ petitioner within 30 days on merits, without being influenced by the revenue's stand in its return. This original order was passed based on a consensus between the parties. The review petition sought to clarify that if the Joint Director was not the competent authority, the case should be referred to the Jurisdictional Assessing Officer, with the remaining part of the order to be complied with by the said officer.

What were the issues?

1. Whether the order dated 08.02.2024, which directed the Joint Director of Income Tax (Inv) to decide the application within 30 days on merits, needs to be reviewed regarding the competency of the authority to decide. Assessee's Contention: The assessee (writ petitioner) agreed with the proposal that if the Joint Director (respondent no. 2) is not the competent authority, the case should be referred to the concerned Jurisdictional Assessing Officer, and the rest of the order should remain intact for compliance by the said officer. The assessee also agreed to the extension of time for decision. Revenue's Contention: The revenue (review petitioners) sought a review of the order to clarify that in case the Joint Director of Income Tax (Inv) is found not to be the competent authority, he/she should refer the case to the concerned Jurisdictional Assessing Officer. The revenue also agreed to the extension of time for decision by 30 days from the date of production of the order.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE RAJ MOHAN SINGH & HON'BLE SHRI JUSTICE VIVEK JAIN ON THE 22nd OF APRIL, 2024 REVIEW PETITION No. 219 of 2024 BETWEEN:- 1. DIRECTOR GENERAL OF INCOME TAX(INV) CENTRAL REVENUE BUILDING HOSHANGABAD ROAD BHOPAL (MADHYA PRADESH) 2. JOINT DIRECTOR OF INCOME TAX (INV) RAMNATH BUILDING NEAR BHAWARTAL GARDEN (MADHYA PRADESH) 3. DEPUTY DIRECTOR OF INCOME TAX (INV) RAMNATH BUILDING NEAR BHAWARTAL GARDEN (MADHYA PRADESH) .....PETITIONERS (BY SHRI SIDDHARTH SHARMA - ADVOCATE) AND SANGHVI DHANRAJPURIJI DEVJI AND CO. THROUGH ITS PARTNER VINIT N RANAWAT S/O NAVRATNA M RANAWAT AGE 44 R/O A.P. MARG KHED GULLY X-LANE PRABHDEVI MUMBAI (MAHARASHTRA) .....RESPONDENT (BY SHRI SAPAN USRETHE - ADVOCATE) This petition coming on for admission this day, Justice Raj Mohan Singh passed the following:

ORDER The present review petition has been preferred by the respondents in W.P. No.31810/2023, titled Sanghvi Dhanurupji Devaji & Co. vs. Director General of Income Tax & Ors., seeking review of the order dated 08.02.2024, 1 (RAJ MOHAN SINGH) JUDGE (VIVEK JAIN) JUDGE to the extent of issuing directions to the respondent no.2 to take a decision on the application within 30 days from the date of production of the copy of the order dated 08.02.2024. Vide the aforesaid order, direction was issued to the respondent no.2 in the writ petition to decide the application filed by the writ petitioner within a specified period on merits without being influenced by the stand taken in the return filed by the review petitioner. The said order was passed on the consensus arrived at between the parties. In view of the stand taken in the review petition as well as the opposition made by the writ petitioner, both the parties have again arrived at a consensus that the respondent no.2 may be held at liberty that in case, the respondent no.2 finds itself to be not the competent authority, he/she may refer the case to the concerned Jurisdictional Assessing Officer and the remaining part of the order may be kept intact for further compliance by the said Jurisdictional Assessing Officer. Time for taking decision on the application is further extended by 30 days from the date of production of copy of this order. We have no doubt that the competent authority shall decide the issue on merits without being influenced by the stand taken by the parties herein. With the aforesaid observation, the review petition stands disposed of. Certified copy, as per rules. Priya.P

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