Rina Amrit Dhakad vs. Income Tax Officer Ward 27 3 1

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WP/14158/2024HC BombayHCBM01047674202414 October 2024Author: HON'BLE SHRI JUSTICE G. S. KULKARNI,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that in similar circumstances, it would be appropriate for the petitioner/assessee to pursue their appeals before the Commissioner of Income Tax (Appeals). The Court permitted the petitioner to file an interim application before the appellate authority, praying for the appeals to be disposed of in view of the decision of the High Court in Hexaware. The Court directed that the impugned assessment shall not be acted upon until the proceedings before the appellate forum are decided. All contentions of the parties on the pending proceedings were expressly kept open. The ratio decidendi is that when an appeal is pending and relevant High Court precedents exist, the assessee should pursue the appeal and seek expeditious disposal based on such precedents, with a stay on the assessment order until the appellate decision.

What were the facts?

The petitioner, Rina Amrit Dhakad, filed a writ petition before the Bombay High Court challenging an order and notice issued by the Income Tax Officer Ward- 27(3)(1), Mumbai. The petitioner had already filed an appeal against the impugned order before the Commissioner of Income Tax (Appeals). The High Court referred to its previous decisions in Rajan Pradeepkumar Dubey vs. Income Tax Officer and Astra Exim Pvt. Ltd. vs. The Income Tax Officer, where similar situations arose. In those cases, the Court had directed the assessee to pursue their appeals before the appellate authority and also to file an interim application for disposal of the appeals in light of a specific High Court decision (Hexaware). The assessment was to remain stayed until the appellate proceedings were decided, with all contentions kept open.

What were the issues?

1. Whether the petitioner should pursue their appeal before the Commissioner of Income Tax (Appeals) in light of the impugned order and notice. 2. Whether the petitioner should be permitted to file an interim application before the appellate authority for disposal of the appeal based on the decision in Hexaware. Assessee's Contention: The petitioner, through their counsel, fairly submitted that they had filed an appeal challenging the impugned order and notice before the Commissioner of Income Tax (Appeals). The petitioner implicitly sought guidance from the Court on how to proceed, given the pendency of the appeal and the existence of relevant High Court precedents. Revenue's Contention: The judgment records no specific contentions from the respondents (Revenue).

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

914-WP-14158-2024.DOC Ashvini Narwade IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 14158 OF 2024 Rina Amrit Dhakad … Petitioner Versus The Income Tax Officer Ward- 27(3)(1), Mumbai & Others …Respondents Mr. Jitendra Singh Advocate a/w. Ms. Shivali S. Mhatre for the Petitioner. Mr. Arjun Gupta, for the Respondents. _______________________ CORAM: G. S. KULKARNI & FIRDOSH P. POONIWALLA, JJ. DATED: 14th OCTOBER, 2024 _______________________ P.C. 1. We have heard learned counsel for the parties. 2. Learned counsel for the petitioner fairly submits that the petitioner has filed an appeal challenging the impugned order and notice before the Commissioner of Income Tax (Appeal). 3. In similar circumstances, proceedings had arisen before this Court in the case of Rajan Pradeepkumar Dubey vs. Income Tax Officer, Ward 3(2), Kalyan & Ors.1 as also in Astra Exim Pvt. Ltd. vs. The Income Tax Officer, Ward-9(1) (1), Mumbai & Ors.2, wherein when an appeal was filed by the assessee therein, this Court had taken a view that it would be appropriate that the 1 Writ Petition No. 11166 of 2024 dated 12 August, 2024. 2 Astra Exim Pvt. Ltd. vs. The Income Tax Officer, Ward-9(1)(1), Mumbai & Ors Page 1 of 3 14th October, 2024 914-WP-14158-2024.DOC petitioner/assessee pursue the appeals as also make an interim application before the Appellate Authority praying that the appeals be disposed of in view of the decision of this Court in Hexaware. For convenience, we note the operative order passed by this Court in Astra Exim Pvt. Ltd. (supra).

O R D E R i) The petitioner shall pursue its appeals already filed before the Commissioner of Income-tax (Appeals), against the impugned assessment order. It is open to the petitioner to raise contentions on the impugned notice and the order having become untenable, in the light of the decision of this Court in Hexaware. ii) We also permit the petitioner to file an application before the appellate authority praying that the appeals be disposed of in view of the decision of this Court in Hexaware. If such an interim application is made, certainly the appellate authority shall expeditiously consider the petitioner’s application and all contentions raised thereon. Iii) Until the proceedings before the appellate forum are decided, the impugned assessment shall not be acted upon. iv) All contentions of the parties on the pending proceedings are expressly kept open.”

As it is fairly conceded at the bar that the view taken by this Court in Rajan Pradeepkumar Dubey (supra) as also Astra Exim Pvt. Ltd. (supra) would be applicable in the present case, we dispose of this petition in terms of the following order: O R D E R (i) The petitioner shall pursue its appeals already filed before the Commissioner of Income-tax (Appeals), against the 14th October, 2024

914-WP-14158-2024.DOC impugned assessment order. It is open to the petitioner to raise contentions on the impugned notice and the order having become untenable, in the light of the decision of this Court in Hexaware. ii) We also permit the petitioner to file an application before the appellate authority praying that the appeal be disposed of in view of the decision of this Court in Hexaware. If such an interim application is made, certainly the appellate authority shall expeditiously consider the petitioner’s application and all contentions raised thereon. iii) Until the proceedings before the appellate forum are decided, the impugned assessment shall not be acted upon. iv) All contentions of the parties on the pending proceedings are expressly kept open. (FIRDOSH P. POONIWALLA, J.) (G. S. KULKARNI , J.) 14th October, 2024

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