CARRARO INDIA PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1(1)

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WP/6499/2024HC BombayHCBM01021483202407 May 2024Bench: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE JUSTICE DR. NEELA KEDAR GOKHALE2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court quashed and set aside the impugned assessment order dated 22nd March 2024, passed under Section 143(3) read with Section 254, Section 144C(13), and Section 144B of the Income Tax Act, 1961, for Assessment Year 2011-2012. The Court also quashed the consequential notice of demand under Section 156 and the show-cause notice under Section 274 read with Section 271(1)(c) of the Act, both dated 22nd March 2024. The Court's decision was based on the finding that the assessment order was passed without following the mandatory procedure laid down in Section 144C(1) of the Act. The Court explicitly stated that it was not going into the merits of the matter. The petition was allowed in terms of prayer clause (a), which sought to quash the impugned orders and accept the income returned by the Petitioner. No issue was left undecided.

What were the facts?

The assessee, Carraro India Private Limited, filed a writ petition before the Bombay High Court challenging an assessment order passed under Section 143(3) read with Section 254, Section 144C(13), and Section 144B of the Income Tax Act, 1961, for Assessment Year 2011-2012. The petition also challenged the consequential notice of demand under Section 156 and a show-cause notice under Section 274 read with Section 271(1)(c) of the Act, all dated 22nd March 2024. The core of the petitioner's grievance was that the assessment order was passed without adhering to the mandatory procedure stipulated in Section 144C(1) of the Act. The Revenue was represented by the Deputy Commissioner of Income Tax, Circle-1(1), Pune.

What were the issues?

1. Whether the assessment order passed under Section 143(3) read with Section 254, Section 144C(13), and Section 144B of the Income Tax Act, 1961, for Assessment Year 2011-2012 is liable to be quashed for non-compliance with the procedure laid down in Section 144C(1) of the Act. The Petitioner argued that the assessment order was passed without following the mandatory procedure prescribed under Section 144C(1) of the Act, which requires the Assessing Officer to refer the case to the Dispute Resolution Panel if the assessee has objected to any variation proposed in the draft assessment order. The Petitioner sought to quash the assessment order, notice of demand, and show-cause notice on this procedural ground. The Revenue contended that the assessment order was validly passed. However, the judgment does not detail the specific arguments or authorities relied upon by the Revenue in support of its contention.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(1),Section 144C(13),Section 144B,Section 254,Section 156,Section 274,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

1/2 1016-aswp-6499-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 6499 OF 2024 Carraro India Private Limited …Petitioner Versus The Deputy Commissioner of Income Tax, Circle-1(1), Pune & Ors. …Respondents Mr. S. Sriram a/w Mr. Samyak Navedia i/b Mr. Sriram Sridharan for Petitioner. Mr. Arjun Gupta for Respondents-Revenue. CORAM: K. R. SHRIRAM & DR. NEELA GOKHALE, JJ. DATED: 7th May 2024 PC:- 1. After the petition was heard for some time, the Court felt that Petitioner had a justifiable case. The assessment order under Section 143(3) read with Section 254 read with Section 144C(13) read with Section 144B of the Income Tax Act, 1961 (“the Act”) has been passed for Assessment Year 2011-2012 without following the procedure laid down in Section 144C(1) of the Act. Hence, without going into the merits of the matter, we hereby quash and set aside the impugned assessment order dated 22nd March 2024 passed under Section 143(3) read with Section 254 read with Section 144C(13) read with Section 144B of the Ac as well as the impugned notice of demand issued under Section 156 of the Act and the impugned show- cause notice issued under Section 274 read with section 271(1(c) of the Act also dated 22nd March 2024 for Assessment Year 2011-2012 Gitalaxmi

2/2 1016-aswp-6499-2024.doc and allow the petition in terms of prayer clause (a), which reads as under : “(a) that this Hon’ble Court may be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the record of the case and after going through the same and examining the legality thereof, to quash and cancel the impugned final assessment order dated 22nd March 2024 passed u/s. 143(3) r.w.s. 254 r.w.s. 144B r.w.s. 144C(13) of the Act (Ex. ‘I’), the notice of demand dated 22nd March 2024 issued u/s. 156 of the Act (Ex. ‘J’) and the show-cause notice dated 22nd March 2024 issued u/s. 274 r.w.s. 271(l)(c) of the Act (Ex. ‘K’) for the AY 2011- 12, and to accept the income returned by the Petitioner for the AY 2011-12.” 2. Petition disposed. No order as to costs. (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.) Gitalaxmi GITALAXMI KRISHNA KOTAWADEKAR Digitally signed by GITALAXMI KRISHNA KOTAWADEKAR Date: 2024.05.10 17:44:25 +0545

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