ANJUMAN DARAD MANDANE TALIM O TARAKKI TRUST MAHAD vs. ADDITIONAL COMMISSIONER OF INCOME TAX AND ORS

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WP/4441/2021HC BombayHCBM01026196202121 December 2021Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE AMIT BORKAR2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, in view of the concession made by the Revenue's counsel, granted the petitioner's prayer. The Court set aside the impugned Assessment Order for AY 2018-19 and remanded the matter back to the concerned authority for de novo consideration. The Court directed the authority to strictly comply with the mandatory provisions prescribed under Section 144B of the Income Tax Act, 1961. This includes considering all submissions made by the petitioner and granting a personal hearing. The notice for the personal hearing is to be given at least seven days in advance. The Assessment Order is to be passed within twelve weeks of the order being uploaded. The Court did not decide on the merits of the assessment itself but focused on the procedural irregularities.

What were the facts?

The petitioner, Anjuman Darad Mandane Talim O Tarakki Trust Mahad, filed a writ petition before the Bombay High Court challenging an assessment order for Assessment Year 2018-19. The petitioner's grievance was that a show-cause notice-cum-draft assessment order was not issued, and a final order was passed without providing an adequate opportunity to be heard or to file required documents and information. The Revenue, represented by the Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer, National E-Assessment Centre, Delhi & Ors., conceded that the petitioner's grievance was justified.

What were the issues?

1. Whether the impugned Assessment Order for AY 2018-19 is liable to be set aside on the ground that a show-cause notice-cum-draft assessment order was not issued and the final order was passed without affording the petitioner a reasonable opportunity of being heard and to file required documents and information, thereby violating the principles of natural justice and the mandatory provisions of Section 144B of the Income Tax Act, 1961? Assessee's Contention: The petitioner argued that the assessment order was bad in law as it was passed without issuing a show-cause notice-cum-draft assessment order and without providing a reasonable opportunity to present their case, including filing necessary documents. They relied on the principles of natural justice. Revenue's Contention: The Revenue, through its counsel, fairly conceded that the petitioner's grievance regarding the non-issuance of a show-cause notice-cum-draft assessment order and the subsequent passing of the final order was justified. The Revenue agreed to the prayer for remanding the matter for de novo consideration.

Which sections of the Income-tax Act were involved?

Section 144B

AI-generated summary — verify with the full judgment below

1 924-WP 4441-21.odt IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.4441 OF 2021 Anjuman Darad Mandane Talim O Tarakki ] Trust Mahad ] … Petitioner Versus Additional/Joint/Deputy/Assistant Commissioner ] of Income Tax/Income Tax Officer, ] National E-Assessment Centre, Delhi & Ors. ] … Respondents Mr. Riyaz Padvekar a/w Tanzil R. Padvekar for Petitioner. Mr. Sham V. Walve a/w Mr. Pritish Chatterjee for Respondents – Revenue.

CORAM :- K. R. SHRIRAM

&

AMIT B. BORKAR

, JJ.

DATE :- 21 DECEMBER

, 20

21

P. C. :-

1.

Mr. Walve, learned Counsel for Respondents and as an Officer of the Court, in fairness states that the grievance of Petitioner that show- cause notice-cum-draft Assessment Order was not issued and final order came to be passed, appears to be a justified reason and therefore, the Court may grant prayer clause (a) and remand the matter for de novo consideration. Prayer clause (a) reads as under : “(a) issue a Writ of Certiorari or a Writ in the nature of Certiorari or Writ of Mandamus or Writ in the nature of Mandamus or any other appropriate Writ, direction of Order under Article 226 of the Constitution of India URS 1 of 2 UMESH RAMESH SHINDE RAMESH SHINDE Date: 2021.12.23 11:15:30 +0530

2 924-WP 4441-21.odt setting aside impugned Assessment Order with direction to the Respondents to pass fresh Assessment Order for the A.Y.2018-19 after giving reasonable opportunity of being heard and also to allow Petitioner to file required document and information and then to pass reason Assessment Order as per the provisions of law.”

2.

In view of the above, we hereby grant prayer clause (a) quoted above and remand the matter for de novo consideration with a direction to the concerned authority to pass the Assessment Order and strictly comply with the mandatory provisions prescribed under Section 144B of the Income Tax Act, 1961 including considering all the submissions made by Petitioner and also granting a personal hearing. Notice about personal hearing shall be given at least seven days in advance and the Assessment Order, after complying with the procedure required, shall be passed within twelve weeks of this order getting uploaded.

3.

Petition disposed. (AMIT B. BORKAR, J.) (K. R. SHRIRAM, J.) URS 2 of 2

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