SAKAL PAPERS PVT. LTD. vs. ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 5 PUNE AND ORS

PDF · subscribers
WP/9327/2021HC BombayHCBM01043668202122 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 counsel for the respondents, granted the petitioner's prayer clause (a). The Court quashed and set aside the impugned assessment order dated September 28, 2021, the notice of demand dated September 28, 2021, and the penalty notice dated September 28, 2021. The matter was remanded for denovo consideration. The Court directed the concerned authority to pass a fresh assessment order strictly complying with the mandatory provisions of Section 144B of the Income Tax Act, 1961. This included considering all submissions made by the petitioner and granting a personal hearing. The authority was instructed to provide at least seven days' notice for the personal hearing and to pass the assessment order within twelve weeks of the order being uploaded.

What were the facts?

The petitioner, Sakal Papers Pvt. Ltd., filed a writ petition before the Bombay High Court challenging an assessment order dated September 28, 2021, passed by the Assistant Commissioner of Income Tax (Respondent No. 2) under Section 144 read with Section 144B of the Income Tax Act, 1961. The petitioner also challenged a notice of demand under Section 156 and a penalty notice under Section 270A, both dated September 28, 2021. The core grievance of the petitioner was that the draft assessment order was not served on the assessee. The respondents, through their counsel, conceded that the petitioner's grievance regarding the non-service of the draft assessment order was justified.

What were the issues?

1. Whether the assessment order dated September 28, 2021, passed under Section 144 read with Section 144B of the Income Tax Act, 1961, is liable to be quashed and set aside due to the non-service of the draft assessment order on the assessee. The Assessee (Petitioner) contended that the non-service of the draft assessment order is a procedural lapse that vitiates the subsequent assessment order, notice of demand, and penalty notice. The assessee argued that this failure to provide the draft assessment order prevented them from making effective submissions, thereby violating principles of natural justice. The Revenue (Respondents) conceded that the petitioner's grievance regarding the non-service of the draft assessment order was justified. They did not present any counter-arguments against this specific point but agreed to the prayer for remand.

Which sections of the Income-tax Act were involved?

Section 144,Section 144B,Section 156,Section 270A

AI-generated summary — verify with the full judgment below

1/2 940-WP 9327-2021.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 9327 OF 2021 Sakal Papers Pvt. Ltdd.

….Petitioner V/s. Asstt. Commissioner of Income Tax Circle 5 Pune and Ors. …Respondents ---- Mr. P.S. Jetley, Senior Advocate a/w Mr. Sameer Dalal for Petitioner. Mr. Suresh Kumar for Respondents. ---- CORAM : K.R. SHRIRAM & AMIT B. BORKAR, JJ.

DATED : 22ND DECEMBER 2021 P.C. :

1.

Mr. Suresh Kumar, counsel for respondents and as an Officer of the Court, in fairness states that the grievance of petitioner that draft assessment order was not served on the assessee appears to be a justified reason and therefore, the Court may grant prayer clause - (a) and remand the matter for denovo consideration. Prayer clause - (a) reads as under : (a) that this Hon’ble Court be pleased to issue a Writ of Certiorari or any other writ order or direction under Article 226 of the Constitution of India calling for the records of the case leading to passing of the impugned order and after going through the same and examining the question of legality thereof quash, cancel and set aside the impugned assessment order dated 28th September 2021 (Exhibit - ‘M’) passed under section 144 r.w.s. 144B of the Income Tax Act, 1961 by Respondent No.2 as well as the notice of demand dated 28th September 2021 (Exhibit - ‘O’) issued under section 156 of the Income Tax Act, 1961 by Respondent No.2 and penalty notice dated 28th September, 2021 (Exhibit - ‘P’) issued under section 270 A of the Income Tax Act, 1961 by Respondent No.

2.

Purti Parab PURTI PRASAD PARAB PURTI PRASAD PARAB Date: 2021.12.23 17:49:50 +0530

2/2 940-WP 9327-2021.doc

2.

In view of the above, we hereby grant prayer clause - (a) quoted above and remand the matter for denovo consideration with a direction to the concerned authority to pass the assessment order and strictly comply with the mandatory provisions prescribed under Section 144 (B) 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 atleast 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.) Purti Parab

More judgments on Section 144B

All 10,521 judgments and leading authorities on Section 144B →

Recent GST High Court judgments

Search GST case law →