M/S AMCO INDUSTRIAL ENTERPRISES PVT LTD vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE1 AAYAKAR BHAWAN

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CWP/26015/2016HC Punjab & HaryanaPHHC01091772201627 April 2017Author: MR. JUSTICE SURINDER GUPTA,MRS JUSTICE DAYA CHAUDHARY2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court did not decide the merits of the reassessment proceedings or the validity of the order disposing of objections. Instead, the Court noted that the respondent-Revenue had pointed out that the order under challenge was appealable and that the Assessing Officer had proceeded to frame the reassessment in the absence of an interim order. The learned counsel for the petitioner did not dispute the availability of an alternative remedy of appeal. Consequently, the petitioner prayed for time to file an appeal. The Court granted the petitioner three weeks from the date of the order to file an appeal before the Appellate Authority, challenging both the assessment order passed pursuant to the reassessment proceedings and the initiation of the reassessment itself. The Court clarified that if the appeal was filed within the stipulated time, it would not be dismissed on the ground of limitation. The writ petition was disposed of on this basis.

What were the facts?

The petitioner, M/s Amco Industrial Enterprises Pvt. Ltd., filed a writ petition before the High Court of Punjab & Haryana at Chandigarh challenging an order dated 09.12.2016. This order, passed by the Deputy Commissioner of Income Tax, Circle-1, Ludhiana, disposed of the petitioner's objections to the reopening of its assessment under Section 148 of the Income Tax Act, 1961. The Assessing Officer had held that there was sufficient material to form a reasonable belief that income had escaped assessment, justifying the initiation of reassessment proceedings. During the pendency of the writ petition, the Assessing Officer framed the reassessment. The Revenue pointed out that the order was appealable and no interim order had been granted.

What were the issues?

1. Whether the initiation of reassessment proceedings under Section 148 of the Income Tax Act, 1961, was valid, based on the Assessing Officer's formation of a reasonable belief that income had escaped assessment? The assessee (petitioner) approached the High Court seeking to quash the order disposing of their objections to the reopening of assessment. The core of their challenge was the validity of the reassessment proceedings initiated under Section 148. The revenue (respondent) contended that the Assessing Officer had relevant material to form a reasonable belief for reopening the assessment and that the order disposing of objections was appealable. They also noted that the reassessment had been framed as no interim order was granted.

Which sections of the Income-tax Act were involved?

Section 148,Section 147

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Date of decision: 27.04.2017 M/s Amco Industrial Enterprises Pvt. Ltd. ..... Petitioner Versus Deputy Commissioner of Income Tax, Circle-1, Ludhiana ..... Respondents CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE RAMENDRA JAIN PRESENT: Mr. SK Mukhi and Mr. Rajiv Sharma, Advocates for the petitioner. Mr. Rajesh Katoch, Advocate for the respondent-Revenue. AJAY KUMAR MITTAL, J. (ORAL) 1. The petitioner has approached this Court under Article 226 of the Constitution of India, inter alia seeking quashing of the order dated 09.12.2016 (Annexure P-13) whereby the objections filed by the petitioner to the reopening of the assessment of the income tax under Section 148 of the Income Tax Act, 1961 (for short 'the Act') was disposed of and it was held that the Assessing Officer had the relevant material for forming a reasonable belief that income has escaped assessment and, therefore, the initiation of reassessment proceedings under Section 148 of the Act is in order. 2. Learned counsel for the respondent-Revenue has pointed out that since no interim order was granted to the petitioner by this Court, therefore, the Assessing Officer has framed the reassessment in pursuance Rishu Kataria 2017.05.01 11:03 I attest to the accuracy and authenticity of this document

to the proceedings initiated under Sections 147/148 of the Act. It was also urged that the said order is an appealable order. 3. In view of the above, learned counsel for the petitioner did not dispute that the petitioner has the alternative remedy of appeal challenging the assessment order which was passed during the pendency of instant writ petition and also the initiation of proceedings for re-assessment under Sections 147/148 of the Act which have been impugned herein. He, however, prayed that sometime may be granted to the petitioner to file an appeal before the Appellate Authority and the same be not dismissed on the ground of limitation. 4. Accordingly, while disposing of the instant writ petition, we grant three weeks' time from today to the petitioner to file an appeal before the Appellate Authority wherein the petitioner shall be entitled to challenge the assessment order passed in pursuance to the proceedings initiated under Sections 147/148 of the Act and also the initiation of proceedings for re-assessment as sought to have been raised herein. 5. It is, however, clarified that if any such appeal is filed by the petitioner before the Appellate Authority within the stipulated time, the same shall not be dismissed on the ground of limitation. 6. The instant writ petition stands disposed of, accordingly. ( AJAY KUMAR MITTAL ) JUDGE April 27, 2017 ( RAMENDRA JAIN ) rishu JUDGE Whether speaking/reasoned Yes/No Whether Reportable Yes/No Rishu Kataria 2017.05.01 11:03 I attest to the accuracy and authenticity of this document

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