M/S NEW TIME CONTRACTORS & BUILDERS PVT LTD vs. PRINCIPAL COMMISSIONER OF INCOME TAX & ORS

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CWP/14487/2015HC Punjab & HaryanaPHHC01077961201526 October 2016Author: MR. JUSTICE M.M. AGGARWAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing that if the petitioner makes an application to the Principal Commissioner of Income Tax, Chandigarh-I, by 10.11.2016, to oppose the transfer of its assessment to Ludhiana, the impugned orders passed under Section 127 of the Income Tax Act, 1961, shall be set aside. A fresh order will then be passed by the Principal Commissioner. The court also ordered that interim protection granted in the writ petition shall continue until the fresh order is passed and for two weeks thereafter, if the order is adverse to the petitioner. The court did not decide on the merits of the transfer itself but facilitated a procedural opportunity for the assessee to be heard.

What were the facts?

The petitioner, M/s New Time Contractors & Builders Pvt. Ltd., filed a writ petition before the High Court of Punjab and Haryana at Chandigarh. The petition challenged orders passed pursuant to a notice under Section 127 of the Income Tax Act, 1961, concerning the transfer of the petitioner's assessment. The respondents are the Principal Commissioner of Income Tax, Chandigarh and others. The court was informed that the petitioner could appear before the Principal Commissioner of Income Tax, Chandigarh-I, to oppose the transfer of its assessment to Ludhiana. The court also provided interim protection to the petitioner.

What were the issues?

1. Whether the petitioner has a right to be heard before an order for transfer of assessment proceedings is passed under Section 127 of the Income Tax Act, 1961? Assessee's Contention: The petitioner implicitly sought an opportunity to be heard and to oppose the transfer of its assessment proceedings. The filing of the writ petition suggests a grievance regarding the procedure or the proposed action. Revenue's Contention: The learned counsel for the respondents stated that the petitioner may appear before the Principal Commissioner of Income Tax, Chandigarh-I, and oppose the transfer of its assessment to Ludhiana, indicating a willingness to allow the petitioner to present its case.

Which sections of the Income-tax Act were involved?

Section 127

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-14487-2015 Date of decision:- 26.10.2016 M/s New Time Contractors & Builders Pvt. Ltd. ...Petitioner Versus Principal Commissioner of Income Tax, Chandigarh and others ...Respondents CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, CHIEF JUSTICE HON’BLE MR. JUSTICE DEEPAK SIBAL Present:- Mr. Sehajbir Singh, Advocate, for the petitioner. Ms. Urvashi Dhugga, Advocate, for respondents No. 1 and 2. Mr. Tajender K. Joshi, Advocate, for respondent No. 3. * * * * S.J. VAZIFDAR, C.J. (ORAL) Ms. Dhugga, learned counsel appearing on behalf of respondents No. 1 and 2 states that the petitioner may appear before the Principal Commissioner of Income Tax, Chandigarh-I and oppose the transfer of its assessment to Ludhiana.

2.

In the event of the petitioner making such an application to the Principal Commissioner of Income Tax, Chandigarh-I by 10.11.2016, the impugned orders passed pursuant to the notice under Section 127 of the Income Tax Act, 1961, shall be set aside and a fresh order shall be passed by the Principal Commissioner of Income Tax, Chandigarh-I.

3.

Till the order is passed and if adverse to the petitioner for a period of two weeks after the same is served upon the petitioner, interim protection granted in this writ petition shall continue.

4.

The writ petition is accordingly disposed of. (S.J. VAZIFDAR) CHIEF JUSTICE (DEEPAK SIBAL) JUDGE 26.10.2016 Amodh Whether speaking/reasoned Yes/No√ Whether reportable Yes/No√ Amodh Sharma 2016.10.26 17:11 I attest to the accuracy and authenticity of this document chandigarh

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