M/S PUNJAB POLICE HOUSING CORPORATION LTD. vs. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX & ORS

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CWP/14376/2017HC Punjab & HaryanaPHHC01082840201719 December 2017Bench: MR. JUSTICE SURINDER GUPTA,MR. JUSTICE ARUN MONGA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the Assessing Officer had framed a best judgment assessment under Section 144 of the Act following the initiation of reassessment proceedings under Sections 147 and 148. The petitioner informed the Court that the challenges to the reassessment proceedings, rejection of objections, and the best judgment assessment were now being pursued in separate, fresh writ petitions. Therefore, the petitioner sought permission to withdraw the present writ petitions with liberty to pursue the matter in the aforesaid new writ petitions. The Court allowed the withdrawal of the present writ petitions with the liberty as prayed for. No decision on the merits of the issues raised in the original petitions was made.

What were the facts?

The petitioner, M/s Punjab Police Housing Corporation Ltd., filed multiple writ petitions before the High Court of Punjab and Haryana challenging the reasons and notice for reopening assessment under Sections 147/148 of the Income Tax Act, 1961, for Assessment Year 2010-11. They also challenged the sanction order passed under Section 151 and subsequent communications. During the pendency of these petitions, the Assessing Officer framed a best judgment assessment under Section 144 of the Act pursuant to the reassessment proceedings. The petitioner informed the Court that the initiation of reassessment proceedings, rejection of objections, and the best judgment assessment have been challenged in fresh writ petitions (CWP Nos. 29006 & 29007 of 2017). Consequently, the petitioner sought to withdraw the present writ petitions to pursue the matter in the newly filed petitions.

What were the issues?

1. Whether the reasons dated 30th March, 2017, and notice dated 31st March, 2017, issued under Sections 147/148 of the Income Tax Act, 1961, for Assessment Year 2010-11, were illegal, without jurisdiction, and a result of malafide exercise of power? (Question of law and fact, concerning Sections 147/148 of the Act). 2. Whether the order passed under Section 151 of the Act by respondent No.2, granting sanction for re-opening/re-assessment for Assessment Year 2010-11, was contrary to law and a result of mechanical, malafide exercise of power and against the principles of natural justice? (Question of law and fact, concerning Section 151 of the Act). Assessee's contentions: The petitioner argued that the reassessment proceedings, rejection of objections, and the subsequent best judgment assessment were illegal. They sought to withdraw the present petitions to pursue these challenges in newly filed writ petitions. Revenue's contentions: No specific contentions were recorded for the revenue in this order as the matter was disposed of on withdrawal.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 151,Section 144

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No. 14376 of 2017 Decided on : 19.12.2017 M/s Punjab Police Housing Corporation Ltd. . . . Petitioner Versus The Pr.Chief Commissioner of Income Tax, Chandigarh and others . . . Respondents CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE AMIT RAWAL PRESENT: Mr. Sanjay Bansal, Sr. Advocate with Mr. B.M. Monga, Advocate and Mr. Amit Parsad, Advocate for the petitioner(s). **** AJAY KUMAR MITTAL, J. (Oral) This order shall dispose of CWP Nos. 14376, 14407, 27771 & 27739 of 2017, as according to the learned counsel for the petitioner(s), the issues involved therein are interconnected. 2. The petitioner(s) has approached this Court under Articles 226/227 of the Constitution of India, seeking quashing of the reasons dated 30th March, 2017 and notice dated 31st March, 2017 (appended as Annexures P-19 & P-21), under Sections 147/148 of the Income Tax Act, 1961 (in short 'the Act'), issued by respondent No.3 being illegal, without jurisdiction and a result of malafide exercise of power. A further prayer has also been made for setting aside the order {Annexure P-20 (colly)}, passed under Section 151 of the Act by respondent No.2 qua granting sanction for re-opening/re-assessment for the Assessment Year 2010-11 being contrary to law and a result of mechanical, malafide exercise of power and against the principles of natural justice. Petitioner(s) has also sought any other appropriate writ, order or direction, quashing and vacating the letter/Order Jawala Ram 2017.12.22 11:39 I attest to the accuracy and authenticity of this document Chandigarh

CWP No. 14376 of 2017 - 2 - dated 29/30/05/2017 and 02.06.2017 (Annexures P-25 and P-26), passed by respondent No.1 as well as restraining respondent No.3 from passing the Order of Assessment/Reassessment for the Assessment Year 2010-11, till the final decision of this writ petition. 3. Learned counsel for the petitioner(s) submits that during the pendency of the writ petitions in this Court, the Assessing Officer has framed the best judgment assessment under Section 144 of the Act in pursuance to the re-assessment proceedings initiated under Sections 147 and 148 of the Act. It was prayed that the initiation of re-assessment proceedings and orders of rejection of objections impugned herein as well as the framing of best judgment assessment have been challenged in fresh CWP Nos. 29006 & 29007 of 2017. 4. In view of the above, learned counsel for the petitioner(s) states that he may be allowed to withdraw the present writ petition(s) with liberty to the petitioner(s) to pursue the matter in the aforesaid writ petitions. 5. Dismissed as withdrawn with liberty as prayed for. (AJAY KUMAR MITTAL) JUDGE December 19, 2017 J.Ram (AMIT RAWAL) JUDGE Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No Jawala Ram 2017.12.22 11:39 I attest to the accuracy and authenticity of this document Chandigarh

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