HITAISHI K K MANUFACTURING CO PVT LTD vs. UNION OF INDIA AND ORS

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WPO/2314/2022HC CalcuttaWBCHCO003979202218 July 2022Bench: HON'BLE JUSTICE MD. NIZAMUDDIN3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that it would not be proper for the Writ Court to delve into the merits of the assessment orders, as appeals against them were already pending before the CIT (Appeals). The Court directed the assessing officer to dispose of the petitioner's applications filed under Section 220(6) of the Income Tax Act, 1961, in accordance with the law, by passing a reasoned and speaking order within three weeks from the date of the order. The Court clarified that it had not examined the merits of the Section 220(6) applications and that the assessing officer should act strictly according to law. The Court also expressed an expectation that the pending appeals before the CIT (Appeals) would be disposed of expeditiously. The writ petition was disposed of with these observations and directions.

What were the facts?

The petitioner, Hitaishi K K Manufacturing Co Pvt Ltd, filed a writ petition challenging demand notices for assessment years 2015-16 and 2016-17, which were based on assessment orders. The petitioner had already filed appeals against these assessment orders before the CIT (Appeals). The petitioner also filed applications under Section 220(6) of the Income Tax Act, 1961, before the assessing officer on April 26, 2022, seeking to stay the demand. The High Court noted that the appeals against the assessment orders were pending and that it would not be proper for the Writ Court to decide on the merits of those orders.

What were the issues?

1. Whether the Writ Court should interfere with demand notices arising from assessment orders when appeals against those orders are pending before the CIT (Appeals)? (Question of law and fact, concerning the jurisdiction of the Writ Court and the efficacy of alternative remedies). Assessee's Contention: The petitioner challenged the demand notices, implying a grievance with their validity, which stems from the assessment orders. The filing of appeals suggests the assessee is pursuing the statutory remedy. Revenue's Contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 220(6)

AI-generated summary — verify with the full judgment below

OD-3 W.P.O. No. 2314 of 2022 IN THE HIGH COURT AT CALCUTTA Constitutional Writ Jurisdiction Original Side HITAISHI K K MANUFACTURING CO PVT LTD Vs. UNION OF INDIA AND ORS. BEFORE : The Hon’ble JUSTICE MD. NIZAMUDDIN Date : 18th July, 2022. Ms. Asha G. Gutgutia, Mr. N.P. Jain, Ms. Paromita Sankar Ghosh, Advs. …for the petitioner Mr. Om Narayan Rai, Adv. …for the respondents The Court : Heard learned advocates appearing for the parties. By this writ petition, petitioner has challenged the impugned demand notices relating to assessment years 2015-16 and 2016-17 raised on the basis of assessment orders. It appears from record that the petitioner has already filed appeals against the aforesaid assessment orders in question and legality and validity of the said assessment orders are subject matter of pending appeal before the CIT (Appeals) and as such when the petitioner has already filed appeals challenging the aforesaid assessment orders on the basis of which impugned demand has arisen, it will not be proper on the part of the Writ Court to go into the merits of the aforesaid assessment orders.

2 So far as question of interfering with the demand in question arising out of the impugned assessment orders are concerned, petitioner has already filed an application under Section 220(6) of the Income Tax Act, 1961 as appears at pages 58 and 63 of the writ petition filed on 26th April, 2022 before the assessing officer concerned, that shall be disposed of by the assessing officer concerned in accordance with law and by passing a reasoned and speaking order within three weeks from date. It is clarified that this Court has not gone into the merit of the aforesaid application under Section 220(6) of the Act and the assessing officer concerned while considering those application will act strictly in accordance with law and on merit of the said application. It is expected that pending appeals before the CIT (Appeals) will be disposed of expeditiously. With these observations and directions, this writ petition Being WPO 2314 of 2022 stands disposed of. (Md. Nizamuddin, J.) TR/

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