Abhiaya Marketing Private Limited V. The Deputy/Assistant Commissioner of Income Tax Central Circle-3 and The Additional/ Joint Commissioner of Income Tax Central Range

CWJC/18760/2021

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The case involves Abhiaya Marketing Private Limited, which challenged the notices and orders issued by the Income Tax authorities under sections 148, 143(2), and 142(1) of the Income Tax Act, 1961, for the assessment year 2017-18. The petitioner argued that the initiation of reassessment proceedings was based on mere change of opinion and that the subsequent orders were cryptic, non-speaking, and did not consider the objections raised by the petitioner. The High Court found merit in the petitioner's arguments, leading to the quashing of the impugned order and remitting the matter for a fresh decision.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 795508 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 15-11-2021
• Assessment Year: misc
• Other Referred Cases: GKN Driveshaft (India) vs ITO and Others (2003) 259 ITR 19
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ARCHANA SINHA; SANJEEV KUMAR
• Assessee Lawyers: AJAY RASTOGI; SUSHIL SINGH; PARIJAT SAURAV
• Keywords: Cryptic order; Jurisdiction; Natural Justice; Non-speaking order; Quashing notice; Reassessment; Writ of Certiorari
• Section: 147; 148; 142(1); 143(2)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.18760 of 2021 ====================================================== Abhiaya Marketing Private Limited, a Limited Company incorporated under the Companies Act, 1956, having its office at 2nd Floor, Awadhraj Centre, Mitra Compound, Boring Canal Road, Patna, P.O.- GPO, P.S.- Buddha Colony in the Town and District of Patna through its Director, Joydeep Mukherjee, aged about 55 years, Male, Son of Late Gour Hari Mukherjee, resident of Flat No. 102, Mukherjee Enclave, Road No. 40, Anisabad, Patna- 800002, P.O.- Anisabad and P.S.- Gardanibagh, District- Patna. ... ... Petitioner/s Versus 1. The Deputy/Assistant Commissioner of Income Tax Central Circle-3, 6th Floor, Central Revenue Building (Annexe), Beer Chand Patel Marg, Patna- 800001. 2. The Additional/ Joint Commissioner of Income Tax Central Range, 6th Floor, Central Revenue Building (Annexe), Beer Chand Patel Marg, Patna- 800001. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Ajay Kumar Rastogi, Sr. Advocate Mr. Sushil Kumar Singh, Advocate Mr. Parijat Saurav, Advocate For the Respondent/s : Mrs. Archana Sinha, Sr. Standing Counsel Mr. Sanjeev Kumar, Jr. Standing Counsel ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE MR. JUSTICE S. KUMAR) Date : 15-11-2021 Heard learned counsel for the parties. Petitioner has prayed for the following relief(s):- “For issuance of writ of certiorari or any other appropriate writ quashing the Notice under section 148 of the Income Tax Act, 1961 (\"the Act\") dated 31.03.2021, for assessment year 2017-18 issued by the Assistant Commissioner of Income Tax, Central Patna High Court CWJC No.18760 of 2021 dt.15-11-2021 2/5 Circle-3, Patna (Respondent No.1) herein and also referred to as the \"Assessing Officer\" hereinafter) initiating proceedings for reassessment against the Petitioner as being wholly illegal and without jurisdiction as the same has been initiated on mere change of opinion. ii) For issuance of an appropriate writ quashing the preliminary order dated 18.08.2021 passed in pursuance of the said Notice by Respondent No.1 whereby the petitioner's objection on the issue of assumption of jurisdiction has been rejected by a non-speaking and cryptic order passed only as a formal observance of the procedure laid down by the Hon'ble Supreme Court in the case of GKN Driveshaft (India) vs ITO and Others reported in (2003) 259 ITR 19. iii) For issuance of an appropriate writ quashing the notices under section 143(2) and 142(1) dated 18.08.2021 by which the petitioner has been directed to furnish certain details along with connected documents as the same is erroneous and without any basis. (iv) For issuance of any other writ, order or direction which your Lordships may deem fit and proper in the facts and circumstances of the case.” It is submitted on behalf of the petitioner that petitioner’s objection to the initiation of proceedings under Section 147 of the Income Tax Act, 1961 for the Assessment Years 2013-14, 2016-17 Patna High Court CWJC No.18760 of 2021 dt.15-11-2021 3/5 and 2017-18 has been rejected vide order dated 18th of August, 2021 passed by Respondent No. 1, namely the Deputy/Assistant Commissioner of Income Tax, Central Circle-3, 6th Floor, Central Revenue Building (Annexe), Beer Chand Patel Marg, Patna- 800 001 (Annexure-2). It is further submitted on behalf of the petitioner that the impugned order is a cryptic and non-speaking. No reason has been assigned on basis of which impugned order has been passed. There is no consideration of objection raised by the petitioner against initiation of proceeding. The order does not disclose the application of mind by the authority who has passed the order. As such, we dispose of the present petition in the following terms:- (a) We quash and set aside the impugned order dated 18th of August, 2021 passed by Respondent No. 1, namely the Deputy/Assistant Commissioner of Income Tax, Central Circle-3, 6th Floor, Central Revenue Building (Annexe), Beer Chand Patel Marg, Patna- 800 001 (Annexure-2); (b) Matter is remitted to the Assessing Authority; (c) The Assessing Authority shall pass a fresh order, dealing with the objections of the petitioner for initiation of proceedings under Section 147 of the Income Tax Act, 1961; Patna High Court CWJC No.18760 of 2021 dt.15-11-2021 4/5 (d) The Assessing Authority shall consider the written objection filed by the petitioner and thereafter pass a reasoned and speaking order, of course after complying with the principles of natural justice, and in accordance with law; (e) Petitioner undertakes to appear before the Assessing Authority on 29th of November, 2021 at 10:30 A.M.; (f) Opportunity of hearing shall be afforded to the parties to place on record all essential documents and materials, if so required and desired; (g) During pendency of the case, no coercive steps shall be taken against the petitioner. (h) The Assessing Authority shall pass a fresh order only after affording adequate opportunity to all concerned, including the writ petitioner; (i) Petitioner through learned counsel undertakes to fully cooperate in such proceedings and not take unnecessary adjournment; (j) The Assessing Authority shall decide the case on merits expeditiously, preferably within a period of two months from the date of appearance of the petitioner; (k) The Assessing Authority shall pass a speaking Patna High Court CWJC No.18760 of 2021 dt.15-11-2021 5/5 order assigning reasons, copy whereof shall be supplied to the parties; (l) Liberty reserved to the petitioner to challenge the order, if required and desired; The instant petition sands disposed of in the aforesaid terms. Interlocutory Application(s), if any, also stands disposed of. Learned counsel for the respondents undertakes to communicate the order to the appropriate authority through electronic mode. veena/PKP- (Sanjay Karol, CJ) ( S. Kumar, J) AFR/NAFR NAFR CAV DATE NA Uploading Date Transmission Date NA "