Chitta Farms Pvt. Ltd V. Assistant Commissioner of Income Tax and Another

WP/28300/2009

AI Insights

The case involves multiple writ petitions filed by various assessees, including Chitta Farms Pvt. Ltd, against notices issued by the Assistant Commissioner of Income Tax under Section 148 of the Income Tax Act, 1961, for re-assessment of income for the assessment year 2002-2003. The petitioners challenged the notices alleging that the income chargeable to tax had escaped assessment. The High Court of Andhra Pradesh admitted the petitions and passed interim orders. Subsequently, it was noted that the petitioners had filed their replies and that assessment orders had been passed, which were being appealed before the Commissioner of Income Tax (Appeals), Hyderabad. Consequently, the court dismissed the writ petitions as infructuous, allowing the petitioners to continue with their appeals.

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 805324 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 02-02-2011
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Keywords: Assessment Order; Income Tax; Re-assessment; Writ petition; Escape of Income Chargeable to Tax
• Section: 147; 148; 143(3); 246

Judgement Text

" THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION Nos. 28300, 28302, 28493, 28498, 28499, 28500, 28501, 28502, 28503, 28504, 28505, 28506, 28507, 28508, 28509, 28514, 28525, 28528, 28533, 28537, 28538, 28539, 28540, 28548, 28549, 28595, 28633, 28641, 29076, 29308, 29320, 29333, 29338, 29341, 29343, 29346, 29347, 29352, 29354, 29357, 29361, 29369, 29372, 29375, 29385, 29402, 29403, 29415, 29423, 29424, 29427, 29428, 29430, 29431, 29437, 29438, 29439 and 29440 of 2009. Dated:02.02.2011 Between: Chitta Farms Pvt.Ltd, And others. …Petitioners and Assistant Commissioner of Income Tax & Another. …Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION Nos. 28300, 28302, 28493, 28498, 28499, 28500, 28501, 28502, 28503, 28504, 28505, 28506, 28507, 28508, 28509, 28514, 28525, 28528, 28533, 28537, 28538, 28539, 28540, 28548, 28549, 28595, 28633, 28641, 29076, 29308, 29320, 29333, 29338, 29341, 29343, 29346, 29347, 29352, 29354, 29357, 29361, 29369, 29372, 29375, 29385, 29402, 29403, 29415, 29423, 29424, 29427, 29428, 29430, 29431, 29437, 29438, 29439 and 29440 of 2009. COMMON ORDER: (per Hon’ble Sri Justice V.V.S.Rao) In these writ petitions, the petitioners are assessees on the file of the first respondent. They filed their income tax returns for the assessment year 2002-2003. Nevertheless the second respondent, purporting to exercise power under Section 147 of the Income Tax Act, 1961 (the Act), issued a notice under Section 148 thereof proposing to undertake re-assessment on the allegation that the income chargeable to tax had escaped assessment within the meaning of Section 147 of the Act. Being aggrieved by these notices, various assessees filed these writ petitions. This Court admitted all the cases and passed interim orders on condition of payment of 50% of the tax with a default clause. When these writ petitions were listed before this Bench on 29.01.2011 it was brought to the notice of this Court that, after receiving the impugned notices under Section 148 of the Act, all the petitioners had filed their replies enclosing copies of the returns for the assessment year 2002- 2003 raising objections for re-assessment. Today it is also brought to our notice that in all these matters assessment orders were passed under Section 147 read with Section 143(3) of the Act and that they have already preferred appeals under Section 246 of the Act to the Commissioner of Income Tax (Appeals), Hyderabad. To that effect, a statement is also filed. As assessment orders have already been filed, and the petitioners already availed the effective statutory remedy available under the Act, it would not be proper for us to express any opinion on the merits of the case either in relation to the exercise of jurisdiction under Section 147 or Section 143(3) of the Act. We leave open all the issues raised in these cases which can also be raised along with the grounds of appeal before the Commissioner of Income Tax (Appeals), Hyderabad. In view of the above, these writ petitions are dismissed as infructuous giving liberty to the petitioners to raise all grounds available under law before the appellate authority, if the appeals are still pending. There shall be no order as to costs. _______________ (V.V.S.RAO, J) _____________________________ (RAMESH RANGANATHAN, J) 02.02.2011 vs "