CL PRODUCTS INDIA LIMITED V. INCOME TAX OFFICER WARD 5 1 DELHI & ORS.

W.P.(C)/12123/2022

AI Insights

The case involves CL Products India Limited, the petitioner, challenging a show cause notice and subsequent orders issued by the Income Tax Officer under various sections of the Income Tax Act, 1961, for the Assessment Year 2013-14. The petitioner argued that the show cause notice was issued with insufficient time to respond and to an outdated email address. Additionally, there was a dispute over the jurisdiction following a transfer of jurisdiction order that was stayed by the court. The court found that the initial Assessing Officer in Delhi retained jurisdiction and that the petitioner was not given adequate time to respond to the show cause notice, leading to the setting aside of the impugned order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 679663 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 26-08-2022
• Assessment Year: misc
• Other Referred Cases: W.P.(C) 4703/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ZOHEB HOSSAIN; VIPUL AGRAWAL; PARTH SEMWAL
• Assessee Lawyers: SAHIL MAHAJAN; ABHIMANYU GOEL
• Keywords: Assessment Year; Income Tax; Jurisdiction transfer; Show cause notice
• Section: 148; 148A(b); 148A(d); 127

Judgement Text

"W.P.(C) 12123/2022 Page 1 of 3 $~8 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 12123/2022, CM APPL. 36240-41/2022 CL PRODUCTS INDIA LIMITED ..... Petitioner Through: Mr. Sahil Mahajan & Mr. Abhimanyu Goel, Advocates. versus INCOME TAX OFFICER WARD 5 1 DELHI & ORS. ..... Respondents Through: Mr. Zoheb Hossain, Sr. Standing Counsel for Revenue, Mr. Vipul Agrawal & Mr. Parth Semwal, Jr. Standing Counsels for Revenue. % Date of Decision: 26th August, 2022 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J (Oral): CM APPL. 36241/2022 (exemption) Exemptions allowed, subject to all just exceptions. Accordingly, these applications stand disposed of. W.P.(C) 12123/2022 & CM APPL. 36240/2022 (for interim relief) 1. Present writ petition has been filed challenging the show cause notice dated 22nd July, 2022 issued under Section 148A(b) of the Income Tax Act, 1961 [‘the Act’] as well as the order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act both dated 30th July, This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/003307 W.P.(C) 12123/2022 Page 2 of 3 2022 for the Assessment Year 2013 - 14. 2. Learned counsel for the Petitioner states that show cause notice had been issued to the Petitioner on 22nd July, 2022 and only three days’ time was given to the Petitioner to file reply. He also states that the information had been sent to the Petitioner on the email ID [e-mail] despite being fully aware that the same was not being used by the Petitioner anymore. 3. Learned counsel for the Petitioner states that the Petitioner had approached this Court in W.P.(C) 4703/2022 challenging an order dated 1st January, 2021 passed under Section 127 of the Act transferring the jurisdiction of the Petitioner from Delhi to Jammu without issuing the required notice. He states that this Court vide order dated 31st May, 2022 has granted a stay on the operation on the impugned order passed under Section 127 of the Act. He states that since the Petitioner has challenged the transfer of jurisdiction of the Petitioner, it is not clear which State has jurisdiction over the assessment of the Petitioner. He further states that despite this, the Respondents have issued various notices to the Petitioner without giving it adequate time to respond. 4. This Court is of the view that in law there cannot be a vaccum. As the order transferring jurisdiction under Section 127 of the Act has been stayed by this Court, the initial Assessing Officer in Delhi will continue to exercise the jurisdiction over the Petitioner/Assessee. Consequently, the show cause notice issued under Section 148A(b) of the Act and the impugned order issued by the Assessing Officer are within jurisdiction. However, as the Petitioner has been given only three days’ time to file reply to the show cause notice instead of minimum notice of seven days as stipulated under This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/003307 W.P.(C) 12123/2022 Page 3 of 3 Section 148A(b) of the Act, the impugned order dated 30th July, 2022 is set aside.Accordingly, the Petitioner is directed to file a reply to the show cause notice issued under Section 148A(b) of the Act within two weeks and the Assessing Officer is directed to decide the matter afresh in accordance with law within six weeks thereafter. 5. With the aforesaid directions, present writ petition along with pending application stands disposed of. It is clarified that the rights and contentions of all the parties are left open. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J AUGUST 26, 2022/msh This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/003307 "