J D A V. COMMISSIONER OF INCOME TAX

CW/4075/2014

AI Insights

The case involves multiple writ petitions filed by the Jaipur Development Authority (JDA) against the Commissioner of Income Tax, Jaipur, challenging the Show Cause Notices issued under Section 263 of the Income Tax Act, 1961, for two assessment years. The primary contention was the withdrawal of the certificate under Section 12AA, which was later restored by the Appellate Tribunal. The Income Tax Department, while not pressing the Show Cause Notices at this stage, reserved the right to act if the Tribunal's decision is overturned or stayed.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 766543 (HC-JAIPUR)
• Appeal Type: Others
• Pronouncement Date: 27-10-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: SAMEER JAIN
• Assessee Lawyers: SANJAY JHANWAR
• Keywords: Appellate Tribunal; Exemption; Income Tax; Show cause notice; Withdrawal of Certificate
• Section: 263; 12AA

Judgement Text

"S.B. CIVIL WRIT PETITION NO.4075/2014 Jaipur Development Authority, Jaipur Vs. The Commissioner of Income Tax, Jaipur along with others 1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH, JAIPUR S.B. CIVIL WRIT PETITION NO.4075/2014 Jaipur Development Authority, Jaipur Vs. The Commissioner of Income Tax, Jaipur AND S.B. CIVIL WRIT PETITION NO.3977/2014 Jaipur Development Authority, Jaipur Vs. The Commissioner of Income Tax, Jaipur AND S.B. CIVIL WRIT PETITION NO.3340/2014 Jaipur Development Authority, Jaipur Vs. The Assistant Commissioner of Income Tax, Jaipur Date of Order : 27th October, 2014 HON'BLE MR. JUSTICE M.N.BHANDARI Mr.Sanjay Jhanwar, for the petitioner/s. Mr.Sameer Jain, for the respondent/s. By the Court: With the consent of learned counsel for the parties, these writ petitions are heard finally. S.B. CIVIL WRIT PETITION NO.4075/2014 Jaipur Development Authority, Jaipur Vs. The Commissioner of Income Tax, Jaipur along with others 2 The writ petition Nos.4075/2014 & 3977/2014 have been filed to challenge the Show Cause Notice under Section 263 of the Income Tax Act, 1961 (for short “Act of 1961”) for two assessment years. Learned counsel for the petitioner Authority submits that during pendency of the writ petitions, an appeal against withdrawal of certificate under Section 12 AA of the Act of 1961 has been decided favourable to the petitioner Authority, thus the Show Cause Notice deserves to be set aside as the petitioner Authority is now exempted from the Act of 1961. Learned counsel for the respondent/s submits that in view of the order passed by the Tribunal to issue certificate under Section 12AA of the Act of 1961, they would not press the impugned Show Cause Notice under Section 263 of the Act of 1961 at present but the Department is free to take decision to challenge the order passed by the Tribunal. In case of interim order or reversal of the order, they would be having authority to pursue the Show Cause Notice under Section 263 of the Act of 1961. In view of the aforesaid, while disposing of these writ petitions, necessary clarification may be made in regard to the S.B. CIVIL WRIT PETITION NO.4075/2014 Jaipur Development Authority, Jaipur Vs. The Commissioner of Income Tax, Jaipur along with others 3 rights of the Income Tax Department. I have considered the submissions made by learned counsel for the parties and perused the record. The JDA was having certificate under Section 12AA of the Act of 1961. The aforesaid certificate was withdrawn by the Department. A challenge to the withdrawal was made by the JDA before the Appellate Tribunal and remained successful. The certificate under Section 12AA of the Act of 1961 is ordered to be issued in favour of the petitioner Authority. In the background aforesaid, Show Cause Notice under Section 263 of the Act of 1961 cannot be given effect at this stage. It is, however, clarified that if the order passed by the Appellate Tribunal with the direction to issue certificate under Section 12AA of the Act of 1961 is reversed or stayed, the respondent/s would be at liberty to take appropriate proceedings in pursuance to the Show Cause Notice but till then, they will not press the impugned Show Cause Notice. The writ petition bearing Nos.4075/2014 & 3977/2014 are stands disposed of with the aforesaid. This disposes of the stay applications as well. S.B. CIVIL WRIT PETITION NO.4075/2014 Jaipur Development Authority, Jaipur Vs. The Commissioner of Income Tax, Jaipur along with others 4 The writ petition bearing SB Civil Writ Petition No.3340/2014 makes a challenge to the order dated 14 th March, 2014 whereby the stay prayed by the petitioner Authority was rejected with the direction to deposit the outstanding amount. It was on withdrawal of certificate under Section 12AA of the Act of 1961, however, the Appellate Tribunal has allowed the appeal preferred by the petitioner Authority with the direction for issuance of certificate under Section 12AA of the Act of 1961. In view of the above, the Demand Notice for the assessment year 2012-13 would not be given effect till the order of the Appellate Tribunal is reversed or stayed. In view of the above, the writ petition is disposed of with the clarification that the respondent/s would not press the Demand Notice for the assessment year 2012-13 till the order of Appellate Tribunal against withdrawal of the certificate under Section 12AA of the Act of 1961 is stayed or decided favourable to the Income Tax Department. The stay application is also disposed of accordingly. (M.N. BHANDARI), J. S/No.35 to 37 Preeti, P.A. All corrections made in the judgment/order have been incorporated in the S.B. CIVIL WRIT PETITION NO.4075/2014 Jaipur Development Authority, Jaipur Vs. The Commissioner of Income Tax, Jaipur along with others 5 judgment/order being emailed. Preeti Asopa P.A. "