JHARKHAND STATE FOOD AND CIVIL SUPPLIES CORPORATION LIMITED THROUGH SHRI YATINDRA PRASAD V. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX BIHAR AND JHARKHAND

WPC/2158/2022

AI Insights

The case involves the Jharkhand State Food and Civil Supplies Corporation Limited, a government undertaking, which filed a writ petition against various income tax authorities challenging an assessment order and demand notice for the assessment year 2013-14. The petitioner sought quashing of the assessment order, a refund of tax deducted at source, and expedited handling of their pending appeal by the Commissioner of Income Tax (Appeals). The primary contention was regarding the alleged illegal and arbitrary nature of the assessment order issued by the National Faceless Assessment Centre, which demanded a substantial tax payment. The court did not address the substantive issues of the assessment order but focused on the procedural aspect of expediting the appeal process.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 760595 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 12-10-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: RATNESH SAHAY
• Assessee Lawyers: N K PASARI SIDHI JALAN NAVEEN TOPPO ADVOCATE
• Keywords: Appeal; Assessment Order; Income Tax; National Faceless Assessment Centre; Refund; Stay Application; Tax deduction at source
• Section: 246

Judgement Text

" IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(T) No. 2158 of 2022 Jharkhand State Food and Civil Supplies Corporation Limited, Govt. of Jharkhand Undertaking through its Managing Director namely Shri Yatindra Prasad having its registered office at Kadru, Main Road, Ranchi --- --- Petitioner Versus 1.Principal Chief Commissioner of Income Tax (Bihar & Jharkhand), Patna, Bihar 2.Principal Commissioner of Income Tax, Ranchi 3.Shri Vishesh Prakash, Assessing Officer, National Faceless Assessment Centre, North Block, New Delhi 4.The Deputy Commissioner of Income Tax, Circle 1, Ranchi 5.Commissioner of Income Tax (Appeals), Bihar & Jharkhand, Bailey Road, Patna, Bihar 6.The Central Board of Direct Taxes, New Delhi --- --- Respondents ….... CORAM: HON’BLE MR. JUSTICE APARESH KUMAR SINGH HON’BLE MR. JUSTICE DEEPAK ROSHAN For the Petitioner : M/s N.K. Pasari, Sidhi Jalan, Naveen Toppo, Advocate For the Respondents : Mr. Ratnesh Nandan Sahay, Sr. S.C. 05/12.10.2022 Surviving defects are ignored on the submission of learned counsel for the petitioner. 2. The writ petition has been preferred for the following reliefs: a) For quashing and setting aside the Assessment Order bearing number ITBA/AST/S/147/2021-22/1042118590(1) dated 30.03.2022 of National Faceless Assessment Centre, New Delhi dated 30.03.2022 (Annexure-1) issued by the Assessing Officer, National Faceless assessment Centre, New Delhi, Respondent No. 3), whereby and where under the said Respondent in a quite illegal, arbitrary and malafide manner, passed Assessment Order disregarding the Petitioner’s Objection to his draft Assessment Order dated 17.03.2022 and directing the Petitioner to make payment of alleged demand of Rs.232,05,47,520/- pertaining the assessment Year 2013-14 within 30 days from the date of receipt of the said demand notice, failing which, necessary action as per provisions of law, shall be taken against the Petitioner, despite the fact that appeal (Annexure-3 series) against the said assessment order has been filed are still pending with the first appellate authority (Respondent No. 5). b) For a direction upon the Respondents to immediately refund an amount of Rs. 31,30, 954/- to the Petitioner, representing deduction of tax at source as specified in 26AS. (Annexure-1 Series) issued for the Assessment Year 2013-14. c) For a direction upon the Commissioner of Income tax (Appeals), Bihar & Jharkhand Patna ( Respondent No. 5) to forthwith hear and dispose of the appeal filed by the petitioner on 04.04.2019 and 02.04.2022 (Annexure-3 Series) under Section 246 of the Income Tax Act, 1961, against the Assessment Order and the demand notice issued for the said Assessment Year 2013-14. d) For a direction to Respondent No. 6 (Central Board of Direct Taxes) to modify its circular bearing number dated 29.02.2016 and amendment dated 31.07.2017 wherein it (CBDT) has specified payment of minimum 20% of the disputed tax demand even in cases where that the tax so demanded may be illegal, imaginary, whimsical and concocted from the mind of Assessing -2- Officer, National Faceless Assessment Centre. 3. However, at this stage, learned counsel for the petitioner does not press the prayer made in para 1 (a), (b) and (d). He only prays that the writ petition may be disposed of with a direction to the Appellate Authority i.e., Commissioner of Income Tax (Appeals), Bihar & Jharkhand, Patna, Bihar (Respondent no. 5) to dispose of the appeal preferred by the petitioner on 04.04.2019 and 02.04.2022 under Section 246 of the Income Tax Act, 1961 against the assessment order and the demand notice concerning assessment year 2013-14 expeditiously within a time frame. He submits that petitioner is a State Undertaking, whose finances are primarily meant for procurement of food grains for onwards supply chain to the beneficiaries through Public Distribution System. Petitioner has already moved the Assessing Officer for stay vide Annexure-4 on 02.04.2022 since the pre-deposit also involves substantial amount. The stay petition may also be considered in an expeditious manner. 4. Learned counsel Mr. Ratnesh Nandan Sahay, Sr. Standing Counsel for the Revenue does not have any objection to the limited prayer made by the petitioner for consideration and disposal of the pending appeal of the petitioner assessee. 5. In that view of the matter, without getting into merits of the challenge and without expressing any opinion as regards the issues raised herein, the writ petition is disposed of simplicitor with a direction to the Appellate Authority/ Commissioner of Income Tax (Appeals), Bihar & Jharkhand, Patna, Bihar (Respondent no.5) to hear and decide the pending appeals preferred by the petitioner as expeditiously as possible, preferably within a period of 3 months from the date of receipt of the copy of this order. Needless to say, the Assessing Officer would also take a decision on the stay application of the petitioner after granting an opportunity to him in an expeditious manner. 6. The writ petition is disposed of. (Aparesh Kumar Singh, J.) (Deepak Roshan, J.) A.Mohanty "