Lal Bahadur Singh V. Union Of India Through The Commissioner Of Income Tax And Ors

WPC/3229/2016

AI Insights

The case involves two petitioners, Lal Bahadur Singh and Kumbh Nath Singh, who challenged a notice under Section 154 of the Income Tax Act, issued by the Joint Commissioner of Income Tax, Central Circle, Dhanbad. The notice was for rectification of an earlier order dated 20.04.2016, which had determined that interest under Sections 234-A and 234-B of the Income Tax Act was not leviable due to sufficient funds in the petitioners' personal deposit accounts. The petitioners argued against the rectification notice, but the court decided not to intervene at this stage, emphasizing that the matter should be resolved by the Income Tax authority based on the merits and evidence presented.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 674095 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 25-01-2017
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: DEEPAK ROSHAN
• Assessee Lawyers: SUMEET GADODIA
• Keywords: Income Tax; Interest; Notice; Rectification; Personal Deposit Account
• Section: 154; 234 A; 234 B; 132(B)

Judgement Text

"IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(T) No. 3229 of 2016 Lal Bahadur Singh, son of Shri Ram Deo Singh, resident of House No. 193, Simla Bahal Colliery, Adarsh Nagar, PO and PS Jharia, District Dhanbad, PIN 828111 (Jharkhand). ..Petitioner Versus 1. Union of India, through the Commissioner of Income Tax, Dhanbad Circle, Aayakar Bhawan, Luby Circular Road, PO and PS Bank More, Dhanbad, District Dhanbad (Jharkhand); 2. Joint Commissioner of Income Tax, Central Circle, Aayakar Bhawan, Luby Circular Road, PO and PS Bank More, Dhanbad, District Dhanbad (Jharkhand); 3. Deputy Commissioner of Income Tax, Central Circle, Aayakar Bhawan, 3rd floor, Luby Circular Road, PO and PS Bank More, Dhanbad, District Dhanbad (Jharkhand). ..Respondents With W.P.(T) No. 3231 of 2016 Kumbh Nath Singh, son of Shri Ram Deo Singh, resident of Simla Bahal Colliery, Adarsh Nagar, PO and PS Jharia, District Dhanbad, PIN 828111 (Jharkhand). ..Petitioner Versus 1. Union of India, through the Commissioner of Income Tax, Dhanbad Circle, Aayakar Bhawan, Luby Circular Road, PO and PS Bank More, Dhanbad, District Dhanbad (Jharkhand); 2. Joint Commissioner of Income Tax, Central Circle, Aayakar Bhawan, Luby Circular Road, PO and PS Bank More, Dhanbad, District Dhanbad (Jharkhand); 3. Deputy Commissioner of Income Tax, Central Circle, Aayakar Bhawan, 3rd floor, Luby Circular Road, PO and PS Bank More, Dhanbad, District Dhanbad (Jharkhand). ..Respondents --- CORAM: HON'BLE MR. JUSTICE D.N. PATEL HON'BLE MR. JUSTICE RATNAKER BHENGRA ---- For the Petitioner : Mr. Sumeet Gadodia, Advocate. For the Resondents : Mr. Deepak Roshan, Advocate. -- 07/Dated 25.01.2017: Oral Order: Per D.N. Patel, J.: 1. Counsel for the petitioners has argued out the case at length, challenging Annexure-7, which is a notice under Section 154 of the Income Tax Act, for rectification of the order dated 20.04.2016, whereby, it was held that interest under Sections 234-A and 234-B of the Income Tax Act is not leviable because sufficient amount was lying in the personal deposit account of these petitioners. 2. Having heard counsel for both the sides and looking to the explanation under Section 132-B of the Income Tax Act and the order -2- dated 20.04.2016 to be read with other provisions of the Income Tax Act and also looking to the fact that notice, issued by the Joint Commissioner of Income Tax, Central Circle, Dhanbad, dated 09.06.2016, is under challenge, we see no reason to entertain these writ petitions, at this stage. 3. Notice, issued by the Joint Commissioner of Income Tax, Central Circle, Dhanbad dated 09.06.2016 for rectification under Section 154 of the Income Tax Act, for the Assessment Year 2013-14, shall be decided on its own merit and on the basis of the evidences on record and without being influenced by the affidavit filed in these writ petitions by the respondents-Income Tax Department. Independent decision will be taken by the said authority. Petitioner is at liberty to raise all the issues, including power, jurisdiction and authority as well as the scope under Section 154 of the Income Tax Act, for rectification of earlier order dated 20.04.2016, which is at Annxure-5 to the memo of these writ petitions. 4. With these observations, both the writ petitions are disposed of. 5. The Joint Commissioner of Income Tax, Central Circle, Dhanbad will decide the said notice, which is at Annexure-7, dated 09.06.2016, as early as possible and practicable. ( D.N. Patel,J.) ( Ratnaker Bhengra,J.) N.A.F.R. Sharda/S.B. "