M/S SUMEET GEMS AND JEWELLERS PRIVATE LIMITED V. UNION OF INDIA

WPT/142/2023

AI Insights

M/s Sumeet Gems And Jewellers Private Limited filed multiple writ petitions challenging the notices issued by the Income Tax Department under various sections of the Income Tax Act, related to the assessment year 2016-17. These notices were based on findings from a search and seizure operation conducted on 17.12.2015. The petitioner had previously reached a settlement with the Income Tax Settlement Commission, which seemed to cover the issues raised in the notices. However, the Income Tax Department later issued the notices, prompting the petitioner to challenge them in court. The Department subsequently withdrew the notices, leading to the disposal of the petitions by the High Court.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 734275 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 05-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AMIT CHAUDHARI
• Assessee Lawyers: ABHISHEK SINHA; APURV GOYAL
• Keywords: Assessment Year 2016-17; Income Tax; Notice Withdrawal; Search and seizure; Settlement commission
• Section: 147; 148; 245D(4); 148A; 132(4); 226; 245D(7); 245D(6)

Judgement Text

"Page 1 of 4 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 140 of 2023 M/s Sumeet Gems And Jewellers Private Limited A Company Within The Meaning Of The Companies Act, 2013, Through Its Authorized Signatory And Director Shri Ankit Kankariya S/o Shri Ashok Kumar Kankariya, Aged About 33 Years, Having Its Registered Office At Tahir Plaza, Malviya Road, Raipur, Chhattisgarh 492001. ---- Petitioner Versus 1. Union Of India Through The Secretary, Ministry Of Finance, Department Of Revenue, Having His Office At The Central Secretariat, North Block, New Delhi- 110001. 2. Central Board Of Direct Taxes Having Its Office At The North Block, Secretariat Building, New Delhi- 110002. 3. Deputy Commissioner Of Income Tax Circle-1(1) Raipur, Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh- 492001 4. Principal Commissioner Of Income Tax-1 Raipur, Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh- 492001. 5. Principal Chief Commissioner Of Income Tax Madhya Pradesh And Chhattisgarh, Having His Office At Aaykar Bhawan, Hoshangabad Road, Arera Colony, Bhopal Madhya Pradesh 462026. ---- Respondents WPT No. 142 of 2023 M/s Sumeet Gems And Jewellers Private Limited A Company Within The Meaning Of The Companies Act, 2013, Through Its Authorized Signatory And Director Shri Ankit Kankariya S/o Shri Ashok Kumar Kankariya, Aged About 33 Years, Having Its Registered Office At Tahir Plaza, Malviya Road, Raipur, Chhattisgarh 492001. ---- Petitioner Versus 1. Union Of India Through The Secretary, Ministry Of Finance, Department Of Revenue, Having His Office At The Central Secretariat, North Block, New Delhi- 110001. 2. Central Board Of Direct Taxes Having Its Office At The North Block, Secretariat Building, New Delhi- 110002. 3. Deputy Commissioner Of Income Tax Circle-1(1) Raipur, Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh- 492001 4. Principal Commissioner Of Income Tax-1 Raipur, Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Page 2 of 4 Chhattisgarh- 492001. 5. Chief Commissioner Of Income Tax Chhattisgarh, Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh 4920001 6. Principal Chief Commissioner Of Income Tax Madhya Pradesh And Chhattisgarh, Having His Office At Aaykar Bhawan, Hoshangabad Road, Aaykar Bhawan, Hoshangabad Road, Arera Colony, Bhopal, Madhya Pradesh 462026. ---- Respondents WPT No. 144 of 2023 M/s Sumeet Gems And Jewellers Private Limited A Company Within The Meaning Of The Companies Act, 2013, Through Its Authorized Signatory And Director Shri Ankit Kankariya S/o Shri Ashok Kumar Kankariya, Aged About 33 Years, Having Its Registered Office At Tahir Plaza, Malviya Road, Raipur, Chhattisgarh- 492001 ---- Petitioner Versus 1. Union Of India Through The Secretary, Ministry Of Finance, Department Of Revenue, Having His Office At The Central Secretariat, North Block, New Delhi-110001. 2. Central Board Of Direct Taxes Having Its Office At The North Block, Secretariat Building, New Delhi - 110002 3. Deputy Commissioner Of Income Tax-1 Circle-1(1) Raipur, Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh-492001 4. Principal Commissioner Of Income Tax -1 Raipur, Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh-492001 5. Chief Commissioner Of Income Tax, Chhattisgarh Having His Office At Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh-492001 6. Principal Chief Commissioner Of Income Tax Madhya Pradesh And Chhattisgarh, Having His Office At Aayakar Bhawan, Hoshangabad Road, Arera Colony, Bhopal, Madhya Pradesh - 462026 ---- Respondents For Petitioner : Mr. Abhishek Sinha, Senior Advocate with Mr. Apurv Goyal, Advocate For Respondent 3 to 5 : Mr. Amit Chaudhari, Advocate Hon'ble Shri Justice Narendra Kumar Vyas Order on Board Page 3 of 4 05.12.2023 1. The petitioner has filed present petition under Article 226 of Constitution of India challenging the initiation of proceedings under Section 147, 148 and 148A of the Income Tax Act for assessment year 2016-17, notice dated 30.06.2021, communication dated 23.05.2022, order dated 15.07.2022 issued under Section 148A(d) and notice dated 18.07.2022 under Section 148 of Income Tax Act. 2. The brief facts as reflected from the record is that there was a search and seizure operations conducted on 17.12.2015 and on subsequent dates, the statements were recorded under Section 132(4) of the Income Tax Act. Thereafter the proceedings were drawn for assessment of tax. The petitioner has moved an application under Section 245D(4) of the Income Tax Act before the Income Tax Settlement Commissioner (IT&WT) Kolkata. The Settlement Commissioner vide its order dated 16.01.2019 has passed the final terms of settlement. Thereafter, respondent No. 3 & 4/Income Tax Department have issued notices on 30.06.201 (Annexure - P/3), Notice dated 23.05.2022 (Annexure - P/4), Notice dated 15.07.2022 and 18.07.2022 (Annexure - P/6). These notices have been assailed by the petitioner in the present writ petition. 3. The petitioner in other Writ Petition (T) no. 142/2023 has also assailed the notices issued to the petitioner - M/s. Sumit Jems and Jewellers Private Limited and in WP(T) No. 144/2023 M/s. Sumit Jems and Jewellers Private Limited have assailed the similar notices. 4. The learned counsel for the respondent Income Tax Mr. Amit Chaudhari has filed communication dated 06.11.2023 which reads as under:- “(i) Enclosed please find an application received from DCIT-1(1), Raipur u/s - 245(D)(6) r.w.s. 245(7) of the Income Tax Act, 1961 for recall of order dated 15.01.2019 passed by the Hon’ble Income Tax Settlement Commission (ITSC) in the case of Sumeet Page 4 of 4 Gems & Jewellers for the Asstt. Year 2014-15. The same is sent herewith for vetting. (ii) It is pertinent to mention here that, the issue in respect of initiation of proceedings u/s - 147 of the Income Tax Act, 1961 is based on new findings. Now since the assessee pleaded that re-opening proceedings can’t be initiated afresh, the respective Asstt. Year were already covered under the order of Hon’ble ITSC vide order dated 15.01.2019. In order to address the plea of the assessee, a parallel petition is being filed with the Hon’ble ITSC to recall its order and decide the issues accordingly.” 5. He would further submit that after the order passed by the Settlement Commissioner, they have withdrawn the notices, however, they are in process of filing an application under Section 245D(6) read with Section 245D(7) of the Income Tax Act before the Interim Board of Settlement, Kolkata on the grounds mentioned in the application. 6. In view of the recalling of the notice vide memo dated 06.11.2023 issued by the Principal Commissioner, Income Tax, Raipur, nothing is required to adjudicated in the present writ petition as the withdrawal memo itself clearly demonstrates that the department has decided not to proceed further in the notices issued to the petitioner which are under challenged before this Court. 7. Since, the respondent Income Tax Department has already taken decision to withdraw the notices issued to the assessee/petitioner in WP(T) No. 142/2023 and WP(T) No. 144/2023 nothing is required to adjudicated in these petitions also. 8. Accordingly, these three petitions are disposed of. Sd/- (Narendra Kumar Vyas) Judge Manish "