M/S NAGINDAS KASTURCHAND AND BROS. V. PRINCIPAL COMMISSIONER OF INCOME TAX 3, AHMEDABAD

SCA/16651/2021

AI Insights

The case involves M/s Nagindas Kasturchand and Bros., the petitioner, challenging an order dated 8.7.2021 under section 127(2) of the Income Tax Act, 1961, passed by the Principal Commissioner of Income Tax 3, Ahmedabad, the respondent. This order was previously challenged and quashed in a related case (Special Civil Application No. 16529 of 2021) by the same petitioner. The court found that the current petition was a repetition of the earlier challenge, as the same order had already been set aside in the previous judgment dated 11.4.2022. The court also noted that the assessment year in question for the current petition was 2019-2020, differing from the previous case which concerned the assessment year 2018-2019. However, the court held that the previous judgment's findings apply to the current assessment year as well, leading to the dismissal of the petition.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 747086 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 30-08-2022
• Assessment Year: misc
• Other Referred Cases: M/s. Nagindas Kasturchand and Bros. vs. Principal Commissioner of Income Tax 3, Ahmedabad in Special Civil Application No. 16529 of 2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M R BHATT; KARAN SANGHANI; MAITHILI MEHTA
• Assessee Lawyers: K M PARIKH
• Keywords: Assessment Order; Impugned order; Jurisdiction; Quashing; Setting Aside
• Section: 127(2)

Judgement Text

"C/SCA/16651/2021 ORDER DATED: 30/08/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 16651 of 2021 ========================================================== M/S NAGINDAS KASTURCHAND AND BROS. Versus PRINCIPAL COMMISSIONER OF INCOME TAX 3, AHMEDABAD ========================================================== Appearance: MR. K.M.PARIKH, ADV., KULDEEP K ADESARA(9222) for the Petitioner(s) No. 1 MR. M.R.BHATT, SR. ADV. WITH KARAN SANGHANI, ADV. FOR M R BHATT & CO.(5953) for the Respondent(s) No. 1,2,3 MS MAITHILI D MEHTA(3206) for the Respondent(s) No. 2 ========================================================== CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 30/08/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) Heard learned advocate Mr. K. M. Parikh for the petitioner and learned senior advocate Mr. M. R. Bhatt with learned Mr. Karan Sanghani for M.R.Bhatt & Co. for the respondents. 2. The only principal prayer in this petition is for quashing and setting aside impugned order dated 8.7.2021 passed by respondent no.1 under section 127(2) of the Income Tax Act, 1961. 3. In course of hearing, it was noticed that the very order impugned in this petition was subject matter of challenge before the Division Bench of this court in the case of very petitioner M/s. Nagindas Kasturchand and Bros. vs. Principal Commissioner of Income Tax 3, Ahmedabad in Page 1 of 3 C/SCA/16651/2021 ORDER DATED: 30/08/2022 Special Civil Application No. 16529 of 2021, which came to be allowed by judgment dated 11.4.2022. 3.1 The operative portion of the said judgment reads as under, “48. In view of the aforesaid, we have no hesitation in coming to the conclusion that the impugned order of transfer and all the consequential proceedings pursuant thereto could be said to be without jurisdiction. 49. In the result, this writ-application succeeds and is hereby allowed. The impugned order of transfer dated 8th July 2021 passed under Section 127(2) of the Act qua the writ-applicant is hereby quashed and set-aside. Consequently, the assessment order dated 28th September 2021 also stands quashed and setaside. 50. In view of the order passed in the main matter, the Civil Application stands disposed of. 51. We reserve the liberty in favour of the Revenue to initiate fresh proceedings for transfer under Section 127 of the Act by first issuing a show-cause notice assigning reasons, thereby giving an opportunity of hearing to the writ-applicant and thereafter proceed to pass a final order in accordance with law.” 3.2 It is abundantly clearly that the very order dated 8.7.2022 brought under challenge in this subsequent petition is already quashed. Therefore, the present petition is misconceived and is not liable to be entertained as it is a repetition of challenge of the order which is already set aside. 4. Learned advocate for the petitioner, however, submitted that the decision in Special Civil Application No. 16529 of 2021 was in the context of order of assessment passed against the petitioner assessee in respect of assessment year 2018-2019, whereas in the present case, assessment year under consideration is 2019-2020. Page 2 of 3 C/SCA/16651/2021 ORDER DATED: 30/08/2022 5. The above submission of learned advocate for the petitioner is misdirected. 6. The court is of the view that the order dated 11.4.2022 passed in Special Civil Application No. 16529 of 2021 will also apply to the succeeding assessment orders passed in the case of the petitioner. 7. The petition is disposed of with the above observations. (N.V.ANJARIA, J) (BHARGAV D. KARIA, J) C.M. JOSHI Page 3 of 3 "