Prominent Datamatics Marketing Pvt Ltd V. Union Of India and 3 Others

WTAX/906/2023

AI Insights

The case involves M/S Prominent Datamatics Marketing Pvt Ltd, the petitioner, challenging an order and a consequential notice issued by the Union of India under the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner contested the absence of a DIN number on the notice and the timing of the order under section 148A(d), which they argued was issued before the permissible date. The respondents argued that the petitioner would not be prejudiced as all issues could be raised during the re-assessment proceedings. The court referenced a similar case, Writ Tax No.561 of 2023, to support its decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 817364 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 04-08-2023
• Assessment Year: misc
• Other Referred Cases: Writ Tax No.561 of 2023, Red Chilli International Sales, Anshul Jain
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: A S G I; GAURAV MAHAJAN; NAVEEN GUPTA
• Assessee Lawyers: NISHANT MISHRA; VEDIKANATH
• Keywords: Circular; DIN Number; Escaped assessment; Notice; Re-assessment
• Section: 148; 148A(d)

Judgement Text

"Neutral Citation No. - 2023:AHC:157187-DB Court No. - 46 Case :- WRIT TAX No. - 906 of 2023 Petitioner :- M/S Prominent Datamatics Marketing Pvt Ltd, Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Nishant Mishra,Vedika Nath Counsel for Respondent :- A.S.G.I.,Gaurav Mahajan,Naveen Chandra Gupta Hon'ble Ashwani Kumar Mishra,J. Hon'ble Syed Aftab Husain Rizvi,J. Heard learned counsel for the petitioner and Sri N.C. Gupta, learned counsel for respondents. This petition is directed against an order passed by the department, dated 31.03.2023, under section 148A(d) of the Income Tax Act, 1961 as well as consequential notice for re-assessment under section 148 of the Act. Dispute raised in the present petition is with reference to assessment year 2016- 17 in respect of which notice has been issued to the petitioner on 28.03.2023. The reply/objection of petitioner has been considered and ultimately a decision has been taken to initiate process of re-assessment, after coming to a prima facie conclusion that a sum of Rs.9,52,30,000/- chargeable to tax has escaped assessment in the case of assessee for the assessment year 2016-17. Consequential notice has also been issued for re-assessment under section 148 of the Act. The proceedings are challenged by the petitioner contending that notice issued does not contain DIN Number and, therefore, circular issued by the department on 14.08.2019 has not been adhered to. The other ground of challenge is that the order under section 148A(d) of the Act has been passed before the period wherein such an order could have been passed. According to the petitioner, since notice has been served upon it on 28.03.2023, and reply to it has been submitted on 29.03.2023, therefore, the decision with regard to initiation of re-assessment proceedings could have been taken only after 31.03.2023. On behalf of the respondents, it is stated that no prejudice is caused to the petitioner in the matter and even otherwise, all issues which are available to the petitioner can be pressed at the stage of re-assessment proceedings and, therefore, the adjudication on such issues, at this stage, is not warranted. It is also submitted that since last date of limitation for passing of the order was 31.03.2023, therefore, the contention of petitioner that such order ought to have been passed after 31.03.2023 is misconceived. This Court has elaborately examined the scope of adjudication by the assessing authority on the aspect of re-assessment in Writ Tax No.561 of 2023, decided on 05.05.2023. After examining the scheme of the Act as also the judgment rendered by the different courts on the issue this Court observed as under in para 22 to 25 of the judgment:- \"22. Maintainability of the writ petition against the order passed under section 148A(d) is distinct from the scope of adjudication available qua the order passed under section 148A(d) of the Act. The limited scope available under Article 226 of the Constitution of India to adjudicate an order passed under section 148A(d) of the Act, 1961 would be confined to existence of the information only, in view of the scheme of the Act of 1961. A contrary construction cannot be culled out from the judgment of the Supreme Court of India in Red Chilli International Sales (supra). 23. In Anshul Jain (supra) the Supreme Court did examine the scope of proceedings under section 148A vis-a-vis reassessment proceedings under section 148 of the Act to observe that by the very nature of proceedings the examination would remain more exhaustive at the stage of reassessment proceedings with elaborate remedies available under the statute to the assessee. 24. The order passed by the Assessing Officer under section 148A(d) of the Act regarding existence of information suggesting that income chargeable to tax has escaped assessment would otherwise remain subject to reassessment order passed under section 148 of the Act. Thus, any observations of the assessing authority while passing order under section 148A(d) with regard to merits of assessment of income would remain subject to the order to be ultimately passed in reassessment proceedings under section 148 and would not be to the prejudice of rights and contentions of the assessee under section 148 as well as departmental remedies in respect thereof. 25. In view of our deliberations and discussions held above, we do not find any merit in the challenge laid to the order of assessing authority under section 148A(d) of the Act, 1961, dated 29.03.2023, as well as the notice issued under section 148 of the Act, 1961. Subject to the observations contained in this judgment the writ petition accordingly fails and is dismissed. \" In the facts of the case, this Court is of the considered opinion that the ground on which challenge to a notice ordinarily would be entertained, arising out of an order passed under section 148A(d) of the Act, is not attracted and, therefore, no interference is warranted. Even otherwise, it is well settled that issues which are available to the petitioner can be pressed at the stage of re-assessment proceedings and, therefore, petitioner is not prejudiced at this stage of the proceedings. Leaving it open for the petitioner to raise all possible issues at the stage of re- assessment proceedings, in accordance with law, this petition is consigned to records. Order Date :- 4.8.2023 Ashok Kr. Digitally signed by :- ASHOK KUMAR High Court of Judicature at Allahabad "