RAJASTHAN TECHNICAL UNIVERSITY V. DEPUTY COMMISSIONER OF INCOME TAX

CW/6573/2019

AI Insights

The case involves Rajasthan Technical University challenging a notice and subsequent reassessment order issued under Section 148 of the Income Tax Act, 1961. The university contested the reassessment based on an alleged delay and procedural improprieties in rejecting their objections. The court examined the timeline of events, including a survey and seizure of documents, the issuance of the notice, and the handling of objections. The primary legal contention was whether the reassessment order was time-barred and whether the university was afforded adequate opportunity to contest the objections.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747755 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 08-05-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: SHANTANU SHARMA; ANURAG MATHUR; BHAVANA LADHA
• Assessee Lawyers: SANJAY JHANWAR; WILSON JOY
• Keywords: Exemption; Income Tax; Limitation; Objections; Reassessment order
• Section: 148; 10(23C)

Judgement Text

"[2024:RJ-JP:21750-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 6573/2019 Rajasthan Technical University, Rawat Bhata Road, Akelgarh, Kota, 324010 Through Manoj Kumar Jangid, Assistant Registrar. ----Petitioner Versus Deputy Commissioner Of Income Tax, (Exemption), R. No/308A, 3rd Floor, Kailash Heights, Tonk Road, Jaipur. ----Respondent For Petitioner(s) : Mr. Sanjay Jhanwar, Sr. Adv. with Mr. Wilson Joy, Adv. For Respondent(s) : Mr. Shantanu Sharma, Adv. with Mr. Anurag Mathur, Adv. & Ms. Bhavana Ladha, Adv. HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE BHUWAN GOYAL Order 08/05/2024 AVNEESH JHINGAN , J [ORAL]:- 1. This petition is filed challenging notice dated 08.07.2011 issued under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the IT Act’) and the re-assessment order dated 27.03.2019. 2. The brief facts are that the petitioner-University was established under the Rajasthan Technical University Act, 2006. In a survey conducted on 22.06.2011, the books of accounts and documents were seized. The petitioner filed an income tax return for the Assessment Year 2008-09 and claimed exemption under Section 10(23C) of the IT Act. On the basis of discrepancies revealed during the survey, notice under Section 148 of the IT Act was issued on 08.07.2011. The petitioner filed objections on [2024:RJ-JP:21750-DB] (2 of 3) [CW-6573/2019] 12.07.2011. In the writ filed challenging rejection of objections, the counsel for revenue sought permission to withdraw the order with liberty to reconsider objection afresh. Thereafter, the objections dated 12.07.2011 were rejected vide order dated 01.03.2019. The proceedings culminated in reassessment order dated 27.03.2019. 3. Learned Senior Counsel for the petitioner submits that the communication dated 01.03.2019 is not an order rejecting the objections and no opportunity of hearing was granted. Contention is that Section 148 proceedings were initiated in time but the reassessment order is time barred. 4. Counsel for the respondent submits that the petitioner has a remedy of appeal. Contention is that in order dated 01.03.2019 objections filed by petitioner were duly considered. It is further argued that there was stay during the pendency of the earlier writ petition and the special appeal thus the reassessment order passed is within the limitation. Submission is that the order dated 01.03.2019 was neither challenged before passing of the reassessment order nor is subject to challenge in this petition. 5. We have heard the counsels and perused the record. 6. From the reading of the order dated 01.03.2019 it is evident that the objections dated 12.07.2011 against the initiation of proceedings under Section 148 of the IT Act have been decided. 7. The petitioner choose not to challenge the order rejecting the objection and participated in proceedings culminating in re- assessment order. The grievance now raised against order dated 01.03.2019 can be dealt with by the Appellate Authority in appeal against reassessment order. [2024:RJ-JP:21750-DB] (3 of 3) [CW-6573/2019] 8. For deciding that the reassessment order is barred by limitation, adjudication of the factual aspect and the effect of stay orders and pendency of the writ petition and the special appeal before this Court needs to be reconsidered. 9. No case is made out for interference in the writ jurisdiction. The petition is dismissed relegating the petitioner to remedy of an appeal. (BHUWAN GOYAL),J (AVNEESH JHINGAN),J Mohita /67 Reportable:- Yes "