Ranbir Singh, V. The Union of India

CWJC/5971/2022

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The case involves Ranbir Singh, the petitioner, who challenged the assessment order and demand notice issued by the Income Tax authorities for the assessment year 2014-15. The petitioner, through his authorized representative, argued that the assessment order was passed without considering the additional material provided, which was crucial for a fair assessment. The High Court of Patna, upon reviewing the submissions and the draft assessment order, agreed that the principles of natural justice were violated as the additional material was not considered, leading to the quashing of the assessment order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 722486 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 21-06-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K N SINGH; RISHI RAJ SINHA
• Assessee Lawyers: P N SHAHI; ALOK SHAHI
• Keywords: Assessment Order; Natural Justice; Short Term Capital Gain; Writ of Certiorari
• Section: 147; 144; 144B

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.5971 of 2022 ====================================================== Ranbir Singh, S/o Late J.L. Singh, resident of 28, Montessori School Lane, Boring Road, P.S.-Srikrishnapuri, District-Patna through authorized representative, Uday Pratap Singh, S/o Ranbir Singh, aged 61 years, Male, resident of B6-503, Alcon Rennaisant, Survey No-54/3/1, Near EON IT Park, Pune, Maharashtra. ... ... Petitioner/s Versus 1. The Union of India through the Principal Chief Commissioner, Income Tax (Bihar and Jharkhand), Revenue Building, Bir Chand Patel Path, Patna. 2. The Principal Chief Commissioner, Income Tax (Bihar and Jharkhand), Revenue Building, Bir Chand Patel Path, Patna. 3. The Deputy Commissioner of Income Tax, Circle 4, Lok Nayak Bhawan, Dak Bungalow Chouraha, Patna. 4. The Income Tax Officer, Ward-1 (1), Lok Nayak Bhawan, Dak Bungalow Chouraha, Patna. 5. The Deputy Commissioner of Income Tax, National Faceless Assessement Centre, Delhi. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. P.N.Shahi, Sr. Advocate Mr.Alok Kumar @ Alok Kr Shahi, Advocate For the Respondent/s : Dr. K.N.Singh, A.S.G. Mr. Rishi Raj Sinha, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 21-06-2022 Petitioner has prayed for the following relief(s):- “a) For issuance of writ of Certiorari, quashing assessment order dated 26.03.2022 passed under Sec. 147 read with Sec. 144 read with Sec. 144B of Income Tax Act and demand notice dated 26.03.22 (Annexure-10 Series) issued by respondent no 5 for AY 2014-15 without considering the reply filed by the Petitioner, respondent had violated the principles Patna High Court CWJC No.5971 of 2022 dt.21-06-2022 2/3 of Natural Justice. b) For any other consequential relief or reliefs for which the petitioner is found entitled during course of hearing of this writ petition.” On 25.04.2022, we had passed the following order:- “Shri P.N. Shahi, learned senior counsel for the petitioner, inviting our attention to paragraph no. 2.9 (page-77) of the draft assessment order (page 73), submits that the assessee had placed on record material (page 25) which ought to have been considered by the authority while passing the assessment order dated 26th March, 2022 (page 84). There is proper acknowledgment of the petitioner having placed additional material (page 25) which the authority ought to have looked into and dealt with while passing the final order in proposition to be draft assessment order dated 14th of March, 2022. It is further pointed out that had the authority accounted for such material, perhaps the issue of short term capital gain would have had a different bearing on the outcome of the decision i.e. the assessment order dated 26th of March, 2022. Notice. As prayed for, let Reply be positively filed by the respondents within a period of three weeks from today. Rejoinder thereto, if any, be filed within a period of three weeks thereafter. Meanwhile, no coercive steps be taken against the petitioner. List this case on 21.06.2022.” The observations made supra are not disputed. In view of the same, the impugned order of assessment dated 26.03.2022 (Annexure- 10 series, Page 84) is quashed and set aside for the reason that the order stands passed Patna High Court CWJC No.5971 of 2022 dt.21-06-2022 3/3 in violation of principles of natural justice; material placed on record was neither referred to nor considered and dealt with; entails civil and penal consequences inasmuch as liability stands fastened upon the petitioner. Liberty reserved to the petitioner to place additional materials, should the need so arise, within a period of two weeks from today. The Assessing Authority shall pass a fresh order expeditiously in compliance with the principles of natural justice. The instant petition sands disposed of in the aforesaid terms. Interlocutory Application(s), if any, also stands disposed of. Sujit/Ashwini (Sanjay Karol, CJ) ( S. Kumar, J) AFR/NAFR CAV DATE Uploading Date 23.06.2022 Transmission Date "