SHRI ADARSH JHUNJHUNWALA V. UNION OF INDIA, MINISTRY OF FINANCE DEPPTT. OF REVENUE AND 3 OTHERS

WTAX/1393/2019

AI Insights

Shri Adarsh Jhunjhunwala, a businessman and former director of a private limited company undergoing insolvency proceedings, challenged an order of assessment and a subsequent show cause notice under section 263 of the Income Tax Act. The original assessment order dated 30th December 2016 was cancelled by an order dated 22nd March 2019 from the Principal Commissioner of Income Tax, Varanasi. This cancellation and the ongoing statutory appeal at the Income Tax Appellate Tribunal in Varanasi formed the basis of the writ petition. The petitioner sought a mandamus to suspend the operation of the assessment order and the demands arising from it, citing the appeal's pending status as rendering his statutory right of appeal illusory.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 677842 (HC-WEST_BENGAL)
• Appeal Type: Others
• Pronouncement Date: 03-01-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SSC
• Assessee Lawyers: ABHINAV MEHROTRA
• Keywords: Assessment Order; Income Tax; Insolvency proceeding; Mandamus; Show cause notice; Writ petition; Statutory appellate tribunal
• Section: 263

Judgement Text

"Court No. - 7 Case :- WRIT TAX No. - 1393 of 2019 Petitioner :- Shri Adarsh Jhunjhunwala Respondent :- Union Of India, Ministry Of Finance Depptt. Of Revenue And 3 Others Counsel for Petitioner :- Abhinav Mehrotra Counsel for Respondent :- S.S.C. Hon'ble Biswanath Somadder,J. Hon'ble Ajay Bhanot,J. This writ petition has been taken out by one Shri Adarsh Jhunjhunwala, who claims to be a businessman and an Ex-Director of a Private Limited Company, which is presently undergoing insolvency proceeding. The subject matter of challenge has its genesis in an order of assessment dated 30th December, 2016, read with a show cause notice dated 25th February, 2019, issued under section 263 of the Income Tax Act, whereby the Revenue proposed to revise the assessment order dated 30th December, 2016. It further appears that pursuant to the issuance of the said show cause notice dated 25th February, 2019, an order dated 22nd March, 2019, was issued by the Principal Commissioner of Income Tax, Varanasi, whereby the original assessment order dated 30th December, 2016, stood cancelled. The order passed by the Principal Commissioner of Income Tax, Varanasi, dated 22nd March, 2019, under section 263 of the Income Tax Act, is now a matter of challenge before the statutory appellate tribunal at Varanasi. -2- In an order passed by us earlier today, we have allowed the petitioner’s civil miscellaneous application by permitting the writ petitioner to cause the following amendment in the prayer portion of the writ petition:- “To issue a writ, order or direction in the nature of MANDAMUS calling for the Record of proceedings of Assessment and thereafter to suspend the operation and implementation of Order of Assessment – Undated [claimed by Revenue to be made on 20.12.2016], issued by Respondent no. 4 including demand raised in consequence to such assessment, since the Income Tax Appeal of the Petitioner is awaiting adjudication before the Ld. ITAT. The Statutory Right of Appeal bestowed upon the Petitioner has been rendered rather illusionary and otiose in the present circumstance” There are several issues which have been raised before us all of which are stated in the grounds of the writ petition. In order to avoid prolixity, we refrain from reproducing the same since we do not wish to pass any order in the instant writ petition which could cause prejudice to either of the parties in respect of the pending statutory appeal at Varanasi. We are, however, of the view that the statutory appeal is required to be heard out and dispose of as expeditiously as possible, considering the facts and circumstance of the instant case. We, therefore, dispose of the writ petition with a direction upon the Income Tax Appellate Tribunal, Circuit Bench at Varanasi, to hear out and dispose of the pending statutory -3- appeal filed by the writ petitioner herein as expeditiously as possible, preferably within a period of two months but not later than three months from date of communication of a photostat certified copy of this order. While disposing of the statutory appeal, the learned Tribunal shall take into consideration the contention of the writ petitioner, as sought to be raised before us. We wish to make it clear that it will not be open either to the writ petitioner or to the Revenue to seek unnecessary adjournments before the learned Tribunal and the learned Tribunal shall not grant any such adjournment, unless of course, exigency so demands. Order Date :- 03.01.2020 Deepak/Dhananjai (Biswanath Somadder, J.) (Ajay Bhanot, J.) Court No. - 7 In Re: Civil Misc. Application No. Nill of 2020 Case :- WRIT TAX No. - 1393 of 2019 Petitioner :- Shri Adarsh Jhunjhunwala Respondent :- Union Of India, Ministry Of Finance Depptt. Of Revenue And 3 Others Counsel for Petitioner :- Abhinav Mehrotra Counsel for Respondent :- S.S.C. Hon'ble Biswanath Somadder,J. Hon'ble Ajay Bhanot,J. Considering the averments made in the instant miscellaneous application and upon hearing the learned advocates appearing on behalf of the parties, we allow the application by an order in terms of prayer “ i ”. Let the supplementary affidavit annexed to the application be also taken on record. Order Date :- 03.01.2020 Deepak/Dhananjai (Biswanath Somadder, J.) (Ajay Bhanot, J.) "