THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1 V. TARACHAND BACHOMAL RAMCHANDANI

TAXAP/1597/2007

AI Insights

The case involves multiple tax appeals by the Assistant Commissioner of Income Tax against Tarachand Bachomal Ramchandani, concerning the legality of assessments made without the service of a notice under Section 143(2) of the Income Tax Act. The core legal issue was whether the Income Tax Appellate Tribunal was correct in its decision that such assessments are illegal and without jurisdiction. The High Court of Gujarat at Ahmedabad, referencing the Supreme Court's decision in Assistant Commissioner of Income-tax Vs. Hotel Blue Moon, upheld the Tribunal's decision, leading to the dismissal of the department's appeals.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 728385 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 17-12-2014
• Assessment Year: misc
• Other Referred Cases: Assistant Commissioner of Income-tax Vs. Hotel Blue Moon
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: PURVISH MALKAN
• Assessee Lawyers: PRANAV DESAI
• Keywords: Assessment; Income Tax; Invalid; Jurisdiction; Legal; Notice
• Section: 143(2); 158BC

Judgement Text

"O/TAXAP/1509/2007 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 1509 of 2007 With TAX APPEAL NO. 1510 of 2007 With TAX APPEAL NO. 1589 of 2007 TO TAX APPEAL NO. 1590 of 2007 With TAX APPEAL NO. 1595 of 2007 TO TAX APPEAL NO. 1599 of 2007 With TAX APPEAL NO. 133 of 2008 TO TAX APPEAL NO. 136 of 2008 With TAX APPEAL NO. 129 of 2008 TO TAX APPEAL NO. 130 of 2008 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER ==================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment? NO 2 To be referred to the Reporter or not? NO 3 Whether their Lordships wish to see the fair copy of the judgment? NO 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder? NO 5 Whether it is to be circulated to the civil judge? NO Page 1 of 4 O/TAXAP/1509/2007 JUDGMENT ==================================== THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1....Appellant(s) Versus TARACHAND BACHOMAL RAMCHANDANI....Opponent(s) ==================================== Appearance: MR PRANAV G DESAI, ADVOCATE for the Appellant(s) No. 1 MR PURVISH J MALKAN, ADVOCATE for the Opponent(s) No. 1 ==================================== CORAM: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER Date : 17/12/2014 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of these appeals, the department has challenged the judgments and order of the Tribunal, whereby, the Tribunal has partly allowed the appeals preferred by the assessees. While admitting the matters, this Court has framed following substantial question of law: “Whether, on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal is right in coming to the conclusion that assessment made without service of notice under Section 143(2) of the Income Tax Act is illegal, invalid and without jurisdiction and, on that ground, assessment is canceled/annulled?” Page 2 of 4 O/TAXAP/1509/2007 JUDGMENT 2. The issue involved in these appeals, is now squarely governed by the decision of the Hon’ble the Apex Court in Assistant Commissioner of Income­tax Vs. Hotel Blue Moon, reported in [2010] 321 ITR 362 (SC), wherein, the Hon’ble the Apex Court has held as under: “Section 158BC, read with section 143(2) of the Income tax Act, 1961 – Block assessment in search cases – Procedure for – Whether for determination of undisclosed income for a block period under provisions of Section 158BC, provisions of section 142 and sub­ sections (2) and (3) of section 143 are applicable and no assessment can be made without issuing notice under section 143(2) – Held, yes – Whether, therefore, where Assessing Officer, for any reason, repudiates return filed by assessee in response to notice under section 158BC(a), he must necessarily issue a notice under section 143(2) within time prescribed in proviso to section 143(2) – Held, yes.” 3. There is no dispute amongst both the learned counsel that the aforesaid decision will apply in the facts of this case, as the facts and question of law raised in these appeals are identical and therefore, we are not giving elaborate reasons nor narrate the factual scenario as the same are not in dispute. 4. Accordingly, the question, “Whether, on the facts and in the circumstances of the case and in law, the Income Tax Appellate Page 3 of 4 O/TAXAP/1509/2007 JUDGMENT Tribunal is right in coming to the conclusion that assessment made without service of notice under Section 143(2) of the Income Tax Act is illegal, invalid and without jurisdiction and, on that ground, assessment is canceled/annulled?” is answered in the affirmative in favour of the assessees and against the department. The appeals stand dismissed accordingly. [ K. S. Jhaveri, J. ] [ K. J. Thaker, J. ] hiren Page 4 of 4 "