M/S VEGA AUTO ACCESSORIES PRIVATE LTD V. UNION OF INDIA

WP/103081/2021

AI Insights

The case involves M/s. Vega Auto Accessories Private Ltd., represented by its managing director, Dilip Premraj Chindak, who filed a writ petition challenging the amendments to the Finance Act, 2021. The petitioner argued that these amendments were illegal, arbitrary, unreasonable, and violated Article 14 of the Constitution, along with the doctrines of promissory estoppel and legitimate expectation. The petitioner sought a writ of certiorari to quash the amendments and a writ of mandamus to direct the Income Tax Settlement Commission to hear and dispose of their application under Section 245C of the Income Tax Act. However, the court found that the petitioner's concerns were addressed by the Department's Press Release and the order under Section 119(2)(b), which allowed for the late filing of applications.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 722196 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-04-2022
• Assessment Year: misc
• Laws Referred To: Finance Act, 2021, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M B KANAVI; Y V RAVIRAJ
• Assessee Lawyers: SHASHANK HEGDE
• Keywords: Assessment proceedings; Finance Act 2021; Income Tax; Legitimate Expectation; Promissory Estoppel; Writ petition
• Section: 119(2)(b); 226; 245C; 227

Judgement Text

"- 1 - WP No. 103081 of 2021 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 22ND DAY OF APRIL, 2022 BEFORE THE HON'BLE MR JUSTICE N.S.SANJAY GOWDA WRIT PETITION NO. 103081 OF 2021 (T-IT) BETWEEN: M/S.VEGA AUTO ACCESSORIES PRIVATE LTD., R/BY ITS MANAGING DIRECTOR, DILIP PREMRAJ CHINDAK, AGED ABOUT MAJOR, PLOT NO.12B, SY.NO.342, BEMCIEL INDUSTRIAL ESTATE, UDYAMBAG, BELAGAVI-590008 KARNATAKA STATE, INDIA. …PETITIONER (BY SRI SHASHANK S. HEGDE, ADVOCATE) AND: 1. UNION OF INDIA, THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001. 2. MINISTRY OF FINANCE, THROUGH THE SECRETARY, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001. 3. CENTRAL BOARD OF DIRECT TAXES, THROUGH THE SECRETARY, - 2 - WP No. 103081 of 2021 MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110001. 4. THE INCOME TAX SETTLEMENT COMMISSION, ADDITIONAL BENCH-I, GROUND FLOOR, S.K. RATHOD MARG, MAHALAXMI CHAMBERS, MUMBAI-400034, MAHARASHTRA. 5. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, SARAF COLONY, BELAGAVI-590006, DISTRICT. BELAGAVI, KARNATAKA. …RESPONDENTS (BY SRI M.B.KANAVI, ADV. FOR RESPONDENT NOS.1 AND 2) (BY SRI Y.V.RAVIRAJ, ADV. FOR RESPONDENT NO.3 TO 5) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO HOLD THAT THE IMPUGNED AMENDMENTS/ PROVISIONS OF THE FINANCE ACT, 2021 IN ANNEXURE-A ARE ILLEGAL, ARBITRARY, UNREASONABLE VOID UN FAIR AND VIOLATIVE OF ARTICLE 14 OF CONSTITUTION AND ALSO VIOLATIVE OF THE DOCTRINE OF PROMISSORY ESTOPPEL AND DOCTRINE OF LEGITIMATE EXPECTATION AND ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT OR ORDER OR DIRECTION AND QUASH THE IMPUGNED AMENDMENT/PROVISIONS OF THE FINANCE ACT, 2021 AT ANNEXURE-A AND ISSUE A WRIT OR ORDER OR DIRECTION IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.4 TO HEAR THE APPLICATION FILED UNDER SECTION 245C AND DISPOSE OFF SAME IN ACCORDANCE WITH LAW AND ISSUE A WRIT, ORDER OR DIRECTION, MORE PARTICULARLY ONE IN THE NATURE OF WRIT OF PROHIBITION DECLARING THE ACTION OF THE RESPONDENT NO.5 IN CONTINUING WITH THE ASSESSMENT PROCEEDINGS FOR THE A.Y.2014-15 TO 2020-21 AS BEING VIOLATIVE OF THE PROVISIONS OF THE INCOME TAX ACT, 1961. THIS PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - WP No. 103081 of 2021 ORDER In this writ petition, the amendments made to the provisions of the Finance Act, 2021 are called in question. 2. A prayer is also made to direct the 4th respondent to hear the application filed under Section 245C and dispose of the same. 3. Learned counsel Sri Y.V.Raviraj appearing for Revenue produces a copy of the Press Release dated 07.09.2021, by which, the Revenue has permitted those assesses who could not file their applications as on 31.01.2021 for settlement have been file their applications on or before 30.09.2021. 4. Learned counsel Sri Y.V.Raviraj submits that in the instant writ petition, petitioner has already made his application in the month of March-2021 and therefore the prayers sought for in the writ petition would not survive for consideration and the grievances of the petitioner are satisfied by issuance of Press Release on 07.09.2021. - 4 - WP No. 103081 of 2021 5. It may also be pertinent to state here that the counsel for the petitioner also submits that an order under Section 119(2)(b) of Income Tax Act, 1961 has been made permitting filing of applications till 30.09.2021. 6. Recording the said submissions, this writ petition is being disposed off as having become unnecessary since as per the order dated 28.09.2021 and the Press Release dated 07.09.2021 the Department itself have stated that the application of the petitioner would be considered. SD JUDGE CKK "