Zoom Commercial (P) Limited through its director Sulekha Jalan V. Principal Commissioner of Income Tax, Ranchi and Commissioner, National Faceless Assessment Centre, New Delhi and Deputy / Assistant Commissioner of Income Tax, Range-3, Ranchi and Income Tax Office, Ward-3(3), Ranchi

WPC/3586/2021

AI Insights

The case involves two writ petitions filed by Zoom Commercial (P) Limited against notices issued under Section 148 of the Income Tax Act, 1961, by various income tax authorities in Ranchi. The petitioner challenged the notices on grounds of lack of jurisdiction and vagueness of the 'reason to believe' cited in the notices, which were allegedly based solely on information from the investigation wing without independent verification. During the proceedings, a final assessment order was passed, leading the petitioner to seek withdrawal of the writ petitions to focus on the appeal against this order. The court granted permission to withdraw the petitions, leading to their dismissal.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 796227 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 08-02-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AMRITA SINHA
• Assessee Lawyers: PRASHANT PALLAV; SHIVANI JALUKA
• Keywords: Assessment proceedings; Jurisdiction; Principle of precedence; Quashing of notice; Reason to believe; Vague
• Section: 148; 143(2)

Judgement Text

" IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(T) No. 3586 of 2021 With W.P.(T) No. 3543 of 2021 Zoom Commercial (P) Limited through its director Sulekha Jalan R/o Ranchi --- --- Petitioner (In both cases) Versus 1.Principal Commissioner of Income Tax, Ranchi 2.The Commissioner, National Faceless Assessment Centre, New Delhi 3.The Deputy / Assistant Commissioner of Income Tax, Range-3, Ranchi 4.Income Tax Office, Ward-3(3), Ranchi --- --- Respondents (in both cases) ….... CORAM: HON’BLE MR. JUSTICE APARESH KUMAR SINGH HON’BLE MR. JUSTICE DEEPAK ROSHAN Through Video Conferencing For the Petitioner : M/s Prashant Pallav, Shivani Jaluka, Advocate For the Respondents : Ms. Amrita Sinha, Advocate 03/08.02.2022 Petitioner has approached this Court with the following prayers: W.P.(T) No. 3586 of 2021 a) For the issuance of an appropriate writ(s), order(s) or direction (s) for quashing of the notice dated 9th of March 2020 (Annexure-1) issue under Section 148 of the Income Tax Act, 1961 as the impugned notice is wholly without jurisdiction and has been issued solely on the basis of the information received by the investigation wing of the respondent department, without forming any independent ‘reason to believe’. b) For the issuance of such other writ(s), order(s), or direction(s) for quashing of the notice dated 23rd of February 2021(Annexure-3) as the ‘reason to believe’ is not in accordance with the principle of law. The ‘reason to believe ‘ so specified is entirely vague and formed solely on the basis of the information received by the Assessing Officer from the Investigating Wing of the Department. c) For the issuance of such other writ(s), order (s), or direction(s) for quashing of the show cause notice dated 28th of August 2021, (Annexure-7) as the same is wholly without jurisdiction and illegal owing to the fact that the respondent department has completely ignored the ‘principle of precedence’ which is well applicable in assessment proceedings under the Income Tax Act, 1961. d) For the issuance of such other writ(s), order(s), or direction(s) staying the operation of the notice dated 9th of March 2020 (Annexure-1) and notices subsequent thereof till the instant petition is adjudicated by this Hon’ble Court. e) For the issuance of such other writ(s), order(s), or direction(s) as this Hon’ble Court may think just and proper in the facts and circumstances of the case doing conscionable justice to the petitioner. -2- W.P.(T) No. 3543 of 2021 a) For the issuance of an appropriate writ(s), order(s) or direction (s) for quashing of the notice dated 20th of March 2020 (Annexure-1) issue under Section 148 of the Income Tax Act, 1961 as the impugned notice is wholly without jurisdiction and has been issued solely on the basis of the information received by the investigation wing of the respondent department, without forming any independent ‘reason to believe’. b) For the issuance of such other writ(s), order(s), or direction(s) for quashing of the notice dated 23rd of February 2021(Annexure-3) as the ‘reason to believe’ is not in accordance with the principle of law. The ‘reason to believe ‘ so specified is entirely vague and formed solely on the basis of the information received by the Assessing Officer from the Investigating Wing of the Department. c) For the issuance of such other writ(s), order (s), or direction(s) for quashing of the show cause notice dated 28th of August 2021, (Annexure-7) as the same is wholly without jurisdiction and illegal owing to the fact that the respondent department has completely ignored the ‘doctrine of precedence’ which is well applicable in assessment proceedings under the Income Tax Act, 1961. d) For the issuance of such other writ(s), order(s), or direction(s) staying the operation of the notice dated 20th of March 2020 (Annexure-1) and notices subsequent thereof till the instant petition is adjudicated by this Hon’ble Court. e) For the issuance of such other writ(s), order(s), or direction(s) as this Hon’ble Court may think just and proper in the facts and circumstances of the case doing conscionable justice to the petitioner. 2. Learned counsel for the petitioner submits that during pendency of the writ petitions, the final assessment order under Section 143(2) read with Section 148 of the Income Tax Act has been passed against which petitioner has preferred an appeal. Therefore, learned counsel for the petitioner seeks permission to withdraw this petition in order to pursue the appeal. 3. Learned counsel for the respondent Ms. Amrita Sinha has no objection to the prayer. 4. Accordingly, permission is granted. The writ petitions are dismissed as withdrawn (Aparesh Kumar Singh, J.) (Deepak Roshan, J.) A.Mohanty "