Telangana High Court
Mytrah Energy Limited vs Union Of India on 23 July, 2024
THE HONOURABLE SRI JUSTICE SUJOY PAUL
AND
THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO
WRIT PETITION No.18368 of 2024
ORDER (per Hon'ble Sri Justice Sujoy Paul)
Sri Avinas Desai, learned counsel representing Sri TPS Harsha, learned counsel for the petitioner and Sri Vijhay K Punna, learned Senior Standing Counsel for Income Tax Department, appears for the respondent-Income Tax Department.
2. With the consent, finally heard.
3. During the course of hearing, learned counsel for the parties fairly admitted the following facts:
i) The draft assessment order was passed on 11.03.2024.
ii) Time limit for filing objections or acceptance (i.e.30 days) as per Section 144 C (2) was upto 11.04.2024.
iii) Time period within which the Assessment order was required to be passed (one month from end of month of filing objections or acceptance) as per Section 144 C (4) was upto 31.05.2024.
iv) The assessment order was admittedly passed on 11.06.2024.
4. Learned Senior Counsel by placing reliance on the judgment of Bombay High Court in Renaissance Services BV v. Deputy Commissioner of Income Tax (International Taxation) 1 submits that the Division Bench of Bombay High Court opined that if 1 2022 SCC OnLine Bom 11937 2 assessment order is not passed within the statutory limit prescribed under Sub-Section 4 of Section 144C of the Income Tax Act, 1961 (for short "the Act"), the order deserves to be set aside.
5. Learned Senior Standing Counsel for respondent-Income Tax Department did not dispute the aforesaid facts, but, supported the impugned order.
6. We are in respectful agreement with the view taken by the Bombay High Court in Renaissance Services BV's case (supra) which is inconsonance with statutory mandate ingrained in Section 144C and Sub-section (4) of Section 144 C of the Act. Since the assessment order is not passed within the prescribed permissible statutory limitation, the same cannot sustain judicial scrutiny. Resultantly, the impugned order dated 11.06.2024 is set aside.
7. The Writ Petition is allowed. No costs.
Interlocutory applications, if any pending, shall also stand closed.
_____________ Sujoy Paul, J _______________________________ Namavarapu Rajeshwar Rao, J 23.07.2024 nvl/ns