Bombay High Court
Haren Textiles Private Limited vs Principal Commissioner Of Income ... on 8 September, 2021
Bench: K.R. Sriram, Abhay Ahuja
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY APPELLATE JURISDICTION
WRIT PETITION NO.1100 OF 2021
Haren Textiles Private Limited
having business address at
Opp. Civil Aviation Department,
Near Dahisar Check Naka,
Western Express Highway,
Dahisar (East) - 400 068
P.A. No. AAACH3166K .... Petitioner
Vs.
1 Principal Commissioner of
Income-Tax 4, having his office
at Room No. 629, 6th Floor,
Aaykar Bhavan, Maharshi Karve Road,
Mumbai - 400 020
email : [email protected] .... Respondent no.1
2. Assistant Commissioner of Income-Tax,
Circle 12(2), having his office
at Room No. 145, 1st Floor,
Aaykar Bhavan, Maharshi Karve Road,
Mumbai - 400 020
email : [email protected] .... Respondent no.2
Mr. Jintendra Singh for Petitioner
Mr. Sham V. Walve for Respondents-Revenue
::: Uploaded on - 14/09/2021 ::: Downloaded on - 11/10/2021 13:31:02 :::
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Coram : K.R. SHRIRAM &
ABHAY AHUJA, JJ
Date : 8th SEPTEMBER, 2021
JUDGMENT (Per K.R. SHRIRAM, J.) :
1. Petitioner is impugning an order dated 18th March, 2021
passed by Respondent No. 1, i.e., Principal Commissioner of Income-
Tax (PCIT), Mumbai- 4 rejecting a Revision Petition filed under Section
264 of the Income Tax Act, 1961 ("The Act") impugning the order
passed by the Assessing Officer under Section 270 AA(4) of the Act.
2. Petitioner, who is engaged in the business of manufacturing
and selling fabrics and also a trading member in the National Stock
Exchange filed its Return for the Assessment Year 2017-2018 on 31 st
October, 2017 declaring total income of Rs.2,27,11,320/-. Respondent
No. 2, i.e., the Assistant Commissioner of Income-Tax initiated scrutiny
assessment by issuing statutory notices under Sections 143(2) and
142(1) of the Act. Petitioner replied to these notices from time to time
and also furnished all details and documents. Respondent No. 2 passed
an Assessment order dated 19th December, 2019 under Section 143 (3)
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of the Act determining total income of Petitioner at Rs.7,41,84,730/-.
Respondent No. 2 determined book profit under the provisions of
Section 115 (JB) of the Act at Rs.2,19,33,505/-. Following this
assessment order, Respondent No. 2 issued demand notice dated 19 th
December, 2019 under Section 156 of the Act raising a demand of
Rs.1,80,14,619/-. As Petitioner found that Respondent No.2 had not
correctly allowed the Minimum Alternate Tax (M.A.T.) credit available to
Petitioner while determining the tax liability, Petitioner filed an
application dated 6th January, 2020 under Section 154 of the Act
seeking rectification of the assessment order. Respondent No.2
accepted the submissions of Petitioner and granted M.A.T. credit
available to Petitioner and issued the revised Computation Sheet dated
14th January, 2020 determining the correct amount of tax liability of
Petitioner. Respondent No. 2 also issued revised notice of demand
dated 14th January, 2020 under Section 156 of the Act raising demand
of Rs.57,356/- payable within 30 days from the service of the said
notice.
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3. Petitioner accepted the order passed by Respondent No. 2
under Section 154 of the Act and on 29th January, 2020 paid fully the
tax demand determined at Rs.57,356/-. This amount was paid.
4. Thereafter, Petitioner on 30th January, 2020 filed an
application under Section 270 (AA) of the Act in the prescribed Form
No. 68, before Respondent No. 2 seeking immunity from penalty etc.
This application was rejected by Respondent No. 2 by an order dated
28th February, 2020. Aggrieved by this order, Petitioner filed an
application dated 18th December, 2020 before Respondent No.1 under
the provisions of Section 264 of the Act. Respondent No. 1, rejected
Petitioner's application on the ground that Sub-Section 6 of Section 270
(AA) specifically prohibits revisionary proceedings under Section 264 of
the Act against the order passed by Assessing Officer under Section
270 (AA)(4) of the Act. It is this order which is challenged by Petitioner.
Mr. Singh submits that there is no such prohibition or bar as
held by Respondent No. 1 and we would agree with Mr. Singh.
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5. It will be useful to reproduce Section 270 (AA) of the Act,
which reads as under :
270AA. (1) An assessee may make an application to the
Assessing Officer to grant immunity from imposition of
penalty under section 270A and initiation of proceedings
under Section 276C or Section 276CC, if he fulfils the
following conditions, namely:-
(a) the tax and interest payable as per the order of
assessment or reassessment under sub-section (3) of
Section 143 or Section 147, as the case may be, has
been paid within the period specified in such notice of
demand;
and
(b) no appeal against the order referred to in clause (a)
hasbeenfiled.
(2) An application referred to in Sub-Section (1) shall be
made within one month from the end of the month in
which the order referred to in clause (a) of Sub-Section
(1) has been received and shall be made in such form and
verified in such manner as may be prescribed.
(3) The Assessing Officer shall, subject to fulfilment of
the conditions specified in Sub-Section (1) and after the
expiry of the period of filing the appeal as specified in
clause (b) of sub-section (2) of Section 249, grant
immunity from imposition of penalty under Section 270A
and initiation of proceedings under Section 276C or
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Section 276CC, where the proceedings for penalty under
Section 270A has not been initiated under the
circumstances referred to in Sub-Section (9) of the said
Section270A.
(4) The Assessing Officer shall, within a period of one
month from the end of the month in which the
application under Sub-Section (1) is received, pass an
order accepting or rejecting such application:
Provided that no order rejecting the application shall be
passed unless the assessee has been given an
opportunity of being heard.
(5) The order made under Sub-Section (4) shall be final.
(6) No appeal under Section 246A or an application for
revision under Section 264 shall be admissible against the
order of assessment or reassessment, referred to in
clause (a) of Sub-Section (1), in a case where an order
under Sub-Section (4) has been made accepting the
application.
6. Under Sub-Section 6 of Section 270 AA, no appeal under
Section 246 (A) or an application for revision under Section 264 shall be
admissible against the order of assessment or re-assessment referred
to in Clause (a) of Sub-Section 1, in a case where an order under Sub-
Section 4 has been made accepting the application. This only means
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that when an assessee makes an application under Sub-Section 1 of
Section 270 AA and such an application has been accepted under Sub-
Section 4 of Section 270 AA, the assessee cannot file an appeal under
Section 246 (A) or an application for revision under Section 264
against the order of assessment or re-assessment passed under Sub-
Section 3 of Section 143 or Section 147. This does not provide for any
bar or prohibition against the assessee challenging an order passed by
the Assessing Officer, rejecting its application made under Sub- Section
1 of Section 270 AA.
The application before Respondent No.1 was an order
challenging an order of rejection passed by Respondent No. 2 of an
application filed by Petitioner under Sub-Section 1 of Section 270 AA
seeking grant of immunity from imposition of penalty and initiation of
proceedings under Sub-Section 276( C) or Section 277 (CC).
7. Therefore, in our view, Respondent no. 1 was not correct in
rejecting the application on the ground that there is a bar under Sub-
Section 6 of Section 270(AA) in filing such application. The impugned
order has to be set aside and it is hereby set aside.
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8. The matter is remanded back to Respondent No. 1 to
consider de-novo, the application filed by Petitioner under Section 264
impugning the order passed by the Assessing Officer under Sub-Section
4 of Section 270 AA and pass such orders as he deems fit in accordance
with law after granting personal hearing to Petitioner.
If Respondent No. 1 requires any further documents to be
submitted by Petitioner, he shall cause to be served a communication
upon Petitioner atleast one week before the date fixed for personal
hearing.
9. Ordered accordingly. Petition disposed.
10. Respondent No.1 shall complete the process mentioned
above in paragraph 8 and pass a reasoned order within six weeks from
today.
( ABHAY AHUJA, J.) ( K.R. SHRIRAM, J.)
