Delhi High Court
Anand Nvh Products Private ... vs National E Assessment Centre ... on 6 August, 2021
$~S-62
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 7936/2021
ANAND NVH PRODUCTS PRIVATE LIMITED ..... Petitioner
Through: Mr. Shreyash Shah, Advocate with
Mr. Mukesh Butani, Mr. Shankey
Agrawal and Mr. Karan Dhanuka,
Advocates.
versus
NATIONAL E ASSESSMENT CENTRE DELHI
& ANR. ..... Respondents
Through.: Mr. Sanjay Kumar, Advocate with
Ms. Easha Kadiyan, Advocate.
% Date of Decision: 06th August, 2021
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
JUDGMENT
MANMOHAN, J: (Oral)
The petition has been heard by way of video conferencing.
CM Appl. 24646/2021 (for exemption)
Allowed, subject to just exceptions.
Accordingly, present application stands disposed of.
Signature Not Verified
Digitally Signed By:JASWANT
Signing Date:08.08.2021
09:29:09
W.P.(C) 7936/2021 & CM APPLs. 24645-646/2021
1. Present writ petition has been filed challenging the Assessment Order
dated 15th May, 2021, notice of demand issued under Section 156 and notice
for initiating penalty proceeding under section 271AAC(l) of the Income
Tax Act, 1961 ['the Act'] passed by Respondent No. 1 under Section 143(3)
read with Section 144C for the assessment year 2017-18 and restoring the
proceedings at the level of Dispute Resolution Panel ('DRP').
2. Learned counsel for the Petitioner states that Respondent No.1 erred
in passing the impugned Final Assessment Order on 15th May 2021, without
waiting for the decision of the DRP. He states that the petitioner had filed
objections before the DRP on 5th May, 2021 against the Draft Assessment
Order dated 6th April 2021 i.e., within the prescribed thirty-day time period
from the date of the Draft Assessment Order as per Section 144C(2) of the
Act. He states that the impugned Assessment Order is in blatant violation of
the mandatory procedure prescribed in Section 144C of the Act. He
emphasises that Respondent No. 1 acted in undue haste in passing the Final
Assessment Order on 15th May 2021, even though the Ministry of Finance
[through Central Board of Direct Taxes (CBDT)], vide Circular No. 8 of
2021 dated 30th April 2021, had extended the timeline for filing of
objections before the DRP until 31st May 2021. He contends that the action
of Respondent No. 1 has resulted in grave and serious prejudice to the
Petitioner inasmuch as demand of INR 58,72,510/- (Rupees Fifty Eight
Lakhs Seventy Two Thousand Five Hundred and Ten Only) has been raised.
3. Issue notice. Mr. Sanjay Kumar, Advocate, accepts notice on behalf
of the respondents. He states that he has no instructions in the present case.
Signature Not Verified
Digitally Signed By:JASWANT
Signing Date:08.08.2021
09:29:09
Since an advance copy of the present writ petition had been served upon the
petitioner, this Court has no other option but to proceed with the matter.
However, the respondents are given liberty to seek variation/modification of
the order in the event facts have been suppressed from this Court or facts
have been mis-stated by the petitioner.
4. Having perused the paperbook, this Court finds that the Assessment
Order has been passed in violation of mandatory procedure prescribed under
Section 144C of the Act as well as the aforementioned CBDT Circular
inasmuch as without waiting for the decision of the DRP, Respondent No. 1
has passed the final Assessment Order.
5. Keeping in view the aforesaid, the final Assessment Order dated 15th
May, 2021, notice of demand issued under Section 156 and notice for
initiating penalty proceedings under Section 271AAC(1) of the Act passed
by Respondent No. 1 under Section 143(3) read with Section 144C for the
assessment year 2017-18 are set aside and the proceeding is restored at the
level of the DRP. With the aforesaid direction, the present writ petition
along with pending applications stand disposed of.
6. The order be uploaded on the website forthwith. Copy of the order be
also forwarded to the learned counsel through e-mail.
MANMOHAN, J
NAVIN CHAWLA, J
AUGUST 6, 2021
TS
Signature Not Verified
Digitally Signed By:JASWANT
Signing Date:08.08.2021
09:29:09
