Madras High Court
M/S. Pentamedia Graphics Limited vs The Deputy Commissioner Of Income ... on 15 December, 2021
W.A.Nos. 2471 & 2472 of 2021 and CMP.Nos.15941 & 15944 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 15.12.2021
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
Writ Appeal Nos. 2471 & 2472 of 2021
and
CMP.Nos.15941 & 15944 of 2021
M/s. Pentamedia Graphics Limited
Rep. by its Whole Time Director
Mr.V.Venkataraman
T2, III Floor, Nutech Plaza
73, Arcot Road, Kodambakkam
Chennai – 600 024 .. Appellant in both WAs
Versus
The Deputy Commissioner of Income Tax
Media Circle – I
Room No.311, New Block III, 3rd Floor
No.121, Mahatma Gandhi Road
Nungambakkam
Chennai – 600 034 .. Respondent in both WAs
Writ Appeals filed under Clause 15 of Letters Patent against the common
order dated 20.07.2021 made in W.P. Nos. 34985 and 34986 of 2012.
For Appellant : Mr. G. Baskar in both WAs
For Respondent : Mr. Prabhu Mukunth Arunkumar,
Senior Standing Counsel in both WAs
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W.A.Nos. 2471 & 2472 of 2021 and CMP.Nos.15941 & 15944 of 2021
COMMON JUDGMENT
(Judgment of this Court was delivered by R. MAHADEVAN, J.)
Heard Mr.G.Baskar, learned counsel for the appellant and
Mr.Prabhu Mukunth Arunkumar, learned senior standing counsel appearing for
the respondent.
2.Both the writ appeals arise from the common order dated 20.07.2021
passed by the learned single judge in W.P. Nos. 34985 and 34986 of 2012,
wherein, the grounds raised by the appellant / assessee challenging the
re-opening of assessment for the years 2005-06 and 2006-07, were rejected and
the appellant was granted liberty to file appeals against the orders of
reassessment.
3.The relevant facts leading to the filing of the present writ appeals would
run thus:
3.1 The appellant is engaged in the business of development of
computer software and exports of the same out of India. According to the
appellant, in respect of the income generated out of such export business, they
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W.A.Nos. 2471 & 2472 of 2021 and CMP.Nos.15941 & 15944 of 2021
are eligible for exemption in terms of Section 10 B of the Income Tax Act. The
Assessee therefore, filed their returns for the assessment years in question,
declaring their total income and claimed exemption in respect of the income
derived out of the export of computer software. On the basis of the returns filed
by the appellant, an intimation under Section 143 (1) of the Act was issued,
pursuant to which they appeared and submitted their explanations to the
Assessing Officer. After conducting enquiry, the assessment was ultimately
completed on 28.12.2007 and 26.12.2008 determining the total income at
Rs.23,94,79,546/- and Rs.3,39,19,136/- and raising a demand of
Rs.11,61,15,813/- and Rs.1,51,84,851/- in respect of the respective assessment
years 2005-06 and 2006-07 and restricted the relief claimed by the appellant
under Section 10B.
3.2 Aggrieved by the orders of assessment, the appellant filed appeals
before the Appellate Authority, which were disposed of on 22.09.2010 and
29.09.2010. Challenging the same, the appellant went on further appeals before
the Income Tax Appellate Tribunal, which are pending adjudication.
3.3 While so, the appellant received notices dated 28.03.2012 under
Section 148 of the Income Tax Act for re-opening the assessment on the ground
that certain income generated by the appellant has been escaped from the
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W.A.Nos. 2471 & 2472 of 2021 and CMP.Nos.15941 & 15944 of 2021
purview of assessment. The appellant filed its objections to the same on
04.12.2012, which were rejected by orders dated 13.12.2012. The said orders
were challenged in the writ petitions viz., WP.Nos.34985 and 34986 of 2012,
which were disposed of by orders impugned herein. Therefore, the present writ
appeals by the appellant / assessee.
4.On a perusal of the records placed before us, we find that in the writ
petitions viz., WP.Nos.34985 and 34986 of 2012, the appellant has challenged
the orders dated 13.12.2012 passed by the respondent, rejecting the objections
filed by them to the notices issued under section 148. However, during the
pendency of the same, the respondent passed the re-assessment orders on
21.10.2014 under section 143(3) r/w 147, which according to the appellant, are
barred by limitation as prescribed in the Explanation 1 to section 153(2) of the
Act. Feeling aggrieved, the appellant filed WP Nos.28836 and 28837 of 2014 to
quash the reassessment orders, which were ultimately dismissed by the learned
Judge, by order dated 20.07.2021. The said order was put to challenge by the
appellant by filing separate appeals viz., WA.Nos.2527 and 2528 of 2021.
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W.A.Nos. 2471 & 2472 of 2021 and CMP.Nos.15941 & 15944 of 2021
5.Such being the present scenario, we need not go into the impugned order
dated 20.07.2021 passed in WP.Nos.34985 and 34986 of 2012, as the issues
involved herein got merged with the subsequent reassessment orders. Therefore,
we are inclined to dismiss the present writ appeals, however, leaving it open to
the appellant to raise all the grounds available to them in the appeals viz.,
WA.Nos.2527 and 2528 of 2021.
6.With the aforesaid observation, both the writ appeals are dismissed. No
costs. Consequently, connected miscellaneous petitions are closed.
(R.M.D., J.) (M.S.Q., J.)
15.12.2021
av/rsh
Internet : Yes/No
Index : Yes/No
To
The Deputy Commissioner of Income Tax
Media Circle – I
Room No.311, New Block III, 3rd Floor
No.121, Mahatma Gandhi Road
Nungambakkam
Chennai – 600 034
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W.A.Nos. 2471 & 2472 of 2021 and CMP.Nos.15941 & 15944 of 2021
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
av/rsh
WA Nos. 2471 & 2472/2021
15.12.2021
https://www.mhc.tn.gov.in/judis
