Madras High Court
Siva Industries & Holdings Limited vs The Assistant Commissioner Of Income ... on 12 June, 2025
TCA No.288 of 2012
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12.06.2025
CORAM :
THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE SUNDER MOHAN
TCA No.288 of 2012
and M.P.No.1 of 2012
Siva Industries & Holdings Limited
(Formerly known as Sterling Infotech Ltd)
327, Anna Salai, Teynampet
Chennai-600 018
Appellant
Vs
The Assistant Commissioner of Income Tax
Company Circle VI(4)
Chennai-600 034
Respondent
Prayer: Appeal filed under Section 260A of the Income Tax Act, 1961
against the order of the Income Tax Appellate Tribunal “A” Bench, Chennai,
dated30.04.2012 in ITA No.1917/Mds/2011.
__________
Page 1 of 6
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/06/2025 04:56:41 pm )
TCA No.288 of 2012
For Appellant: Ms.Vandana Vyas
For Respondent: Mr.J.Narayanasamy
JUDGMENT
(Delivered by the Hon'ble Chief Justice)
The appeal impugns the order dated 30.04.2012 passed by the
Income Tax Appellate Tribunal (ITAT) “A”Bench, Chennai.
2. Appeal was admitted on 20.09.2012 on the following substantial
questions of law:
“1.Whether in the facts and circumstances of the case, the
respondent is right in law in reopening the assessment by
issuing a notice under Section 148 of the Act when the
time limit for passing an order under Section 143(3) of the
Act had not expired?
2.Whether, in the facts and circumstances of the case, the
Tribunal is right in law in not adjudicating on the ground
raised by the appellant that the respondent has failed to
issue the mandatory notice required under Section 143(2)
of the Act?
__________
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/06/2025 04:56:41 pm )
3.Whether in the facts and circumstances of the case, the
Tribunal is right in ignoring its own order for the earlier
Assessment Year 2006-07?
4.Whether in the facts and circumstances of the case, the
Tribunal is right in applying the provisions of Section 14A
of the Act, where no exempt income was earned by the
appellant?”
3. One of the issues raised in the appeal is that the assessing officer
has erred in not issuing the mandatory notice under Section 143(2) of the
Income Tax Act, 1961 (the Act) before completing the assessment under
Section 143(3) read with Section 147 of the Act.
4. Shri Narayanasamy submitted that this issue has not been
answered by the Tribunal and, therefore, the matter be remanded to the
Tribunal.
5. In our view, it is not required to be remitted to the Tribunal,
because the indisputable position is that such notice was not issued.
Assessee had raised this issue even before the Dispute Resolution Panel
(DRP) as per the direction given on 8th September, 2011.
__________
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/06/2025 04:56:41 pm )
6. Law on this is very clear. As held by the Co-ordinate Benches of
this Court in Sapthagiri Finance & Investments v. Income-tax Officer,
Ward I(4), Kanchipuram1 and Commissioner of Income-tax, Chennai v.
Alstom T & D India Limited2, the completion of assessment proceedings
under Section 143(3) read with Section 147 of the Act without issuance of
notice under Section 143(2) of the Act was bad in law. The Court held that
when there was a failure on the part of the revenue in complying with the
procedure laid down under Section 143(2) of the Act, the assessment had to
fail. The Question Nos.1 to 3, as framed on 20th September, 2022, are
answered in favour of assessee.
7. As regards Question No.4, it goes on merits. Once we have held
that re-opening under Section 148 of the Act itself was bad, the question of
going into merits does not arise. Question No.4 is answered accordingly.
1 [2012] 25 taxmann.com 341 (Mad.)
2 [2014] 45 taxmann.com 424 (Madras)
__________
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/06/2025 04:56:41 pm )
Appeal is allowed. There shall be no order as to costs. Consequently,
interim application is closed.
(K.R.SHRIRAM, CJ.) (SUNDER MOHAN, J.)
12.06.2025
Index : Yes/No
Neutral Citation : Yes/No
bbr
To:
1. The Assistant Registrar
Income Tax Appellate Tribunal
“A” Bench, Chennai.
2. The Commissioner of Income Tax (A)-V
Chennai.
3. The Income Tax Officer (OSD)
Company Range V(3)
Chennai
__________
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/06/2025 04:56:41 pm )
THE HON'BLE CHIEF JUSTICE
AND
SUNDER MOHAN,J.
bbr
12.06.2025
__________
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/06/2025 04:56:41 pm )
