Bhola Ram Steels Private Limited ... vs Principal Commissioner Of Income ...
2021 Latest Caselaw 42 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA


                       Civil Writ Jurisdiction Case No.24983 of 2019
     ======================================================

Bhola Ram Steels Private Limited Company incorporated under the Companies Act, 1956, having its office at Nashri Ganj, Danapur, Patna- 800012, Bihar through its Accounts Incharge, Sunil Kumar Thakur, S/o Late Shashikant Thakur, Resident of Mithila Colony, Nasriganj, P.O.- Bataganj, P.S.- Danapur, Patna- 800018.

... ... Petitioner/s Versus

1. Principal Commissioner of Income Tax-1 Patna, 2nd Floor, Central Revenue Building, Beer Chand Patel Path, Patna.

2. The Additional/Joint Commissioner of Income Tax, Range-1, 3rd Floor, Lok Nayak Jai Prakash Bhawan, Dak Bungalow Chowk, Patna.

3. The Deputy/Assistant Commissioner of Income Tax, Circle-2, 4th Floor, Lok Nayak Jai Prakash Bhawan, Dak Bungalow Chowk, Patna.

4. The Income Tax Officer, Ward 2(1), Patna.

... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr.Ajay Kumar Rastogi, Advocate For the Respondent/s : Mr.Archana Sinha @ Archana Shahi, Advocate ======================================================

CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE ANJANI KUMAR SHARAN ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Patna High Court CWJC No.24983 of 2019 dt.06-01-2021

Date : 06-01-2021 Petitioner has prayed for the following relief(s):-

"i) For issuance of a writ of certiorari or any other appropriate writ quashing the Notice u/s 148 of the Income Tax Act, 1961 ('the Act") dated 30.03.2019 (Annexure-'1'), for assessment year 2012-13 issued by the Assistant Commissioner of Income Tax, Circle-2, Patna (the Respondent No. 3 herein and also referred to as the "Assessing Officer" hereinafter) initiating proceedings for reassessment against the Petitioner as being wholly arbitrary, illegal, without jurisdiction as the same has been initiated in absence of any finding attributing failure on part of the petitioner in disclosing fully and truly all material facts necessary for assessment and on mere change of opinion.

ii) For issuance of an appropriate writ quashing the preliminary order dated 13.11.2019 (Annexure-'2') passed in pursuance of the said Notice by Respondent No. 4 whereby the petitioner's objection on the issue of assumption of his jurisdiction has been rejected on the ground of being wholly arbitrary, illegal and without jurisdiction.

iii) For issuance of an appropriate writ quashing the notice u/s 142(1) dated 23.10.2019 (Annexure-'3') by which the petitioner has been directed to furnish certain details along with connected documents as the same is erroneous and without any basis.

Patna High Court CWJC No.24983 of 2019 dt.06-01-2021

(iv) For issuance of any other writ, order or direction which your Lordships may deem fit and proper in the facts and circumstances of the case."

2. Mrs. Archana Sinha, learned counsel for the Revenue,

invites our attention to the judgment dated 18.06.2019 passed by a

Coordinate Bench of this Court in CWJC No. 17412 of 2017,

titled as Satyendra Kumar Construction Pvt. Ltd. Vs.

Commissioner of Income Tax-II & Ors.. She points out that in

somewhat similar circumstances, the Court has directed the writ-

petitioner to appear before the authority, highlighting all the issues

raised in the present petition, leaving for the authorities to decide

the matter, per law.

3. The Judgment dated 18.06.2019, in toto, is extracted

as under:-

"Mr. D.V. Pathy, learned counsel for the petitioner while questioning the proceedings initiated under Section 148 of the Income Tax Act, 1961 by service of notice dated 31.03.2017 impugned at Annexure 10 series submits that the issue which is raised in the writ petition is covered by the judgments of this Court and Supreme Court and which does not permit the Statutory Authority to reopen the matter repeatedly. According to Mr. D.V. Pathy, it is for the third time that the assessment has been reopened in the present case.

Patna High Court CWJC No.24983 of 2019 dt.06-01-2021

Having heard learned counsel for the parties and considering that it is at the very stage of issuance of notice that the petitioner has rushed to this Court on the grounds noted above, we are certainly not persuaded to express ourselves at the notice stage rather would leave the matter open for discussion before the Statutory Authority who shall apply his mind to the objections raised by the petitioner on the reopening of the proceeding in the backdrop of the legal position settled and take the matter to its logical end within three months from the date of receipt/production of a copy of this order.

With this observation, this writ petition is disposed of."

4. On the other hand, Shri A.K. Rastogi, learned counsel

for the petitioner refers to and relies upon several decisions

rendered by Hon'ble the Apex Court as also different

constitutional Courts of the land.

5. Having gone through the record, and more

specifically the notice dated 5th of September, 2019, we are of the

considered view that interest of justice would be best met if the

issue, more so, in view of certain disputed questions of fact, is left

to be best decided by the authority in terms of the view already Patna High Court CWJC No.24983 of 2019 dt.06-01-2021

taken by a Coordinate Bench of this Court in Satyendra Kumar

Construction Pvt. Ltd. (supra).

6. As such, we dispose of the present petition in the

following terms:

(a) petitioner shall appear before the appropriate

authority on 21st of January, 2021, when a date shall be fixed for

further hearing of the matter;

(b) parties shall place the entire material before the

appropriate authority on the next date of hearing;

(c) since the matter pertains to the Assessment Year

2012-13 and the petitioner has been assessed twice i.e. in the year

2016 and 2018, we direct that the proceedings be positively

concluded within a period of two months;

(d) however, we clarify that preliminary objection on the

jurisdictional issue, more so in view of first proviso to sub-section

(1) of Section 147 of the Income Tax Act, 1961 shall be decided

first;

(e) needless to add, opportunity of hearing in person

shall be afforded to all concerned;

(f) liberty reserved to the petitioner to take recourse to

such remedies as are otherwise available in accordance with law Patna High Court CWJC No.24983 of 2019 dt.06-01-2021

including filing a fresh petition before this Court on the same and

subsequent cause of action.

7. The petition stands disposed of in the aforesaid terms.

8. Interlocutory Application(s), if any, shall also stand

disposed of.

(Sanjay Karol, CJ)

(Anjani Kumar Sharan, J) spal/-

AFR/NAFR
CAV DATE
Uploading Date          08.01.2021
Transmission Date