Mytrah Energy Limited vs Union Of India
2024 Latest Caselaw 2791 Tel

Telangana High Court

Mytrah Energy Limited vs Union Of India on 23 July, 2024

                      THE HONOURABLE SRI JUSTICE SUJOY PAUL

                                          AND

         THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO

                           WRIT PETITION No.18368 of 2024

       ORDER (per Hon'ble Sri Justice Sujoy Paul)

Sri Avinas Desai, learned counsel representing Sri TPS Harsha,

learned counsel for the petitioner and Sri Vijhay K Punna, learned

Senior Standing Counsel for Income Tax Department, appears for the

respondent-Income Tax Department.

2. With the consent, finally heard.

3. During the course of hearing, learned counsel for the parties

fairly admitted the following facts:

i) The draft assessment order was passed on 11.03.2024.

ii) Time limit for filing objections or acceptance (i.e.30 days) as per Section 144 C (2) was upto 11.04.2024.

iii) Time period within which the Assessment order was required to be passed (one month from end of month of filing objections or acceptance) as per Section 144 C (4) was upto 31.05.2024.

iv) The assessment order was admittedly passed on 11.06.2024.

4. Learned Senior Counsel by placing reliance on the judgment of

Bombay High Court in Renaissance Services BV v. Deputy

Commissioner of Income Tax (International Taxation) 1 submits

that the Division Bench of Bombay High Court opined that if

2022 SCC OnLine Bom 11937

assessment order is not passed within the statutory limit prescribed

under Sub-Section 4 of Section 144C of the Income Tax Act, 1961 (for

short "the Act"), the order deserves to be set aside.

5. Learned Senior Standing Counsel for respondent-Income Tax

Department did not dispute the aforesaid facts, but, supported the

impugned order.

6. We are in respectful agreement with the view taken by the

Bombay High Court in Renaissance Services BV's case (supra) which

is inconsonance with statutory mandate ingrained in Section 144C and

Sub-section (4) of Section 144 C of the Act. Since the assessment

order is not passed within the prescribed permissible statutory

limitation, the same cannot sustain judicial scrutiny. Resultantly, the

impugned order dated 11.06.2024 is set aside.

7. The Writ Petition is allowed. No costs.

Interlocutory applications, if any pending, shall also stand

closed.

_____________ Sujoy Paul, J

_______________________________ Namavarapu Rajeshwar Rao, J

23.07.2024 nvl/ns