14824/2021 Of Gyan Bharti Shiksha And Prashikshan Sansthan v. The Principal Chief Commissioner Income Tax, Bihar And Jharkhand, Central Revenue Building, Veerchand Patel Patha, Patna

IN THE HIGH COURT OF JUDICATURE AT PATNACivil Writ Jurisdiction Case No.14824 of 2021 ====================================================== Gyan Bharti Shiksha and Prashikshan Sansthan, a society registered undersocieties Act, 1861 office at - Jagdish Lok Apartment 1st Floor, West BoringCanal Road, Patna - 800001, through its secretary Ashok Kumar Singh, agedabout 51 years, Gender - Male, son of - Chandrika Singh, Resident of - Flatno. 201 Pratap Palace Apartment, Krishinagar, A.G. colony, Near ShivMandir, Ward No. 5, Phulwari Patna, 800025. ... ... Petitioner/s Versus 1.The Principal Chief Commissioner Income Tax, Bihar and Jharkhand,Central Revenue Building, Veerchand Patel Patha, Patna.Central Revenue Building, Veerchand Patel Patha, Patna. 2.The Commissioner of Income Tax, Exemption, Central Revenue BuildingVeerchand Patel Patha, Patna.Veerchand Patel Patha, Patna. 3.Additional / Joint/Deputy/Assistant Commissioner/Income Tax Officer,National e-Assessment Center, Delhi.National e-Assessment Center, Delhi. ... ... Respondent/s ====================================================== Appearance :For the Petitioner/s : Mr.Krishna Mohan Mishra, Advocate Mr. Prasoon Kumar, Advocate : Mrs.Archana Sinha, Advocate. For the Respondent/s ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMARORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 02-09-2021 Petitioner has prayed for the following relief(s):- “i. To quash and set aside the assessment order aswell as demand notice passed by respondent no. 3dated 04.03.2021 whereby and whereunder the saidrespondent has computed income of Rs.8,63,70,658/- and has created demand of Rs.4,20,47,780/- even after accepting the return ofincome which filed by petitioner. The assessment ofincome and creation of demand thereafter, arbitrary, unreasonable and amount to harassment. ii. To hold and declare that the trust is registeredunder section 12AA and also under Section 80G ofthe Income Tax Act, as such, the grant in aids orcontribution received by the society is exemptedfrom levy of tax under section 11 of the Income TaxAct. iii. To further direct the respondent to not to makerecovery as the demand were created erroneouslyand without given effect of 80G and 12AAcertificate. iv. To pass any writ/writ, order/orders,direction/directions as deemed fit and proper.” We find the action of the respondents-Revenue in issuing the notice of demand to be absolutely without non-application of mind, de hors of the legal provision. There is a limit to which an assessee can be subjected to harassment and pushed into litigation. Significantly,as against the declared income of Rs. 1,86,423/-, which stoodaccepted vide assessment order dated 04.03.2021 (Annexure-P1, page 10), the Revenue issued notice of demand computingthe income to be of Rs. 4,20,47,780/-. The demand notice isissued not by a low lying clerk but by an officer above the levelof Additional Commissioner of Income Tax, National e-Assessment Centre. Is this how the department is supposed tofunction? This mistake is not bonafide. As such, we quash the demand notice dated04.03.2021, Annexure-1, in relation to the assessment year2018-19 with cost quantified at Rs. 10,000/- to be recoveredfrom the officer concerned who had processed the case andissued such notice of demand. The cost be paid to the petitionerwithin a period of two weeks from today. Liberty reserved to the Revenue to generate afresh notice of demand in terms of the assessment carried outvide order dated 04.03.2021 already passed. The petition stands disposed of. Interlocutory application, if any, shall also stand disposed of. (Sanjay Karol, CJ) ( S. Kumar, J) Sujit/Ashwini AFR/NAFRCAV DATEUploading Date10.09.2021Transmission Date