> Assesslnent Order Shor-Rld Be Set Aside v. Union Of India

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) FRIDAY ,THE NINETEENTH DAY OF NOVEMBERTWO THOUSAND AND TWENTY ONE PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYANANDTHE HONOURABLE DR. JUSTICE CHILLAKUR SUMALATHA WRIT PETITION NO: 2962'l OF 202'l Between: TNR Constructions lndia Pvt. Ltd., Rep by [t4anaging Director, TheratipallyNarsimha Rao S/o T Venkataiah, Plot. No. 220, Vasavi Colony, Road No.9,Kothapet, Hyderabad-500035. ...PETITIONER AND 1Additional/JoinVDeputy/Assistant Commissioner of lncome Tax/income TaxOfficer, National Faceless Assessment Centre, Delhi, lncome-tax Department,Itilinistry of Finance, Room No. 401 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003. (Formerly known as National e-Assessment Centre) 2.Deputy/Assistant Commissioner of lncome{ax, Circle 2(1 ), Signature Towers,Opp, Botanical Gardens, Kondapur, Hyderabad-500084. (Earlier [jurisdiction]Circle 2(2), now merged in Circle 2(1))Opp, Botanical Gardens, Kondapur, Hyderabad-500084. (Earlier [jurisdiction]Circle 2(2), now merged in Circle 2(1))JPrinciple Commissioner of lncometax 2, lT Towers, Masab Tank, Hyderabad-500004.500004. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may be pleased toissue a writ, order or direction, more particularly one in the nature of Writ ofMandamus, declaring the impugned ex-parte assessment order passed by the 1stRespondent, vide order bearing Document ldentification No.(DlN)ITBA/AST/S/143(3)12021-2211032596400 (1), dt. 22.04.2021, as illegal, arbitrary andviolative of Art. 14 and 265 of the Constitution of lndia and direct the 1st Respondentto reframe the assessment after providing the Petitioner a reasonable opportunity ofbeing heardcircumstances stated in the affidavit filed therewith, the High Court may be pleased toissue a writ, order or direction, more particularly one in the nature of Writ ofMandamus, declaring the impugned ex-parte assessment order passed by the 1stRespondent, vide order bearing Document ldentification No.(DlN)ITBA/AST/S/143(3)12021-2211032596400 (1), dt. 22.04.2021, as illegal, arbitrary andviolative of Art. 14 and 265 of the Constitution of lndia and direct the 1st Respondentto reframe the assessment after providing the Petitioner a reasonable opportunity ofbeing heard lA NO: 1 OF 2021 Petition under Section 151 CPC praying that in the circumstances stated in theaffidavit filed in support of the petition, the High Court may be pleased to stay theimpugned ex-parte assessment order bearing Document ldentification No. (DlN)ITBA/AST/S/143(3)12021- 2211032596400 (1), dt. 22.04.2021 , and may pass suchother order/orders as the Honourable Court deems fit and proper in the interests ofsubstantial [justice, ]as otherwise the Petitioner would be put to irreparable loss andinjury.affidavit filed in support of the petition, the High Court may be pleased to stay theimpugned ex-parte assessment order bearing Document ldentification No. (DlN)ITBA/AST/S/143(3)12021- 2211032596400 (1), dt. 22.04.2021 , and may pass suchother order/orders as the Honourable Court deems fit and proper in the interests ofsubstantial [justice, ]as otherwise the Petitioner would be put to irreparable loss andinjury. Counsel for the Petitioner:SRl. DUNDU MANMOHAN Counsel forthe Respondents: MS. K MAMATA, SC FOR lT The Court made the following: 'I'H[, lONl]1-1. Sltl .lI S l ICI: t,lJ.-\l- l]llL \ A:\ANI)-IIII HO\, ILE l)lt. Jt,'STIClr Cl{lLI.AKt lt SL.iMAI .,\TIL\ _uu_429621 [0[2!21] O ll f) E R [(Pel ]the tlon'ble Sri Justice Uii:rl llhurant Heard Mr.l\ [anmohan Dandu, learned counsel for the petitioner andMs. K. Mamatha 3howdary, learned Senior Standing Counsel for IncomeTax. Counsel for the Petitioner:SRl. DUNDU MANMOHAN Counsel forthe Respondents: MS. K MAMATA, SC FOR lT The Court made the following: 'I'H[, lONl]1-1. Sltl .lI S l ICI: t,lJ.-\l- l]llL \ A:\ANI)-IIII HO\, ILE l)lt. Jt,'STIClr Cl{lLI.AKt lt SL.iMAI .,\TIL\ _uu_429621 [0[2!21] O ll f) E R [(Pel ]the tlon'ble Sri Justice Uii:rl llhurant Heard Mr.l\ [anmohan Dandu, learned counsel for the petitioner andMs. K. Mamatha 3howdary, learned Senior Standing Counsel for IncomeTax. 2. ln this w it petition, petitioner has challenged the assessment orderdated 22.04.2021 rassed by the National e-Assessrnent Centrc. Delhi i.e.,responder.rt No.l rnder Section 144(3) read with Section 144 B of thc'lncome tax Act, l' 6l (briellv ['thc ]Act' hercinallcr) fbr thc assessrncnt [ye ]ar2018- r9. 3. Petitione , which is a company, had hled return of income onlinefor the said asser sment year on 3 i . I 0.201 8 declaring total income olRs.1,47,83,110.00 (Rupees one crore, forty seven lakhs, eighty threethousand, one hun, red and ten only). The case was selected lor CompleteScrutiny on lhe is: ue ol whether there was real estate business with highclosing stock and lr rge inclease in unsecured loans dr-rring the year. 4. By the i:rpugned order ol assessmcnt. the asscssed incorre wasquantilled at 41,85,35,300.00 (llupees lilly one crores, eighty irve lakhs.I thirty five thousanc, and three hundred only), and directions were issued fbr initiating penalty proceedings under Section 274 read with Section 27lAACof the Act. 5. According to learned counsel for the petitioner, petitioner had sought for ten days time to reply to the notice issued, but exactly on the tenthday, the impugned order came to be passed, without waiting lor thcpetitioner's reply. I Ic, therclbre, subrnits that reasonable opportunity ol'hearing was not granted 10 the petitioner and, therelore, the irnpugnedhearing was not granted 10 the petitioner and, therelore, the irnpugnedassesslnent order shor-rld be set aside 5.1. Leamed counsel for the petitioner has also relied upon a recenlorder passed by this couft in M/S SfiI DIYARAKA BALAJIDEVELOPERS v. UNION OF INDIA|. 6. On due consideration, we are not inciined to entertain the writpetition inasmuch as, petitioner has got adequate and efficacious alternativeremedv of filing appeal be l'ore the Cornmissioner of Incorne Tax (Appeals)under Section 24(r A ol- the Act. Supreme Court has also clarified that theperiod fi'orn 15.03.2020 to 02.10.2021 should be excluded rvhile calculatingperiod ol linritation in vicw of Covid - l9 pandernic. Furlhcr, thc f'acts inM/s Sri Dwaraka Balaji Developers (supra) are distinguishable from the, present case. In the lig rt of [the ][above, ][petitioner ][is ][relegated ][to ][the ][fbrum ][of] appeal before the Cr [mmissioner of ][Income ][Tax (Appeals)'] 8. Subject to :he [above, ][writ ][petition ][is ][disposed ][of'] 9. Interlocul try [applications pending, ][if ][any, ][shall ][stand ][closed' No] order as to [c ]osts SD/..B.SATYAVATHIASSISTANT REGISTRAR,TRUE COPY//qSECTION OFFICER To, 1. Additional/JoinV )eputy/Assistant Commissioner of lncome Tax/income TaxOfficer, National Faceless Assessment Centre, Delhi, lncome-tax Department,Ministry of Finar:e, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal NehruStadium, Delhi-'10003. (Formerly known as National e-Assessment Centre)Officer, National Faceless Assessment Centre, Delhi, lncome-tax Department,Ministry of Finar:e, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal NehruStadium, Delhi-'10003. (Formerly known as National e-Assessment Centre) 2. Deputy/Assistan Commissioner of lncometax, Circle 2(1), Signature Towers,Opp, Botanical [( ][,ardens, ]Kondapur, Hyderabad-500084. (Earlier [jurisdiction]Ctcle 2(2), now nerged in Circle 2(1))Opp, Botanical [( ][,ardens, ]Kondapur, Hyderabad-500084. (Earlier [jurisdiction]Ctcle 2(2), now nerged in Circle 2(1)) 3. Principle Comm ;sioner of lncome{ax 2, lT Towers, l\,4asab Tank, Hyderabad-500004500004 4. One CC to Sri. I undu Manmohan, Advocate 2. Deputy/Assistan Commissioner of lncometax, Circle 2(1), Signature Towers,Opp, Botanical [( ][,ardens, ]Kondapur, Hyderabad-500084. (Earlier [jurisdiction]Ctcle 2(2), now nerged in Circle 2(1))Opp, Botanical [( ][,ardens, ]Kondapur, Hyderabad-500084. (Earlier [jurisdiction]Ctcle 2(2), now nerged in Circle 2(1)) 3. Principle Comm ;sioner of lncome{ax 2, lT Towers, l\,4asab Tank, Hyderabad-500004500004 4. One CC to Sri. I undu Manmohan, Advocate undu Manmohan, Advocate 5. One CC to Ms. I Mamata, SC for lT 6. Two CD Copies. ,*t7. 7. One Spare Copl . HIGH COURT DATEAtlgll'112021 ORDERWP.No.29621 of 2021 Disposing of t re WPWithout costs E [srA74:]ItL"1 n [DEC20?!]\..1.'{