Deepika Housing & Enterprisesrep By Its v. The Joint Commissioner Of Income Tax Non-Corporate Range – 13 Room

Deepika Housing & EnterprisesRep by its Partner Mr.Dinesh Kumar37, (Old 19), Bajanai Koil StreetChoolaimedu, Chennai – 600 094... Petitioner ..Vs.. 1.The Joint Commissioner of Income Tax Non-corporate Range – 13 Room-310, New Block 121 MG Road, Chennai-34 2.Income Tax Officer Non-corporate Ward – 13(3) Chennai-600 034 .. RespondentsPrayer:Writ Petition filed under Article 226 of the Constitutionof India, praying to issue a Writ of Certiorari and call for therecordsoftheimpugnedorderinF.No.144ADirections/JCIT20/2015-16 of the first respondent dated19.03.2016 and quash the same. Heard elaborately Mr.B.Ramana Kumar, learned counselappearing for the petitioner and Mr.M.Swamination, learnedSenior Standing Counsel appearing for the respondent and withthe consent of the either side, the writ petition itself istaken up for final disposal. https://hcservices.ecourts.gov.in/hcservices/ 2.The petitioner is a partnership firm engaged in thebusiness of engineering works, builders and developers ofresidential properties. For the assessment year 2013-14, thepetitioner firm filed its return of income on 26.09.2013,admitting a total income of Rs.12,62,277/-. This case wasselected for scrutiny under Section 143(2) of the Income Tax Actand notice was issued on 05.06.2015. 3.During the course of hearing, the petitioner is said tohave clarified to certain issues relating to opening work inprogress brought forward from the previous assessment year 2012-13 to the assessment year 2013-14 as Rs.4,11,36,009/-. For theassessment year 2012-13, it was stated that the figure ofRs.1,75,56,500/- was shown as work in progress as on 31.03.2012in the e-return which is filed by the petitioner. The petitioneris said to have clarified that the figure as shown in theopening work in progress for the assessment year 2013-14 is thecorrect value of the work in progress and the variation ofRs.2,35,79,509/- was due to the various compensating errorswhile uploading the e-return for the year 2012-13. Thisaccording to the petitioner is an inadvertent error and hesought to explain the same to the Assessing Officer. 4.It is the further case of the petitioner that for theassessment year 2012-13, the balance as per the accountsmaintained by the Tally software may be adopted as against thee-return figures which are not in accordance with the Tallyaccounts. Further, where the accounts as per the tally accountsare taken the compensating errors would be rectified. There wasalso an alternate plea raised by the petitioner in terms ofSection 145 of the Act. 5.The petitioner, thereafter filed an application beforethe Joint Commissioner on 11.01.2016 under Section 144A of theAct. Along with the said application, the petitioner enclosed acopy of the letter addressed by them to the Assessing Officerand requested for suitable directions to the Assessing Officerwith regard to the assessment year 2013-14. In the letter givento the Assessing Officer, the petitioner furnished the detailsregarding the construction receipts, sale of UDS, details ofbreak up of construction material and expenses project wise,business promotion with supporting vouchers, bank charges withinterest, details of unsecured loans along with pan numbersetc., details of unsecured loans obtained from financiers alongwith pan numbers etc., details of sundry creditors along withpan numbers and details of advance received from the customersalong with the name and pan numbers. 6.The first respondent granted an opportunity of personalhearing to the petitioner and they were represented by their https://hcservices.ecourts.gov.in/hcservices/ 6.The first respondent granted an opportunity of personalhearing to the petitioner and they were represented by their https://hcservices.ecourts.gov.in/hcservices/ authorized representative who had also filed the writtensubmissions on 22.02.2016. The first respondent has consideredthe submissions and has passed an order on 19.03.2016. Thepetitioner has challenged the said order in this writ petitioncontending that though several issues were raised by thepetitioner, the first respondent without considering andappreciating the submissions made by the petitioner had issuedcertain directions to the Assessing Officer which are infactcounter productive and would be gravely prejudicial to theinterest of the petitioner. 7.The learned counsel for the petitioner submitted thatsince the Joint Commissioner has not issued directions on theother issues requested by the petitioner, the Court may directthe other issued to be considered by the Joint Commissioner.Furthermore, it is submitted that since the Joint Commissionerbeing the superior officer and he having not issued directionsto the Assessing Officer on the other issues, the AssessingOfficer will fail to take into consideration the other issuesraised by the petitioner. 8.Section 144A of the Act deals with the power of the JointCommissioner to issue directions in certain cases. The JointCommissioner on his own motion or on reference made to him bythe Assessing Officer or on application by the assessee, callfor and examine the record of any proceedings in which anassessment is pending and if he considers that, having regard tothe nature of the case or the amount involved or for otherreason, it is necessary or expedient so to do, he may issue suchdirections as he thinks fit for the guidance of the AssessingOfficer to enable him to complete the assessment and suchdirections shall be binding on the Assessing Officer. 9.Therefore, it is submitted that the Assessing Officerwill not consider the other issues which the petitioner hasraised. After some argument, the learned counsel for thepetitioner prays that they may be permitted to withdraw theapplication filed under Section 144A of the Act and are willingto go before the second respondent/Assessing Officer and placeall points. 10.The learned counsel for the respondent submitted thatthe petition has been considered and orders have been passed. 11.In my view, no prejudice would be caused if thepetitioner is permitted to approach the Assessing Officer andraise all the issues. In fact Section 144A is a provision whichempowers the Joint Commissioner to give guidance to theAssessing Officer to enable him to complete the assessment.Thus, the ultimate object to be achieved is to complete theassessment. Therefore, if the petitioner is ready and willing to appear before the Assessing Officer and cooperate in theassessment proceedings, that would be in the interest ofrevenue and sufficient compliance of the statutory provisions. 12.Considering the peculiar facts and circumstances of thecase, the petitioner is permitted to withdraw the applicationfiled before the first respondent dated 11.01.2016 under Section144A of the Act and consequently, the impugned order dated19.03.2016 is set aside. The observations made therein isvacated and the petitioner is directed to appear before thesecond respondent and raise all the issues before the secondrespondent, who shall consider the same independently,uninfluenced by any observations contained in the order passedby the first respondent dated 19.03.2016. 13.The petitioner is directed to appear before the secondrespondent/Assessing Officer within a period of two weeks fromthe date of receipt of a copy of this order, to enable him toproceed further with the assessment. 13.The petitioner is directed to appear before the secondrespondent/Assessing Officer within a period of two weeks fromthe date of receipt of a copy of this order, to enable him toproceed further with the assessment. 14.The writ petition is disposed of accordingly.Consequently, the interim order stands vacated and themiscellaneous petitions are closed. No costs. -s/d-Assistant Registrar(CSII)True Copy Sub-Assistant Registrar To1.The Joint Commissioner of Income Tax Non-corporate Range – 13 Room-310, New Block 121 MG Road, Chennai-34 2.Income Tax Officer Non-corporate Ward – 13(3) Chennai – 600 037. +1 cc to Mr.B.Ramanakumar Advocate sr.31775/16+1 cc to Mr.M.Swaminathan Advocate sr.32113/16 W.P.No.11650 of 2016and W.M.P.Nos.10056 & 10057 of 2016 ca(co)aa11/07/2016