Haren Textiles Private Limitedhaving Business Address At Opp. Civil Aviation Department,Near Dahisar Check Naka,Western Express Highway,Dahisar (East) – 400 068 v. Principal Commissioner Of Income-Tax 4, Having His Office At Room

Dusane 1/823 wp 1100.2021.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY APPELLATE JURISDICTION WRIT PETITION NO.1100 OF 2021 Haren Textiles Private Limitedhaving business address at Opp. Civil Aviation Department,Near Dahisar Check Naka,Western Express Highway,Dahisar (East) – 400 068P.A. No. AAACH3166K....Petitioner Vs. 1 Principal Commissioner of Income-Tax 4, having his office at Room No. 629, 6[th] Floor, Aaykar Bhavan, Maharshi Karve Road, Mumbai – 400 020 email : ….Respondent no.1 2. Assistant Commissioner of Income-Tax, Circle 12(2), having his office at Room No. 145, 1[st] Floor, Aaykar Bhavan, Maharshi Karve Road, Mumbai – 400 020 email : ….Respondent no.2 Mr. Jintendra Singh for Petitioner Mr. Sham V. Walve for Respondents-Revenue Dusane 2/823 wp 1100.2021.doc Coram : K.R. SHRIRAM & ABHAY AHUJA, JJ ABHAY AHUJA, JJ Date : 8[th] SEPTEMBER, 2021 JUDGMENT (Per K.R. SHRIRAM, J.) : 1.Petitioner is impugning an order dated 18[th] March, 2021passed by Respondent No. 1, i.e., Principal Commissioner of Income-Tax (PCIT), Mumbai- 4 rejecting a Revision Petition filed under Section264 of the Income Tax Act, 1961 (“The Act”) impugning the orderpassed by the Assessing Officer under Section 270 AA(4) of the Act. 2.Petitioner, who is engaged in the business of manufacturingand selling fabrics and also a trading member in the National StockExchange filed its Return for the Assessment Year 2017-2018 on 31[st]October, 2017 declaring total income of Rs.2,27,11,320/-. RespondentNo. 2, i.e., the Assistant Commissioner of Income-Tax initiated scrutinyassessment by issuing statutory notices under Sections 143(2) and142(1) of the Act. Petitioner replied to these notices from time to timeand also furnished all details and documents. Respondent No. 2 passedan Assessment order dated 19[th] December, 2019 under Section 143 (3) Dusane 3/823 wp 1100.2021.docof the Act determining total income of Petitioner at Rs.7,41,84,730/-.Respondent No. 2 determined book profit under the provisions ofSection 115 (JB) of the Act at Rs.2,19,33,505/-. Following thisassessment order, Respondent No. 2 issued demand notice dated 19[th]December, 2019 under Section 156 of the Act raising a demand ofRs.1,80,14,619/-. As Petitioner found that Respondent No.2 had notcorrectly allowed the Minimum Alternate Tax (M.A.T.) credit available toPetitioner while determining the tax liability, Petitioner filed anapplication dated 6[th] January, 2020 under Section 154 of the Actseeking rectification of the assessment order. Respondent No.2accepted the submissions of Petitioner and granted M.A.T. creditavailable to Petitioner and issued the revised Computation Sheet dated14[th] January, 2020 determining the correct amount of tax liability ofPetitioner. Respondent No. 2 also issued revised notice of demanddated 14[th] January, 2020 under Section 156 of the Act raising demandof Rs.57,356/- payable within 30 days from the service of the saidnotice. Dusane4/823 wp 1100.2021.doc3.Petitioner accepted the order passed by Respondent No. 2under Section 154 of the Act and on 29[th] January, 2020 paid fully thetax demand determined at Rs.57,356/-. This amount was paid. Dusane4/823 wp 1100.2021.doc3.Petitioner accepted the order passed by Respondent No. 2under Section 154 of the Act and on 29[th] January, 2020 paid fully thetax demand determined at Rs.57,356/-. This amount was paid. 4.Thereafter, Petitioner on 30[th] January, 2020 filed anapplication under Section 270 (AA) of the Act in the prescribed FormNo. 68, before Respondent No. 2 seeking immunity from penalty etc.This application was rejected by Respondent No. 2 by an order dated28[th] February, 2020. Aggrieved by this order, Petitioner filed anapplication dated 18[th] December, 2020 before Respondent No.1 underthe provisions of Section 264 of the Act. Respondent No. 1, rejectedPetitioner’s application on the ground that Sub-Section 6 of Section 270(AA) specifically prohibits revisionary proceedings under Section 264 ofthe Act against the order passed by Assessing Officer under Section270 (AA)(4) of the Act. It is this order which is challenged by Petitioner. Mr. Singh submits that there is no such prohibition or bar asheld by Respondent No. 1 and we would agree with Mr. Singh. Dusane 5. It will be useful to reproduce Section 270 (AA) of the Act, which reads as under : 270AA. (1) An assessee may make an application to theAssessing Officer to grant immunity from imposition ofpenalty under section 270A and initiation of proceedingsunder Section 276C or Section 276CC, if he fulfils thefollowing conditions, namely:- ty from imposition oftiation of proceedings (a) the tax and interest payable as per the order ofassessment or reassessment under sub-section (3) ofSection 143 or Section 147, as the case may be, hasbeen paid within the period specified in such notice ofdemand; and (b) no appeal against the order referred to in clause (a) hasbeenfiled. (2) An application referred to in Sub-Section (1) shall bemade within one month from the end of the month inwhich the order referred to in clause (a) of Sub-Section(1) has been received and shall be made in such form andverified in such manner as may be prescribed. (3) The Assessing Officer shall, subject to fulfilment ofthe conditions specified in Sub-Section (1) and after theexpiry of the period of filing the appeal as specified inclause (b) of sub-section (2) of Section 249, grantimmunity from imposition of penalty under Section 270Aand initiation of proceedings under Section 276C or Section 276CC, where the proceedings for penalty underSection 270A has not been initiated under thecircumstances referred to in Sub-Section (9) of the saidSection270A. (4) The Assessing Officer shall, within a period of onemonth from the end of the month in which theapplication under Sub-Section (1) is received, pass anorder accepting or rejecting such application: Provided that no order rejecting the application shall bepassed unless the assessee has been given anopportunityofbeingheard. heard. (5) The order made under Sub-Section (4) shall be final. (6) No appeal under Section 246A or an application forrevision under Section 264 shall be admissible against theorder of assessment or reassessment, referred to inclause (a) of Sub-Section (1), in a case where an orderunder Sub-Section (4) has been made accepting thecation.appli 6. Under Sub-Section 6 of Section 270 AA, no appeal under Section 246 (A) or an application for revision under Section 264 shall be admissible against the order of assessment or re-assessment referredto in Clause (a) of Sub-Section 1, in a case where an order under Sub-Section 4 has been made accepting the application. This only means Dusane heard. (5) The order made under Sub-Section (4) shall be final. (6) No appeal under Section 246A or an application forrevision under Section 264 shall be admissible against theorder of assessment or reassessment, referred to inclause (a) of Sub-Section (1), in a case where an orderunder Sub-Section (4) has been made accepting thecation.appli 6. Under Sub-Section 6 of Section 270 AA, no appeal under Section 246 (A) or an application for revision under Section 264 shall be admissible against the order of assessment or re-assessment referredto in Clause (a) of Sub-Section 1, in a case where an order under Sub-Section 4 has been made accepting the application. This only means Dusane 7/823 wp 1100.2021.docthat when an assessee makes an application under Sub-Section 1 ofSection 270 AA and such an application has been accepted under Sub-Section 4 of Section 270 AA, the assessee cannot file an appeal underSection 246 (A) or an application for revision under Section 264against the order of assessment or re-assessment passed under Sub-Section 3 of Section 143 or Section 147. This does not provide for anybar or prohibition against the assessee challenging an order passed bythe Assessing Officer, rejecting its application made under Sub- Section1 of Section 270 AA. The application before Respondent No.1 was an orderchallenging an order of rejection passed by Respondent No. 2 of anapplication filed by Petitioner under Sub-Section 1 of Section 270 AAseeking grant of immunity from imposition of penalty and initiation ofproceedings under Sub-Section 276( C) or Section 277 (CC).7.Therefore, in our view, Respondent no. 1 was not correct inrejecting the application on the ground that there is a bar under Sub-Section 6 of Section 270(AA) in filing such application. The impugnedorder has to be set aside and it is hereby set aside. Dusane 8/823 wp 1100.2021.doc 8.The matter is remanded back to Respondent No. 1 toconsider de-novo, the application filed by Petitioner under Section 264impugning the order passed by the Assessing Officer under Sub-Section4 of Section 270 AA and pass such orders as he deems fit in accordancewith law after granting personal hearing to Petitioner. If Respondent No. 1 requires any further documents to besubmitted by Petitioner, he shall cause to be served a communicationupon Petitioner atleast one week before the date fixed for personalhearing. 9. Ordered accordingly. Petition disposed. 10.Respondent No.1 shall complete the process mentionedabove in paragraph 8 and pass a reasoned order within six weeks fromtoday. ( ABHAY AHUJA, J.) ( K.R. SHRIRAM, J.)