Kanniah Kumar v. The Deputy Commissioner Of Income Tax, Non Corporate Circle - 19(1)

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 25.03.2022 CORAM THE HONOURABLE MR.JUSTICE M.DHANDAPANI W.P.Nos.6961 & 6964 of 2022W.M.P.Nos.6998 & 6999 of 2022 Kanniah Kumar ... Petitioner in both W.Ps Vs. 1.The Deputy Commissioner of Income Tax, Non Corporate Circle - 19(1), 121, Nungambakkam High Road, Chennai - 600 034. 2.The Additional Commissioner of Income Tax, Range - 19, 121, Nungambakkam High Road, Chennai - 600 034. 3.The National Faceless Assessment Centre, New Delhi. ... Respondents Prayer: Writ Petition filed under Article 226 of theConstitution of India to issue a Writ of Mandamus directing thethird respondent herein to re-transfer the case file of thepetitioner relating to the re-assessment proceedings for AY2017-18, AY 2018-19 respectively, back to the file of the firstrespondent and further direct the second respondent to disposeof the petition filed by the petitioner under Section 144A ofthe Income Tax Act, prior to the completion of the re-assessmentproceedings by the first respondent. For petitioner : Mr.Waraon and Sai rams(in both W.Ps) For Respondents : M/s.Hema Muralikrishnan Senior Standing Counsel (in both W.Ps) COMMON ORDER The petitioner has filed this petition seeking direction tothe third respondent herein to re-transfer the case file of thepetitioner relating to the re-assessment proceedings for AY https://hcservices.ecourts.gov.in/hcservices/ 2017-18, AY 2018-19 respectively, back to the file of the firstrespondent and further direct the second respondent to disposeof the petition filed by the petitioner under Section 144A ofthe Income Tax Act, prior to the completion of the re-assessmentproceedings by the first respondent. 2. M/s.Hema Murali Krishnan, Senior Standing Counsel takesnotice for the respondents. In view of the limited relief soughtfor in these petitions and on the consent expressed by thelearned counsel appearing on either side, this petition istaken up for final disposal. The petitioner has filed this petition seeking direction tothe third respondent herein to re-transfer the case file of thepetitioner relating to the re-assessment proceedings for AY https://hcservices.ecourts.gov.in/hcservices/ 2017-18, AY 2018-19 respectively, back to the file of the firstrespondent and further direct the second respondent to disposeof the petition filed by the petitioner under Section 144A ofthe Income Tax Act, prior to the completion of the re-assessmentproceedings by the first respondent. 2. M/s.Hema Murali Krishnan, Senior Standing Counsel takesnotice for the respondents. In view of the limited relief soughtfor in these petitions and on the consent expressed by thelearned counsel appearing on either side, this petition istaken up for final disposal. 3. The issue arise in both the present cases are same,accordingly, both the writ petitions are disposed of by way ofcommon order. The petitioner filed the Income Tax Returns forthe Assessment Year 2017-18 and 2018-19, on 16.02.2018 and31.08.2018 respectively, admitting an income of Rs.1,97,38,000/-, Rs.1,98,96,129/- and agricultural income of Rs.2,25,000/-and Rs.2,10,000/- respectively. The Capital Assets for the yearended 31.03.2017 was Rs.10,92,96,398/- , Rs.11,39,48,688/-.Accordingly, the petitioner had paid the Tax and thepetitioner's return was also accepted for the year 2017-18.Subsequently, while entering the the figures in ITR 3application, the Auditor's apprentice added all the liabilitiesin the three accounts and entered the same in the sources ofcapital in ITR3, whereby, a sum of Rs.14,54,03,863/- waserroneously reported as capital asset in the place ofRs.10,92,96,297/- and Rs.11,39,48,688/- respectively, asprepared by the statutory Auditor. The first respondent treatedthe sum of Rs.3,61,07,566/- and Rs.3,76,83,584/- as incomeomitted from disclosure in the return of income for the year2017-18 and 2018-19 and issued a notice under Section 148proposing to assess the said amount of Rs.3,61,07,466/- andRs.3,76,83,584/- additionally, after getting the approval of theJurisdictional Commissioner on 29.03.2021. Immediately, thepetitioner gave reply on 27.09.2021 explaining that there was noescapement of income and it was only an inadvertent mistakewhile entering the figures of the capital account in ITR 3 bythe Auditor's apprentice. However, the first respondent did notaccept the petitioner's explanation and reopened the assessmentfor the year 2017-18 and 2018-19 by issuing a notice underSection 142(1) dated 12.11.2021 and thereafter, the petitionerpreferred an application under Section 144A of the Act beforethe second respondent on 24.11.2021. However, till date noaction has been taken by the respondent. Hence, the present WritPetition has been filed by the petitioner for the above relief. 4. Though very many grounds have been raised, learnedcounsel for the petitioner submitted that this Court may issueddirection to the respondent to conclude 144A application filed https://hcservices.ecourts.gov.in/hcservices/ by the petitioner within a reasonable time fixed by this Courtand no coercive action be taken till then. 5. The learned Senior Standing Counsel for the respondentsfairly submitted that respondents will pass appropriate orderson the application filed by the petitioner under Section 144A,within a reasonable time that may be fixed by this Court. 6. In view of the aforesaid submissions, this Court withoutexpressing any opinion on the merits of the case, directs therespondents to pass appropriate orders on the petitioner's 144Aapplication within a period of two weeks from the date ofreceipt of a copy of this Order. 7. Accordingly, these writ petitions are disposed of withthe aforesaid direction. No costs. Consequently, connectedmiscellaneous petitions are closed. Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar 5. The learned Senior Standing Counsel for the respondentsfairly submitted that respondents will pass appropriate orderson the application filed by the petitioner under Section 144A,within a reasonable time that may be fixed by this Court. 6. In view of the aforesaid submissions, this Court withoutexpressing any opinion on the merits of the case, directs therespondents to pass appropriate orders on the petitioner's 144Aapplication within a period of two weeks from the date ofreceipt of a copy of this Order. 7. Accordingly, these writ petitions are disposed of withthe aforesaid direction. No costs. Consequently, connectedmiscellaneous petitions are closed. Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar tri/nhsTo1.The Deputy Commissioner of Income Tax, Non Corporate Circle - 19(1), 121, Nungambakkam High Road, Chennai - 600 034.2.The Additional Commissioner of Income Tax, Range - 19, 121, Nungambakkam High Road, Chennai - 600 034. 3.The National Faceless Assessment Centre, New Delhi. +1cc to M/s.Waraon & Sairams, Advocate Sr.20165+1cc to M/s.Hema Muralikrishnan, Advocate Sr.20214+1cc to M/s.Waraon & Sairams, Advocate Sr.20166 (29/03/2022) W.P.Nos.6961 & 6964 of 2022W.M.P.Nos.6998 & 6999 of 2022 ppa[co]srg 28/03/2022 https://hcservices.ecourts.gov.in/hcservices/