Shri.mahalingam Karthikeyan v. The Income Tax Officer, Ward-1(3)

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN Shri.Mahalingam Karthikeyan,Proprietor M/s. Sun Yarn,Son of Mr.Mahalingam, No.175/50, Kongu Main Road,Near Aachi Electronics, Thirupur - 641 607. ... Petitioner Vs 1. The Income Tax Officer, Ward-1(3), 121, Adams Building, First Floor, 60 Feet Road, Tirupur - 641 602. 2. The Joint Commissioner of Income Tax, Range-1, 121, Adams Building, 1st Floor, 60 Feet Road, Tirupur - 641 602. ... Respondents Prayer:- Petition filed under Article 226 of the Constitution ofIndia to issue a Writ of Certiorari calling for the records inPAN No.BDTPK1630B dated 31.12.2018 on the file of the firstrespondent relating to the Assessment Year 2016-2017, and quashthe same. The petitioner has challenged the impugned Assessment Orderdated 31.12.2018 passed under Section 143(3) of the Income TaxAct, 1961. It is the specific case of the petitioner that the https://hcservices.ecourts.gov.in/hcservices/ respondents had called upon the petitioner to furnish certaindocuments which were furnished by the petitioner over a periodof time. However, by an communication dated 06.12.2018, thepetitioner had requested three months time for furnishing someof the other documents. 2.It is the further case of the petitioner that ignoringthe same, the first respondent kept writing letters to thepetitioner by asking the petitioner to comply with therequirements as the Assessment would get time barred by31.12.2019. 3.The learned counsel for the petitioner submits that someof the communication which were sent earlier were also receivedby the petitioner long after the time fixed for compliances bythe petitioner. It is further submitted that the petitioner hadalso approached this Court in W.P.No.34337 of 2018 and that theorder came to be passed on 03.01.2019. It is submitted that ifone fresh opportunity is granted to the petitioner by remittingthe case back to the respondent, the petitioner will be able toestablish the case. It is further submitted that thepetitioner will cooperate and furnish all the documents. 4.Opposing to the prayer, the learned counsel for therespondent submits that the Writ Petition in W.P.No.34337 of2018 was disposed based on the representations made by theCounsel for the petitioner in open Court by merely referring tothe communication dated 06.12.2018 of the petitioner. Thelearned counsel for the respondent further submits that after06.12.2018, several notices were issued to the petitioner whichwere not complied by the petitioner, thus the impugned ordercame to be passed. It is submitted that limitation would haveexpired and therefore the assessment order came to be passed.He submits that the petitioner has an alternate remedy underSection 243(3) of the Income Tax Act, 1961. 5.Heard the learned counsel for the petitioner and thelearned counsel for the respondent and perused the orders passedon 03.01.2019 in W.P.No.34337 of 2018. The operative portion ofthe aforesaid order which reads as under:- “Mr.ANR.Jaya Prathap, learned Standing Counsel takes notice for the respondent. Byconsent of the parties, this main writ petition istaken up for final disposal at the admission stageitself. 2.The petitioner seeks for a direction to therespondent to grant six months time for furnishingthe documents relating to assessment year 2016-17.3.Heard both sides. 5.Heard the learned counsel for the petitioner and thelearned counsel for the respondent and perused the orders passedon 03.01.2019 in W.P.No.34337 of 2018. The operative portion ofthe aforesaid order which reads as under:- “Mr.ANR.Jaya Prathap, learned Standing Counsel takes notice for the respondent. Byconsent of the parties, this main writ petition istaken up for final disposal at the admission stageitself. 2.The petitioner seeks for a direction to therespondent to grant six months time for furnishingthe documents relating to assessment year 2016-17.3.Heard both sides. 4.It is seen that the respondent/AssessingOfficer issued a notice dated 03.12.2018, callingupon the petitioner to furnish certain details anddocuments for the purpose of completing theassessment in respect of assessment year 2016-17.The petitioner by way of their letter dated06.12.2018, sought three months time forfurnishing those documents along with their replyon the reason that their bank has shifted theirbusiness place and that the Commercial TaxDepartment has not furnished certain documents tothe petitioner so far. It is also stated in thesaid letter that they are collecting somedocuments from the Establishment, in which, thepetitioner has made the transactions andtherefore, the petitioner sought for three monthstime. 5.The learned standing counsel for therespondent submitted that even according to thepetitioner, they requested only three months timethrough their letter dated 06.12.2018 andtherefore, there is no justification in seekingsix months time by filing the present writpetition. 6.Considering the above stated facts andcircumstances and considering the reasons statedin the letter dated 06.12.2018, the petitioner isdirected to furnish the reply along with necessarydocuments in respect of the assessment year 2016-17 before the respondent/Assessing Officer on orbefore 15.02.2019. If no reply along withnecessary documents are filed within the timestipulated herein, it is open to the AssessingOfficer to proceed with the assessment inaccordance with law. It is made clear that nofurther time will be granted to the petitioner inany event. 7.With the above direction and observation,this writ petition is disposed of. No costs.Consequently, connected miscellaneous petition isclosed.” 6.When the aforesaid order was passed on 03.01.2019,neither the petitioner nor the learned counsel for therespondent were aware of the fact that the impugned order hadalready been earlier passed on 31.12.2018. The facts on recordindicates that the Court was inclined to extend the period ofcompleting the assessment even as on 03.01.2019, even though,the Statutory period completing the assessment would haveexpired on 31.12.2018. 7.Considering the fact that the petitioner did not getadequate opportunity to furnish the documents and participate inthe adjudication mechanism prescribed under the Act, theimpugned order is quashed and the case is remitted back to the1[st] respondent to pass a speaking order in accordance with lawand on merits within a period of three months from the date ofreceipt of a copy of this order. 8.The petitioner is directed to furnish all the documentsand file any reply or written submissions if any before the 1[st]respondent within a period of thirty days from the date ofreceipt of a copy of this order. In case, the petitioner failsto cooperate with the first respondent, the respondent are atliberty to pass appropriate orders on merits based on materialsavailable on records. 9.This writ petition stands disposed of with the aboveobservations. No costs. Consequently, connected miscellaneouspetitions are closed. Sd/- Assistant Registrar(CO) //True Copy// jas Sub Assistant Registrar To 1. The Income Tax Officer, Ward-1(3), 121, Adams Building, First Floor, 60 Feet Road, Tirupur - 641 602. 8.The petitioner is directed to furnish all the documentsand file any reply or written submissions if any before the 1[st]respondent within a period of thirty days from the date ofreceipt of a copy of this order. In case, the petitioner failsto cooperate with the first respondent, the respondent are atliberty to pass appropriate orders on merits based on materialsavailable on records. 9.This writ petition stands disposed of with the aboveobservations. No costs. Consequently, connected miscellaneouspetitions are closed. Sd/- Assistant Registrar(CO) //True Copy// jas Sub Assistant Registrar To 1. The Income Tax Officer, Ward-1(3), 121, Adams Building, First Floor, 60 Feet Road, Tirupur - 641 602. 2. The Joint Commissioner of Income Tax, Range-1, 121, Adams Building, 1st Floor, 60 Feet Road, Tirupur - 641 602. +1cc to Mr.G.Baskar, Advocate, S.R.No.65939+1cc to Mr.A.P.Srinivas, Advocate, S.R.No.66544 W.P.No.2335 of 2019andW.M.P.Nos.2577 & 2578 of 2019 SS(CO)SU(19/01/2022)