Wp/11970/2021 Of M/S.omkara Assets Reconstruction Private Limited v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT MADRAS C O R A M THE HON'BLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY W.P.NO.11970 OF 2021 ANDWMP.NOS.12739 AND 12740 OF 2020 M/s.Omkara Assets Reconstruction Private Limited Represented by its Director, Mrs. Sudha Srikanth, No. 57/29, Appachi Nagar Main Road,Kongu Nagar Extension,Tiruppur 641607... Petitioner.Vs. 1. The Assistant Commissioner of Income tax, Income tax Officer, National e- Assessment Centre, Delhi. 2. Income Tax Officer, Ward 1(2) No. 121, Adams Building, Sixty Feet Road, Tiruppur 641602. .. Respondents Writ Petition filed under Article 226 of the Constitution ofIndia praying to issue a Writ of Certiorari calling for therecords of the first respondent relating to the impugnedassessment order vide ITBA/ AST/S/143(3) / 2021-22/1032681333(1)dated 26.4.2021 passed u/s 143(3) read with Section 144B of theIncome Tax Act and the consequent Notice of demand videITBA/AST/S/156/2021-22/1032681369(1) dated 26.4.2021 undersection 156 of the Income Tax Act 1961, quash the same asillegal arbitrary and devoid of merit. For Petitioner : Mr.P.H.Arvindh Pandian, Senior Counsel for Mr.Harishankar Mani For Respondents: Mr.A.N.R.JayaprathapStanding Counsel (IT) O R D E R (Through Video Conferencing) The Writ Petitioner challenges an Assessment Orderdt.26.04.2021 passed under Section 143 (3) r/w Section 144 B ofthe Income Tax Act, 1961 and the consequential notice of demanddt.26.04.2021 under Section 156 of the said Act. 2.Learned Senior Counsel for the petitioner Mr.P.H.ArvindhPandian, contends that the impugned order was issued withoutproviding a reasonable opportunity to the petitioner under thefaceless Assessment Scheme. He further submits that theaforesaid faceless Assessment Scheme envisages the issuance of adraft Assessment Order, which should be finalized only uponconsidering the objections of the petitioner. In the case athand, the assessment was concluded without providing areasonable opportunity to the petitioner. In specific, hepoints out that the Assessment Order included unsecured loansand share capital as income in the hands of the assessee whilearriving at the total income of Rs.102,77,12,910/-. He alsopoints out that an appeal was filed before the Commissioner ofIncome Tax (Appeals) on 10[th] May 2021 and that an application forstay of the impugned demand was also filed. However, suchapplication has not been taken up and decided till date. 3.Although the Assessment Order and demand notice areimpugned herein, learned Senior Counsel submits that in light ofthe pending statutory appeal, the petitioner would be satisfiedif such pending appeal is disposed of expeditiously and interimprotection is granted in the meantime. 4.Mr. A.N.R.Jayaprathap, learned Standing Counsel (IT)accepts notice on behalf of both the respondents. He submitsthat there are constraints with regard to the expeditiousdisposal of the appeal at this juncture, but that the stayapplication could be directed to be disposed of expeditiously. 5.In view of the fact that the Assessment Order isappealable and such appeal has been filed by the petitioner, Iam not inclined to consider the Writ Petition on merits.Nonetheless, in view of the fact that the main issues forconsideration in such appeal are limited largely to theinclusion of unsecured loans and share capital as part of thetotal income of the assessee, I am inclined to direct theexpeditious disposal of the Appeal pending before theCommissioner of Income Tax (Appeals). Such appeal shall bedecided after providing a reasonable opportunity to thepetitioner, including a personal hearing if so requested.Accordingly, Writ Petition No.11970 of 2021 is disposed of bydirecting the Commissioner of Income Tax [Appeals] to dispose of the appeal filed by the petitioner against the Assessment Orderdt.26.04.2021 as expeditiously as possible, preferably within aperiod of two months from date. Until such time, the respondentsare restrained from recovering amounts pursuant to theAssessment Order under challenge in the present Writ Petition.No costs. Consequently, the connected miscellaneous petitionsare closed. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrarkp/dsaTo1. The Assistant Commissioner of Income tax, Income tax Officer, National e- Assessment Centre, Delhi.2. Income Tax Officer, Ward 1(2) No. 121, Adams Building, Sixty Feet Road, Tiruppur 641602.W.P.No.11970 of 2021VBM(CO)CS/10/06/2021