Wp/13784/2021 Of Nava Bharat Energy India Limited v. Deputy Commissioner Of Income Tax

WEDNESDAY. THE TWENTY SECOND DAY OF DECEIVBERTWO THOUSAND AND TWENTY ONE PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYANANDTHE HONOURABLE SMT JUSTICE P.MADHAVI DEVI WRIT PETITION NO: 13784 OF 2021 Between: Bhavan Nava Bharat Energy Road, Somajiguda, Hyderabad, Telanqana lndia Limited, 6-3-1 109/1 , Nava Bharat - Chambers,500082PANRajNo.AACCN7442G Represented by its Authorised Signalory ...PETITIONER AND 1.Deputy Commissioner of lncome Tax, National Faceless Assessment Centrelncome Tax Department Delhi 110 003lncome Tax Department Delhi 110 0032.DeluJy Commissioner of lncome Tax, qlr9le 5(1) otd Circle 16(1), t.T. Towers,A.C Guards. [rlasab Tank, Hyderabad 50OOO4A.C Guards. [rlasab Tank, Hyderabad 50OOO4 3Union of lndia , Rep by its_Secretary, of Revenue, tr,/inistry ofFinance North Block New Delhi - 1 10 001-D-epartment Finance North Block New Delhi - 1 10 001-D-epartment ...RESPONDENTS Petition under Article 226 of rhe constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High court may be pleasedto issue writ order or Direction more particularly in the nature of writ of Mandamusto issue writ order or Direction more particularly in the nature of writ of Mandamusdeclaring the impugned demand notice no. lrBA/AST/S/15 612021-2211032255991(1) dated 7l4t2o2l for assessment year 2018-19 issued undersectron 156 0f lncome Tax Act by the lst Respondent under faceless assessmentscheme 2019 as being arbitrary, ilegar and contrary to assessment order andviolative of Articres 1a and 19(i)(g) of constitution of rndia and consequenfly setaside the demand notice and direct the Respondents to rectify the demand noticeand computation as per assessment order.violative of Articres 1a and 19(i)(g) of constitution of rndia and consequenfly setaside the demand notice and direct the Respondents to rectify the demand noticeand computation as per assessment order. IA NO:1 oF 2021 Petition under section 15'1 cpc praying that in the circumstances stated inthe affidavit fired in support of the petition, the High court may be preased to grantliberty to petitioner to independenfly chalenge the assessment order no.lrBA/AST/S/143(3)12021-22r10322s5965(1) dated 7r412021 for assessment year2018-19 issued U/sec i43(3) of the rncome Tax Act. before the appeilate authorityand direct the respondents to treat the tax demand as NrL for purpose of appear. IA NO: 2 OF 2021 Petition under Section 151 CPC [praying ]that in the circumstances [stated ][in]the affidavit filed in support of the [petition, ]the [High Court may ][be ][pleased to ][stay]the tax demand of Rs.1 3,43,07,880/- [and interest thereon demanded ][by ][the]Respondent under notice no. [1 ][5612021 ][-2211 ][03225599 ][1 ][( ][1 ]) [dated]7t412021 for assessment [year 2018-19, issued under section ]['1 ][56 ][of ][lncome ][Tax]Act. NO: 4 OF 2021 Petition under section [151 ][cPC ][praying ][that ][in ][the ][circumstances stated ][in]the affidavit filed [in ][support of ][the ][petition, ][the ][High ][court ][may be pleased ][to ][permit]petitioner to amend the writ affidavit [by ][inserting paras ][3 ][to ][9 ][above as paras ][20A to]20G in the writ affidavit [and also ][permit petitioner ][to ][amend ][the ][main prayer ][as]stated in [paa ]11and [carry out ][the ][amendments ][in ][the writ affidavit and ][writ ][petition]and [permit ]to make [all consequential amendments'] lA NO: 3 OF 2021 l.TheDeDutVCommissioneroflncomeTax,NationalFacelessAssessmentCentrelncome'Tal Depa(ment [Delhi ][110 003]lncome'Tal Depa(ment [Delhi ][110 003] 2. t;;;;:A.b.Guaros'MasaoTank, The Deputy commissioner[of lncome ]Hvderabad 500004'[Tax, circle^s('1J ][old ][circle ][16(1)' ][l.T.] PETITIONERS/RESPONDENT [NO. ][2&3] AND lA NO: 3 OF 2021 l.TheDeDutVCommissioneroflncomeTax,NationalFacelessAssessmentCentrelncome'Tal Depa(ment [Delhi ][110 003]lncome'Tal Depa(ment [Delhi ][110 003] 2. t;;;;:A.b.Guaros'MasaoTank, The Deputy commissioner[of lncome ]Hvderabad 500004'[Tax, circle^s('1J ][old ][circle ][16(1)' ][l.T.] PETITIONERS/RESPONDENT [NO. ][2&3] AND 1. Nava Bharat [Energy lndia Limited ][6-3-'1'1!9/1 ][, ][Nava Bharat Chambers' ][Rai]' ijh;;; R;;d; soil'ailgrdal Hvoirauaa, Telangana - 500082' Rep bvAuthorised RePresentatlve.' ijh;;; R;;d; soil'ailgrdal Hvoirauaa, Telangana - 500082' Rep bvAuthorised RePresentatlve. RESPONDENT/ 2. Union of [lndia,, Rep. ][by ][its ][Secretary^, ]^D€partment [of Revenue' Ministry ][of]^D€partment [of Revenue' Ministry ][of]Finance North [Block New Delhi - ][1 ][10 ][0U1] RESPONDENT [/RESPONDENT ][NO. ][3] PetitionunderSectionl5'lCPCprayingthatinthecircumstancesstatedinthe affidavit fired [in support ][of ][the ][petition, ][the ][High ][court ][may be ][preased ][to ][vacate]the interim [orders ][dated ][22lOOl2O21 ][in ][l ][A'No ][1 ][of ][2021 ][and ][l ] [No ][2 ][ol ][2021 ][in]W.P.No. 13784 [of ][2021 ][.] Counsel [for the Petitioner: ][SRI C' ][V' ] Counsel for [the Respondent Nos' 1 ][and ][2: ] [PRASAD'] SC FOR Counsel [for the Respondent ][No' ][3: SRI ][NAMAVAI|PU ] [RAO']ASSISTANT The Court made [the ][following: ] THE HON'BLE ANDTHE HON'BLE [SMT. ] [P. ] WRI'I'PE TITION [No.l]-t'784 ol202l ORDER : [(Per ][UB' ][J)] We have heard [Mr. ][C.V.Narasimham, learned counsel ][for]petitioner and Mr.J.V.Prasad, [learned Standing Counsel ][for ][the]Income Tax Department. 2. In this writ [petition, petitioner ][has ][challenged the ][legality ][and]validity of the Demand Notice [dared ][07.04.202i ][issued ][by the ][1"]respondent for the Assessment [Year ][20 ][1 ][8- ][1 ][9 ][under ][Section ] [56 ][of ][the]lncome-Tax Act, 1961 [(briefly ]['the ][Act' ][hereinafter) ][on ][the ][ground]that it is contrary to the Assessment [Order ][for ][the ][said ][Assessment]Year, dated 07.04.2021 [.] 3. From a perusal of the Assessment Order, we find that [income ]ofthe petitioner was assessed at [(-) ]25,86,57,810.00. [In ][other words, ][it]was a loss figure. Nonetheless, in the [Demand ][Notice, ]a [sum ][of]Rs.13,43,07,880.00 was directed to be [paid ]by [the ][petitioner.]4. lt appears that petitioner had flled a rectification [petition ]undel'Section 154 of the Act. In the rectification petition filed on06.08.2021, petitioner contended that interest under Section 234 (C)of the Act fbl an amount of Rs.46,71,624.00 was wrongly charged assuch interest could not have been charged, there being no taxableincome. It was also contended that credit for Tax Deduction at Source (TDS) for an amount of Rs.l 1,46,220.00 only was granted against theclaim of Rs. I 6, I 9,410.00, thereby resulting in shortfall of TDS creditto the extent of Rs.4,73,190.00.claim of Rs. I 6, I 9,410.00, thereby resulting in shortfall of TDS creditto the extent of Rs.4,73,190.00. 5. Respondent No.l-Deputy Commissioner of Income Tax,Circle-5( 1), Hyderabad has filed a Memo enclosing there [with]Rectification Order dated 04.12.2021. The Rectification [Order ][reads]as under : "ln this case, assessment order u/s 143(3) r.w.s. 143(3A)& 143(38) of the lncome tax Act, [196l ][(hereinalier]referred as 'Act') was completed for [assessrnent year]2018-19 on 0710412021 by making [addition of]Rs.61,18,734l- towards ['Disallowance ][of]decommissioning liability' [and there ][by ][assessing ][the]total loss at Rs.25,86,57,8 l4l- [as ][against ][the ][returned]loss of Fts.26,47,76,5481-. [However, ][while ][computing]the total income, the taxable [income was eroneously]taken at Rs.27,67,31,4601- and [demand ][of]Rs. 1 3,43,07,878/- [was raised.] 5. Respondent No.l-Deputy Commissioner of Income Tax,Circle-5( 1), Hyderabad has filed a Memo enclosing there [with]Rectification Order dated 04.12.2021. The Rectification [Order ][reads]as under : "ln this case, assessment order u/s 143(3) r.w.s. 143(3A)& 143(38) of the lncome tax Act, [196l ][(hereinalier]referred as 'Act') was completed for [assessrnent year]2018-19 on 0710412021 by making [addition of]Rs.61,18,734l- towards ['Disallowance ][of]decommissioning liability' [and there ][by ][assessing ][the]total loss at Rs.25,86,57,8 l4l- [as ][against ][the ][returned]loss of Fts.26,47,76,5481-. [However, ][while ][computing]the total income, the taxable [income was eroneously]taken at Rs.27,67,31,4601- and [demand ][of]Rs. 1 3,43,07,878/- [was raised.] Against the mistake [committed ][in ][the]computation sheet, [the ][assessee ][filed ][application]for [passing ][rectification ][order ][u/s ][154 ][of ][the]requesting Act. Accordingly, [the ][Rectification ][order ][u/s ][154 ][of ][the]Act was [passed ]on [27lO7l2o2l. ][The ][assessee ][again ][filed]dated [06/08/2021 stating ][that ][in ][the ][said]an application rectification order, [the ][interest ][uls ][234C has ][been]wrongly charged at [Rs.46,71,6241- ][and ][requested ][to]rectify the same. [The ][claim ][of ][the ][assessee ][is ][veritled]and found to be correct. [Accordingly, the ][rectiflcation]\ order [passed ]u/s [154 ][of ][the ][Act ][dated ][06/08/202 ] [is]modilled through [this order."] 6. Learned counsel fbr [petitioner points out ][that even ][at ][this ][stage,]the claim for TDS credit of [Rs.4,73,190.00 ][has ][been ][overlooked by]the Assessing Off-rcer while carrying out [the ][rectification.] '7. In the circunrstances, we direct respondent No.2 to pass a freshrectiflcation order for the Assessment Year 2018- l9 considering [the]above grievance ol'the petitioner. The same shall be [done ][within ][a]period of 30 days fionr the date of receipt of a copy of this order. 8. This disposes of the writ petition. No order as to costs. 9. Pending miscellaneous applications, ifany, shall stand closed. SD/.K.AMMAJIASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. Deputy Commissioner of lncome [Tax, ][National Faceless Assessment ][Centre]lncome Tax Department Delhi [[1 ][1 ]][[1 ]]0 003lncome Tax Department Delhi [[1 ][1 ]][[1 ]]0 003 [[1 ][1 ]][[1 ]]2. Deputy CommiSsioner of lncome Tax, Circle [5(1)old ][Circle ][16('1 ])' [l.T. ][Towers,]A.C.Guards, I\rlasab Tank, Hyderabad [500004]A.C.Guards, I\rlasab Tank, Hyderabad [500004]3. The Secretary, Department'of [Revenue, Union ][of ][lndia,, ][lt4inistry ][of ][Finance]Norlh Block New Delhi [- ]110 001Norlh Block New Delhi [- ]110 0014. One CC to SRI C. V. NARASIwHAM [Advocate ]IOPUC]6. 5. One One CC CC to to SRI J. SRI NAI\4AVARAPU RAJESHWAR V. PRASAD [(SC ]FOR [RAO, ASSISTANT ][TAX) Advocate ]IOPUC] - --GENERAL 6. 5. One One CC CC to to SRI J. SRI NAI\4AVARAPU RAJESHWAR V. PRASAD [(SC ]FOR [RAO, ASSISTANT ][TAX) Advocate ]IOPUC] - --GENERAL 7. Two CD Copies.B. One spare copy.B. One spare copy. NPJBS$x HIGH COURT DATED:2211212021 ORDERWP.No.13784 of 2021 DISPOSING WITHOUT [COSTS.] nt [s ][rAI€.]'(.a,)t.)2I [llilrl2m2]