Wp/1899/2022 Of Kantar Gdc Pvt Ltd v. Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANA(Special Original Jurisdiction) TUESDAY, THE THIRTEENTH DAY OF DECEMBERTWO THOUSAND AND TWENry TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN ANDTHE HONOURABLE SRI JUSTICE C.V. BHASKAR REODY WRIT PETITION NO:1899 oF 2022 Between: KANIAR GDC PVT LTD, Kantar GDC rndia private Limited, Havino its officeat orion Btock, The vascendas rr pair,, pti,i no.ii'ii;ffi;;;ii;Yt.'ffi;;iMadhapur,,Hvderabad - 5oo0o8, reransi,ii-ir;[i"i"riljj'ov it! liitn?,?L".,lisignatory Mr. Sairam Reddy ...PETITIONER AND 1.f ncome Tax fficer, National Faceless 2nd Froor, E-Ramp, Jawahar L;i N;hru Assessment Centre, Sdjiu;,'irj;i:iioRoom no. 401 .2nd Froor, E-Ramp, Jawahar L;i N;hru Assessment Centre, Sdjiu;,'irj;i:iioRoom no. 401 .2The Deputy Commissioner of lncome{ax, Circle 2(1), Room No. 514, sthFtoor, Signature Towers, opposite sotJntt;ic;rdUi;,'ia";Irpi,i, ivb"ilo"o_Ftoor, Signature Towers, opposite sotJntt;ic;rdUi;,'ia";Irpi,i, ivb"ilo"o_ 3. Pr. Commissioner of lncome Tax -2, 6th Floor, Signature Towers,OppositeBotanical Gardens, Kondapur, Hvatri6ab-6i.' [-',"']Botanical Gardens, Kondapur, Hvatri6ab-6i.' [-',"']4Koramangala, Bengaluru The Dispute Resolution panel- -560034. [.t,.4th ]Floor, A ['l ]Wing, Kendriya [""'v' ''"']Sadan, 5Union of lndia, Delhi -110001.Throuoh Secretary, Ministry of Finance, North Block, NewDelhi -110001.Throuoh Secretary, Ministry of Finance, North Block, New ...RESPONDENTS Petition under Articre 226 0f the constitution of rndia praying that in thecircumstances stated in the affidavit treo itreiewittr, te iiln'co"u;;;;'t"direction pleased to under issue WR|T Articre 226t221 of OF .CERI19R4R| the constituii6n-or o, iny oiii"r. rnoil, appropriate th;;y ji."tt-i"g writ, order tn"tor(')^I!" [lmpugned ]Finar Assessment order dared 24.5.2021 passed under section143(3) read with section 144 c .and raae or ihe nci,'rry o" set aside as void abinitio as it.has been passed in vioration oi inu-"ir"rt".. issued by the OBDToperation extending the period of the finar of assessment rimitation for ordei firing objections daied 24t5t202\ and (b) '"no crrnf "try .or"]qu"niirron ft,"proceedings and demand raised against the petitLner during the p.noln.v'.rthe present writ petition c; quaJn the stay orderltetter dated 21 .12.2021 proposing adjustment of refund for earrier years against the frivorous demandcreate-d for the current year as a resurt of an invirid order (d) grant stay-onorder/letter dated 21r12r20'1 order/letter dated 21r12r20'1 proposing adjustment of refund roiearilei ylarsagainst the frivolous demand creared for the current year as a resurt of an invaridagainst the frivolous demand creared for the current year as a resurt of an invaridorder and (e) direct the DRp to adjudicate upon ihe objections titeo oy inepetitioner on merits against the draft order dt.2ol4l2o21 .bj tor such othei andfurther reliefs as this Honorable Court may deem fit.further reliefs as this Honorable Court may deem fit. lA NO: 1 OF 2022 proposing adjustment of refund for earrier years against the frivorous demandcreate-d for the current year as a resurt of an invirid order (d) grant stay-onorder/letter dated 21r12r20'1 order/letter dated 21r12r20'1 proposing adjustment of refund roiearilei ylarsagainst the frivolous demand creared for the current year as a resurt of an invaridagainst the frivolous demand creared for the current year as a resurt of an invaridorder and (e) direct the DRp to adjudicate upon ihe objections titeo oy inepetitioner on merits against the draft order dt.2ol4l2o21 .bj tor such othei andfurther reliefs as this Honorable Court may deem fit.further reliefs as this Honorable Court may deem fit. lA NO: 1 OF 2022 Petition under section 1sl cpc praying that in the circumstances statedin the affidavit filed in support of the petition, irre uign court may be pleased toin the affidavit filed in support of the petition, irre uign court may be pleased todispense with the filing of the certifled copy of the impugned final assessmentorder dated 24.05.2021 bearing DtN and order No. ireAJnsrlslt+3(3)t2021_order dated 24.05.2021 bearing DtN and order No. ireAJnsrlslt+3(3)t2021_2211033067036(1) passed by the Respondent No.1 under section t+i15y reaowith sections 144c(3) and 144F and the stay order dated 21 .12.2021 bearingwith sections 144c(3) and 144F and the stay order dated 21 .12.2021 bearingDIN and Letter No. trBAlRCvlFrlTr2o2l-22/1o3r991638(r) issued by theRespondent 2 relating to the Assessment year 2017 -1g, as the same wereissued to the Petitioner by the Respondent no. 1 and Respondent no. 2respectively by way of uploading on the e-filing account of the petitioner only andno hard copy/certified copy was served on the petitioner.respectively by way of uploading on the e-filing account of the petitioner only andno hard copy/certified copy was served on the petitioner. lA NO: 2 OF 2022 Petition under section 151 cPC praying that in the circumstances statedin the affidavit filed in support of the petition, the High court may be pleased*togrant stay on the operation of lmpugned Final Assessment Order dated2410512021 passed under section 143(3) read with section 144c and 1448 of theAct and consequential proceedings and demand raised against the petitioner inrelation thereto during the pendency of the present writ petition.grant stay on the operation of lmpugned Final Assessment Order dated2410512021 passed under section 143(3) read with section 144c and 1448 of theAct and consequential proceedings and demand raised against the petitioner inrelation thereto during the pendency of the present writ petition. Counsel for the Petitioner: SRI DEEPAK CHOPRA REPRESENTTNG FORSRI G. NARENDRA CHETTY Counsel for the Respondent No.1 to 4: M/s. K. MAMATA CHOUDARY, SENIORSC FOR INCOME TAX Counsel forthe Respondent No.S: SRt B. MUKHERJEE REPRESENTING FORSRI GADI PRAVEEN KUMAR, DY.SOLICITOR GENERAL OF INDIA The Court made the following: ORDER II THE I{ON'BLE THE CHIEF IUSTICE U AL BHUYANANDTHE HON'BLE SRI IUSTICE C.V.BHASKAR REDDYW.P.No.1899 of 2022 ORD (1,,r rhe Ho 'bL rh t.hi4lurtu L.:n,,t ltbqr,t) Heard Mr. Dcepak Chopra, Iearned counsel for [the]petitioncr and Ms. I(.Nlanrata Choudary, learned SeniorStanding Counsel, Income Tax Department for respondcntsNo.1 to 4. We havc also he ard r\{r. ll.Mukhcrjce, learnedcounsel representing lcarned l)epury Solicitor General of Indiafor respondent No.5 2. By filing this petiuon under Article 226 of theConstitution of India, petitioner has prayed for the followingreliefs: A writ of certiorari or any other appropriate writ,order or direction under Articlc [226 ]/227 of [rhe]Constitution of India thereby directiog that [(a) ]TheImpugned Final Assessmcnt order dated [24.5.2021]passed under Section 143(3) read with Sections144C and 14411 of the Act may be set aside as [voay']ab initio as it has been passed in violation of thecircular issued by the CIIDT extending the penod s I I 3. order 2. By filing this petiuon under Article 226 of theConstitution of India, petitioner has prayed for the followingreliefs: A writ of certiorari or any other appropriate writ,order or direction under Articlc [226 ]/227 of [rhe]Constitution of India thereby directiog that [(a) ]TheImpugned Final Assessmcnt order dated [24.5.2021]passed under Section 143(3) read with Sections144C and 14411 of the Act may be set aside as [voay']ab initio as it has been passed in violation of thecircular issued by the CIIDT extending the penod s I I 3. order o[ limitatjon tirr filing objccu,rns,0) [g."r',t ][sta1, ][on ][the ][()pcrati()n ][ol' tlre ][linel]asscssnrent order clarcd 24.5.2021 and conscqLrcnrillprocccdtngs and drqrend raiscd againsr rhepetirr()ner during the pendencv of the presenr u,ritpetitron; G) qulsh the sray orclcr/letterclate<l 2'1.12.2021 proposlns adjustmenr of refuncltbr carlier vears agarril the frivclkrus rlcnr:rndcreatcd for the current lcirr as a result of an inr,,rlrdordcr; (d) (rant sril\; on ordcr/lc:rcr.dzrc<l 21J,22021 proposing adjusrmcnt oi rcfirnrlfor carlier years against the frivolous rlemrnclcreatcd for thc crlrrcnt lcnr as a rcsult of an invrrlidorder; and (e) dircct the I)RI) to acljr.rdicate upon rheobiecri,,ns filerl by rhc pr.tirroncr on nrerits ailxin\rthe drafc order dt.20.4.2021. On 17 .01.2022, this [(}rurt ]had passed the following (lrievance cxpresse<l by the petitioncr is thatdespite filing objection ro the Drafr AssessmenrOrdcr, proposing to make variations in thc returnfrled bv the petitioner, within the exrendedlimitation as granted by the Central Board of DircctTaxes, the same was not considered and finalassessrncnt ordcr was passed. Further gricvancc rs --- thar rhc Disputc Resolution Pancl also declincd toIook into thc objecuon filcd by rhc pcriri<>ner. Ms. K. tr[amata, learncd Standing Counsel f<rrthe Income Tax Deparrment, ro obtain insrrucdons. List after rwo (02) weeks, r.a, on 02-02.2022when an endeavour may be madc to hear anddispose of the Writ Petition. Till then, illtlti' qrc es on r() tlav shall bemaintained. 4. Rcspondents ha\re not filecl cour.rrcr altrdavit till datc. 5. Grievance of the petitioner rs that rhe impugned finalassessment order dated 24.05.2021 was passed by rcspondent SNo.1 in contravention of the provisions contained inSection 144C(2) of the Incomc Tax Act, 1961 (briefly'the Act'heteinafter) read with Circular No.8/2021 issued by theCentral Board of Direct Taxes (CBDT) 6. Section 144C of the Act deals with reference to disputeresolution panel. As pet sub-section (1) thereof, an assessingofficer at the fust instance shall forward a draft of theProPosed [order ][of ][assessment ][to ][the eligible ][asscssee, ][if ][he] ploposcs to rneke anY variation in the incomc or Ioss rctr.trrreds.hic[-r is pre [judicial ]to thc interest of such asscssee. [Sub]secuon (21 thcreol, on rvhtch much cmphasis lras lrcett plrrceclbt'learned cc,unsel ftrr the pctiuoner, provides that [on ][rcccipt]of such dralt order, the etigiblc assessee shall within thirtv [days]oF reccipt of thc dralt ordcr iry him cither file his [acccptarrce]of thc variari,rn to rhe asscssing officcr or file his objcctit,n tt,such vlriation with the rlispute resolution pancl an<l [thc]assessing officcr. If the clrqible assessee cloes not [raisc ][ettt]obiection, thcn thc assessing officer is manclated undersub-section (3) thereof to complete the assessment on thebasis of the rlraft order. In case of obiection bcing [raisecl ]bythe eligible assessee, sub-scctions (5) to (12) provide thatdispute resolution panel may issue such directions forguidance of [t ]he assessing oft-icer to enable him to complerethe asscssmcnt 7. I-earncrl counsel for the petitioncr submits that theperiod of thirrv days availablc to rhe origina.l assessee to raisc objection to thc draft [assessmcnt or<ler ][was ][further ][extcndetl]bv the CBDT rtll [31.05.2O21; ][rvithout cxpiry ][of ][the ][cxtendcd]limitation period, respondent [No.1 ][passed ][the impugned ][final]assessment order 7. I-earncrl counsel for the petitioncr submits that theperiod of thirrv days availablc to rhe origina.l assessee to raisc objection to thc draft [assessmcnt or<ler ][was ][further ][extcndetl]bv the CBDT rtll [31.05.2O21; ][rvithout cxpiry ][of ][the ][cxtendcd]limitation period, respondent [No.1 ][passed ][the impugned ][final]assessment order 8. In an .identical case bcins W.P.No.27596 [of ][2021 ][(Infor]India Private Limited v. Addl./Joint/Dy./Asst.Commissioner of Income Tax/Income Tax Officcr,National Faceless Assessment Centrc, Delhi) decidedoa 17.06.2022, this Court took thc vicrv that due to non-compliance of the procedure laid down under Sections 144Band. 1.44C of the Act, the impugned final assessment orderstood vitiated and it accordingly set aside the same remand.ingthe matter back to the assessing officer for a fresh decision onthe basis of the directions that may be issued by the disputeresolution panel. 9. Foilowing the above, we set aside the impugned finalassessment order dated 24.05.2021. passed by respondent No.1 u' I,t| rnd the c()nsc(luenrirl n()rice ()l demand tl,a,tccl 24.05.2021.\Iattcr Ls rer.nandecl lrack ro respondent No.4 2.2., clisputercsoludon pancl fcrr issuing srrch tlirections as may be deemcdnecessan, u.hercafter, the asscssing officer may pass the finalassessment ordcr in accordancc with the provisions laid downunder Secrion l44C of the ,\cr. 10. Be it statcd thar thc rLspurc resolution panel may, ls s Llenecessar)'rlirections to the assessing officer in accordance u,ithlarv witlln :r pr'rir>d o[ six monrhs fiom the date of receipt of acopy of this orclcr 11. This disposcs of thc u,rit pctition. No costs As a sequel, miscellaneous petiuons, pending if any, stand closed SDI T. SRINIVAS'=:-'^ffi5::l::: SECTION OFFICERI //TRUE COPY// To,1lncome Tax officer, National Faceless Assessment Centre, Room no. 401 , 2nd Floor,E-Ramp, Jawahar Lal Nehru Stadium . Delhi - 1 100032The Deputy Commissioner of lncome-tax, Circle 2(1), Room No. 514, 5th FtoorSignature Towers, Opposite Botanical Gardens, Kondapur, Hyderabad-84.JPr- Commissioner of ncome Tax -2, 6th Floor,Signature Towbrs,Opposite BotanicalGardens, Konda pur, Hyderabad-844.BeThe Disputengaluru -560034Resolution Panel- 1 , 4th Ftoor, A Wing, Kendriya Sadan, Koramangala,5.Union of lndia, [Through ]1 10001Secretary, Ministry of Finance, North Block, New Delhi _6.One CC to SRIG. o8.7.Two One One CD CC CC Copto to SRI Mles/s. K. MAMATA GADI PRAVEENARENDRA CHETTY, Advocate [OPUCCN KUMAR, HOUDARY, DSY. ENIOR SOLICITOR GENERAL SC FOR INCOME TAXOF INDIABNGJ HIGH COURT DATED:1311212022 ORDER WP.No.1899 of 2022 DISPOSING OF THE WRIT PETITIONWITHOUT COSTStN'v).y 1\"ea: oI2 '-l:1 [?$n], .i[ ,),., .'- .'. ['),:z']