Wp/2323/2019 Of M/S.medical Research Foundation v. The Deputy Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 09.12.2021 CORAM THE HON'BLE MR.JUSTICE C.SARAVANANW.P.Nos.2323 & 2448 of 2019andW.M.P.Nos.2601, 2716 & 2713 of 2019 (Through Video Conferencing) M/s.Medical Research Foundation,41, Sankara Nethralaya,College Road, Nungambakkam,Chennai – 600 006Represented by its Vice PresidentDr.Girish Shiva Rao.... Petitioner in W.P.No.2323/19 M/s.Vision Research Foundation,41/48, College Road,Chennai 600 006Represented by its Honorary SecretaryDr.S.Bhaskaran.... Petitioner in W.P.No.2448/19 The Deputy Commissioner of Income Tax(Exemptions), Chennai Circle,Chennai – 600 034.... Respondent in both W.Ps. Writ Petitions filed under Article 226 of theConstitution of India, for issuance of a Writ of Certiorari,to call for the records of the petitioners on the files of therespondent in PAN: and in PAN:AAATV2725Mrespectively and quash the impugned orders passed u/s.143(3)in ITBA/AST/S/143(3)/2018-19/1014531982(1) dated 24.12.2018for the Assessment Year 2016-17 and in ITBA/AST/S/143(3)/2018-19/1014313179(1) dated 15.12.2018 respectively for theAssessment Year 2016-2017. For Petitioner : Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan in both W.Ps. For Respondent : Mrs.Hema Muralikrishnan Senior Standing Counsel in both W.Ps. https://hcservices.ecourts.gov.in/hcservices/ C O M M O N O R D E R Heard the learned counsel for the petitioners and thelearned Senior Standing Counsel for the respondent. 2. The petitioners have challenged the impugnedAssessment Orders dated 24.12.2018 and 15.12.2018 respectivelyfor the Assessment Year 2016-2017. The impugned orders havebeen challenged primarily on the ground that the impugnedorders have been passed following the earlier AssessmentOrders passed by the Assessing Authority for the AssessmentYear 2015-2016 dated 28.12.2017. 3. Both the learned counsel for the petitioner and thelearned Senior Standing Counsel for the petitioner submit thatthe aforesaid Assessment Orders dated 28.12.2017 for theAssessment Year 2015-2016 have been challenged before thisCourt in W.P.Nos.1293 & 1312 of 2018 respectively which cameto be disposed by remanding the case back to the respondent topass fresh orders by treating the said Assessment Orders asShow Cause Notices by an order dated 18.12.2019. The operativeportion of the said order reads as under:- 11. Though the provisions of the IncomeTax Act do not provide for the issuance of ashow cause notice in all cases, in matterssuch as the present, where the AssessingAuthority has formulated a specific issuebased upon his understanding of a transaction,it is incumbent upon him to reveal his mind tothe assessee, in order that the assessee isput to notice of the proposed basis ofassessment and can reply/respond to the same.This not having been done, the impugned ordersare set aside. 12. The impugned orders of assessment inboth Writ Petitions shall be treated as showcause notices and the petitioners will appearbefore the Assessing Officer on Tuesday, the07 th January, 2020 at 10.30 a.m. withoutexpecting any further notice in this regardalong with a written reply as well asmaterials in support of their stand, if any. 13. I consciously refrain from advertingto the merits of the impugned assessments inthe light of my conclusion that theassessments have been completed in violationof principles of natural justice and allcontentions are left open to be appreciatedand adjudicated upon de novo and by way ofspeaking orders. Let this exercise be carriedout and completed within a period of six weekshttps://hcservices.ecourts.gov.in/hcservices/from 07.01.2020. 13. I consciously refrain from advertingto the merits of the impugned assessments inthe light of my conclusion that theassessments have been completed in violationof principles of natural justice and allcontentions are left open to be appreciatedand adjudicated upon de novo and by way ofspeaking orders. Let this exercise be carriedout and completed within a period of six weekshttps://hcservices.ecourts.gov.in/hcservices/from 07.01.2020. 4. Since the Assessment Order dated 28.12.2017 for theAssessment Year 2015-2016 was set aside by this Court videorder dated 18.12.2019, content of which has been extractedabove, based on which, the respective impugned AssessmentOrders dated 24.12.2018 and 15.12.2018 have been passed forthe Assessment Year 2016-2017, I am inclined to quash theimpugned Assessment Orders dated 24.12.2018 and 15.12.2018 forthe Assessment Year 2016-2017 and remit the case back to therespondent to pass speaking orders. 5. The impugned Assessment Orders which stand quashed inthis Order shall be treated as Show Cause Notices. Both thepetitioners are directed to file reply within a period ofthirty (30) days from the date of receipt of a copy of thisorder. 6. The respondent is directed to pass appropriate ordersin accordance with law along with the order to be passed forthe Assessment Year 2015-2016. Needless to state, beforepassing such orders, both the petitioners shall be heard ifrequested. 7. These Writ Petitions stand disposed by way of remand.No costs. Consequently, connected Miscellaneous Petitions areclosed. Sd/-Assistant Registrar(CS-VI) //True copy// jen Sub Assistant Registrar To The Deputy Commissioner of Income Tax(Exemptions), Chennai Circle,Chennai – 600 034. +1cc to M/s.Subbaraya Aiyar Padmanabhan, Advocate SR.No.65872 +2ccs to Mrs.Hema Muralikrishnan, Advocate SR.No.65586, 65587 GJ(CO)GMY(19/01/2022)https://hcservices.ecourts.gov.in/hcservices/