Wp/27596/2021 Of Infor (India) Private Limited v. Additional / Joint / Deputy / Assistant Commissioner Of Income Tax / Income-Tax Officer

HIGH COURT AT HYOERABAD(SPecial Original [Jurisdiction)] FRIDAY, THE TWO THOUSAND PRESENT THE HONOURABLE AND THE HONOURABLE WRIT PETITIO [;27][596][ oF ][2021] Between: lnfor [(lndia) Private ][Limlted, ][Tower ][10' ][The.Sky View' ][7th ][Floor' ][Sy ][No'83/1 ][']Madhapur, [Raidurg ][virrag6l'sliiriigamp'riv ][rt4gngqL ][Ringa Reddv' ][Hvderabad']i;;il;;; s'oooarh"pr"iJntJov [i6oii:ecior' ][Mr' ][Mohan Rao Banala'] ...PETITIONER AND 1. Additional [/ ][Joint ][/ ][Deputy ][/ ][Assistant ][Commissioner ][of ][lncome Tax ][/ ][lncome-]centre' Delhi/'centre' Delhi/'' i; o'ili";;, r.riiionur [-ia.6t".Jnt"essment ] 2. Deputy Commissioner [of ][lncome ][Tax' Circle 2(1)' ][Signature ][Towers' ][Opposite]Botanical Gardens, [ib"O'p'i, ][Hyderabad' Telbngana ][500084']Botanical Gardens, [ib"O'p'i, ][Hyderabad' Telbngana ][500084'] 3. - Principal a;ia-nlc;r [Commissioner ]Gardens, xonoipur., [of lncome-tax.- ]Hyderabad' Telangana [2' ][Signature ][Towers' ]500084'[Opposite] ...RESPONDENTS PetitionUnderArticle226oftheConstitutionoflndiaprayingthatinthecircumstancesStatedintne_attioavitfiledtherewith,theHighCourtmaybepleased to issue a [writ oi'JrOei ][Lipeciaf ][fV ][in. ][the ][nature ][of writ ][of ][certiorari ][(i)]lu"Jsning'-the [oroer oatea ][o]llolzozt ][bearing ][no. ][ITBA/ASTlsl143(3\12o21-]2211036220359(t) [(nnnexur"-i+) ][patseO ][Oy-the- ][tst ][Respondent ][unde.r^Section]143(3) read [with ][Sections ][llqC(Zl ][and ][14iB ][of ][the ][lncome-tax ][Act' ][1961 ][(the]Act) [(ii)quashing ][the ][Jemand' ]['notice ][bearing ][no' ] '1 st22t1036220413(1) [oateJ ][oi.lozozt ][(Annexure-P5) ][issued ][by ][tl" ]unier [Section ][156 ][of the Act (iii) ][quashing ][the, ][notice ][bearing ][no']n""p"ra""t tTBA/pNL/S/2 [7 ][oAtzo2l ][-;21 ][liiaizo'rct() ][biteo ][oz.l ][o'2021 ][(Annexure- ][P6)]issued by the [1st ][nu"ponO"ni ][under ][Seciion ][274 ][read ][with ][section 270A ][of ][the]Act. l.A.NO:1 OF 2021 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 ]to(i) stay the operation of the order dated 07.10.2021 bearing No. ITBA/AST/S/143(3)12021- 2211036220359(1), (AnnexureP4) issued by the 1st Respondent undersection 143(3) read .with sections 144C(3) and 1448 of the lncome Tax Act tillthe disposal of this petition (ii) stay the operation of demand notice bearing No.ITBA/AST/S/1 5612021- 2211036220413(1), dated 07 .10.2021 [(Annexure ]P5)issued by the 1st Respondent under Section ['1 ]56 of the Act till the disposal of thispetition (iii) stay the operation of notice bearing No. ITBA/PNLlSl27AAl2021-2211036220461(1), dated 07.10.2021 (Annexure P6) issued by thel"tRespondent under section 274 rcad with section 270A ol the Act till thed isposal of this [petition.] |.A.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 ]tostay of the proceedings pending before the Dispute Resolution Panel, Pendingdisposal of the above writ [petition, ]in the interests of [justice ]and equity. Counsel for the Petitioner : SRI.T.SURYANARAYANA, ADV FOR SRI.K.RAGHAVENDRA RAO Counsel for the Respondents : Ms.K.MAMATA CHOUDARY The Court made the following OROER THE HONOURABLE SRI JUSTICE UJJAL AND THE HONOURABLE WRIT PETITION No.27596 of [2O21] ORDER: (Per Hon'ble [Sri ][Justice ][Ujjal ][Bhuyan)] Heard Mr. T.Suryanarayana, [learned ][Senior ][Counsel]appearing on behalf of [Mr. ][K.Raghavendra ][Rao, ][learned]counsel for the [petitioner ][and ][Ms. ][K'Mamata ][Choudary,]Counsel [for ][Income Tax ][Department ][for ][the]learned Standing respondents. Counsel for the Petitioner : SRI.T.SURYANARAYANA, ADV FOR SRI.K.RAGHAVENDRA RAO Counsel for the Respondents : Ms.K.MAMATA CHOUDARY The Court made the following OROER THE HONOURABLE SRI JUSTICE UJJAL AND THE HONOURABLE WRIT PETITION No.27596 of [2O21] ORDER: (Per Hon'ble [Sri ][Justice ][Ujjal ][Bhuyan)] Heard Mr. T.Suryanarayana, [learned ][Senior ][Counsel]appearing on behalf of [Mr. ][K.Raghavendra ][Rao, ][learned]counsel for the [petitioner ][and ][Ms. ][K'Mamata ][Choudary,]Counsel [for ][Income Tax ][Department ][for ][the]learned Standing respondents. 2. On 05.1I.2021, we [had ][passed ][the ][following] order: "This petition under Article [226 of ][the]Constitutiorl of India challenges [legality and ][validity ][of]the Assessment Order [dated ][07.10.2021 passed ][by]National Faceless Assessment [Center, ][Delhi ][i.e.,]respondent No.1 under [Section ][143(3) ][of ][the ][Income ][Tax]Act, 1961 [(briefly'the ]Act' [hereunder) read ][with ][Section]144C(3) and Section [1448 ]of [the ][said ][Act ][for ][the]Assessment Year 2018-19, [enhancing ][the ][returned]income of the [petitioner ][from ][Rs.49,36,15,990.00 ][to]Rs. 103,55,94,435.00 [by ][making ][several ][additions.]Grievance of the [petitioner ][is ][that the ][said]Faceless Assessment [was ][made ][by ][respondent ][No.l ][in] ) contravenlion of [the ][provisions contained ][in ][Section]laaB(l)(xvi)(b), (xxv)(a)(A), [(xxx) ][alrd ][(x-xxi) ][of ][the ][Act,]inasmuch as the initial [dra-ft ][assessment ][order was not]served upon the petitioner [and ][the final ][assessment]order was [passed, ]despite [tl.e ][petitioner ][frling ][objection]before the Dispute Resolution [Panel.] Referring to Sub-section [(9) ][of Section ][144B of ][the]Act, learned counsel [submits ][that the ][procedure]prescribed under Section 1448 of the [Act, providing ][for]Faceless Assessment, have [to ][be ][strictly ][complied ][with,]failing which an assessment order [shall ][be ][nonest.] Ms.Mamatha, learned Senior [Standing ][Counsel]for Income Tax Department, [submits ][that ][from ][the]impugned order of assessment, it [is ][not ][discernible]whether the above procedures [were ][complied ][with ][or not.]She prays for time to [obtain instructions ][and ][to ][file]affidavit. Issue notice. Learned Senior Standing [Counsel waives ][notice]for all the respondents. Respondents sha,ll file their [counter-afhdavit ][by]the next date. In the mearwhile, respondents are [dirccted ][not ][to]take any coercive steps [foliowing ][the ][Assessment Order]dated 07.10.2021, for the [assessment ][year ][2018- ][19."] 3. 3. Though counter affidavit [has ][not ][been ][filed by ][the]respondents, nonetheless Ms. K'Mamata [Choudary, ][learned]counsel submits on the basis of written [instructions.] Ms. K.Mamata [Choudary ][has ][explained ][in ][her ][submission]that assessing [officer ][could not ][consider ][the ][objections raised]by the [petitioner ][before ][the Dispute ][Resolution ][Panel ][as ][those]\\rere not [placed ][before ][the ][assessing ][officer'] 4. There is [a ][consensus ][at ][the Bar ][that ][in ][view ][of]non-compliance [of the ][procedure ][laid ][down ][under ][Sections]1448 and [l44C of the ][Income Tax ][Act' ][1961 ][(briefly referred]to hereinafter [as ][the ][Act'), the ][impugned ][assessment order]dated 07.10.202 [1 ][passed ][by the ][l"t ][respondent ][and ][the]consequential [demand ][notice ][dated ][07 ]['lO ]['2021 should ][be ][set]aside and [the matter ][remanded ][back ][to the ][assessing ][officer]i.e., 1"t respondent [after the ][Dispute Resolution ][Panel ][issues]the directions [under the ][aforesaid ][provision'] 5. Consequently [order ][dated 07'10'2021 ][and ][the]consequential [notice ][of demand dated ][07'10'2021 ][are ][hereby]set aside. [Matter ][is ][remanded ][back ][to ][the l"t ][respondent ][for]fresh [order ][of ][assessment ][in ][accordance ][with ][1aw]passing after affordigg [due ][opportunity ][of ][hearing to ][the petitioner'] 4 5. Consequently [order ][dated 07'10'2021 ][and ][the]consequential [notice ][of demand dated ][07'10'2021 ][are ][hereby]set aside. [Matter ][is ][remanded ][back ][to ][the l"t ][respondent ][for]fresh [order ][of ][assessment ][in ][accordance ][with ][1aw]passing after affordigg [due ][opportunity ][of ][hearing to ][the petitioner'] 4 6. Be it stated that the Dispute Resolution panelmay issue the necessary directions in accordan ce with lawwithin a period of six (O6) months from the date of receipt of acopy of this order. 7. This disposes of the Writ petition. Ho."vever, thereshail be no order as to costs. 8. As a sequel, miscellaneous applications pending,if any, in this Writ [petition, ]shall stand closed. SD/.B.SATYAVATHIDEPUTY REGISTRAR ,TRUE COPY// SECTION 'o [,1. ][,n" ][Additional ][/ ][Joint ][/ ][Deputy / ][Assistant Commissioner of ][lncome ][Tax ][/]' iffiffi:i;; officlt, m,tLtiar Faceless Assessment Centre' [Delhi']2. The Deputv [commissloie'*;i ][1"6;; ][Tax' ][Circle ][2(1) ][Siqnature Towers]oooosite Botanical [G';;ffi;' ][K;;ti;;"' ][tivaerabad ][telingana ][500084]" [;d$;;;;l ];'JIr;iJ;i'Hd;;,' [C";.i;i";;;' ]i;;; ;p'i, [;i ]Hvderabad'.reIansa [; ][;;;;-i'f ][- ][2' ][s ][i ][g ][n ][na ][atu ][500084'][re^ ][r^owers' ][o ][p ][po ][site]4. 6;;'ic i;s [nr. ][r<. ][nnE ][inriE ][r't ][o ][ne ][RA.o' Advocate ][J-oIW];. 6;; [d6 ][i; ][M.'.k.MAvrAin ][cHouoARY, ][Advocate ][[oPUc]]6. Two [CD CoPies]7. One spare [coPY] S.ABS HIGH COURT DATED:1710612022 ORDERWP.No.27596 ot [2021] DISPOSING OF [THE W.P]WITHOUT COSTS. 4 1Y\ [r.-]./.L0,,Ya-'i [r-)]2 3 [Jl]L ][202?].*:-.: