Wp/851/2014 Of Jolly Maker 1 Premises Cop-Op Society Ltd v. Deputy Commissioner Of Income-Tax Circle-12(2) Mumbai And Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONWRIT PETITION NO. 851 OF 2014 Jolly Maker 1 Premises Co-op Society Ltd. V/s.Deputy Commissioner of Income TaxCircle-12(2) Mumbai & Ors. ….Petitioner …Respondents ---- Mr. Firoze Andhyarujina, Senior Advocate a/w Mr. Manek Andhyarujina i/b Mr. Sameer Dalal for PetitionerMr. Suresh Kumar for Respondents ---- CORAM : K.R. SHRIRAM & N.J. JAMADAR, JJ DATED : 11[th] FEBRUARY 2022 P.C. : 1Petitioner is a co-operative society and has been assessed to tax sinceA.Y.-1977-1978. Petitioner declared the income under the heads of incomefrom house property and income from other sources. Petitioner is a soletrustee and representative assessee of Jolly Maker 1 Trust, which ownsNariman Bhavan premises and the income is clubbed by virtue of Section 60of the Income Tax Act 1961 (the Act) in the return of trust (which is an oraltrust) and tax paid. Hence, the returns filed by petitioner are also astrustees in capacity of representative assessee and is assessed, is acceptedand finalised by the Income Tax Department. 2For A.Y.-2002-2003, originally two separate returns were filed, one forsociety and second for trust in representative capacity. During theassessment proceedings, at the department’s instance revised returns were filed to club the income as representative assessee with that of society andassessment was completed under Section 143(3) of the Act. For A.Y.-2003-2004, 2004-2005, 2005-2006 and 2006-2007 income from house propertyand interest income assessed and taxed in the hands of petitioner includingincome of trust in representative capacity as per A.Y.-2002-2003 wascompleted under Section 143(3) of the Act. For A.Y.-2008-2009, 2009-2010,2010-2011 and 2011-2012 the assessment was completed under Section143(3) of the Act. For A.Y.-2012-2013 the assessment was processed underSection 143(1) of the Act. For these five years notice was issued underSection 148 and the notices were withdrawn vide orders of this court dated9[th] July 2014 and 25[th] July 2014 in Writ Petition (L) No.762 of 2014 withWrit Petition Nos.1159 of 2014, 1238 of 2014, 1240 of 2014 and 1419 of2014. Mr. Andhyarujina states that scrutiny assessment for petitioner forA.Y.-2018-2019 was also completed under Section 143(3) of the Actaccepting income of trust in representative capacity in the hands ofpetitioner. 3The present petition relates to A.Y.-2007-2008, where the assessmentwas processed under Section 143(1) of the Act. Petitioner received thenotice dated 21[st] November 2013 under Section 148 of the Act stating thatrespondents had reasons to believe that petitioner’s income for A.Y.-2007-2008 has escaped assessment within the meaning of Section 147 of the Act.Petitioner was provided reasons recorded for initiating reassessmentproceedings by a communication dated 14[th] November 2013. The reasons recorded, as submitted by Mr. Andhyarujina are identical to the reasonsrecorded for A.Y.-2008-2009, 2009-2010, 2010-2011, 2011-2012 and 2013-2013. Those notices for these five years beginning 2008-2009 have beenwithdrawn as recorded earlier in this order. Therefore, notice issued forA.Y.-2007-2008, which is impugned in this petition also could not survive.Since Mr. Suresh Kumar states he has no instructions to withdraw thenotice, we have no option but to quash and set aside the notice in view ofthe background recorded earlier in this order. 4Accordingly, notice dated 21[st] November 2013 issued under Section148 of the Act and consequently the order dated 27[th] January 2014 rejectingpetitioner’s objections are quashed and set aside. 5Petition disposed accordingly with no order as to costs. (N. J. JAMADAR, J.) (K.R. SHRIRAM, J.)