Wp/9835/2022 Of Unifi Capital Private Limited v. The Income Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 25.04.2022 CORAM : THE HONOURABLE MR.JUSTICE R.SURESH KUMAR WRIT PETITION NO.9835 OF 2022ANDW.M.P.NOS.9542, 9543 & 9544 OF 2022 UNIFI Capital Private Limited,No.11, Kakani Towers,15, Khader Nawaz Khan Road,Nungambakkam, Chennai - 600 006.Represented by its Director,Narendranath.K. ... Petitioner The Income Tax Officer,Corp Ward 6(1), Wanaparthy Block,121, Mahatma Gandhi Road,Nungambakkam, Chennai - 600 034. ... Respondent PRAYER:- Writ Petition under Article 226 of the Constitution of Indiapraying for issuance of a Writ of Certiorari calling for therecords on the file of the respondent and quash the impugnedorder under Section 148A(d) of the Income Tax Act, 1961, dated29.03.2022 in DIN & Notice No:ITBA/AST/F/148A/2021-22/1041985851(1) and the consequential notice u/s.148 dated 29.03.2022 inITBA/AST/S/148_1/2021-22/ 1041993876(1) for the Assessment Year2018-19. The prayer sought for herein is for a Writ of Certioraricalling for the records on the file of the respondent and quashthe impugned order under Section 148A(d) of the Income Tax Act,1961 dated 29.03.2022 in DIN & Notice No:ITBA/AST/F/148A/ 2021-22/1041985851(1) and the consequential notice u/s.148 dated29.03.2022 in ITBA/AST/S/148_1/2021-22/1041993876(1) for theAssessment Year 2018-19. 2. In respect of the Assessment Year 2018-19 against thepetitioner assessee, the respondent Revenue wanted to reopen theassessment under Section 147 of the Income Tax Act, 1961 (inshort 'the Act'). Hence, before issuing notice under Section 148of the Act, they wanted to exhaust the procedure contemplatedunder Section 148A of the Act. Accordingly, notice under Clause(b) of Section 148A of the Act was issued on 16.03.2022directing the petitioner to give reply on or before 26.03.2022. 3. On receipt of the said notice, the petitioner assessee on23.03.2022 sought one week time to reply. Though the saidrequest having been made and was registered in the web portal,no specific reply had been given by the Revenue extending thetime. 4. Nevertheless, the petitioner had given reply on28.03.2022 which was received and acknowledged by therespondent, however on 29.03.2022, order was passed by theRevenue stating that, no reply had been filed, therefore, therecan be no objection from the petitioner for issuing notice underSection 148 of the Act and accordingly, on the same date i.e.,on 29.03.2022, notice under Section 148 was issued. 5. Therefore, challenging the order dated 29.03.2022 passedunder Clause (b) of Section 148A of the Act, this present WritPetition has been filed. 6. Heard Mr.V.Vikram, learned counsel for the petitionerassessee, who having reiterated the aforesaid factual matrix,would seek indulgence of this Court on the ground that, if thepetitioner's reply dated 28.03.2022 is considered andthereafter, if they pass an order, that would satisfy thepetitioner's case, in the impugned order, the Revenue has statedthat the petitioner has not even replied to the show causenotice. 7. Heard Mr.A.N.R.Jayapratap, learned Junior StandingCounsel appearing for the respondent Revenue, who would submitthat, time was given in the notice dated 16.03.2022 upto 26.03.2022, before which, since no reply was given, on29.03.2022 the order impugned was passed. Therefore, the reasoncited in the order that, no reply had been given by thepetitioner assessee is to be sustained and therefore, theimpugned order does not warrant any interference from this Court. 8. I have considered the rival submissions made by bothsides and have perused the materials placed before this Court. 9. Though time was given upto 26.03.2022 to give a reply,just few days of additional time sought for i.e., one week timefrom 26.03.2022 was sought for and that request was alsoregistered in the web portal, therefore, it can be presumed thatthe said request has been made. 26.03.2022, before which, since no reply was given, on29.03.2022 the order impugned was passed. Therefore, the reasoncited in the order that, no reply had been given by thepetitioner assessee is to be sustained and therefore, theimpugned order does not warrant any interference from this Court. 8. I have considered the rival submissions made by bothsides and have perused the materials placed before this Court. 9. Though time was given upto 26.03.2022 to give a reply,just few days of additional time sought for i.e., one week timefrom 26.03.2022 was sought for and that request was alsoregistered in the web portal, therefore, it can be presumed thatthe said request has been made. 10. As per the said request within the one week time i.e.,on 28.03.2022, a reply had been filed and the same also has beenacknowledged by the Revenue stating that it is anacknowledgment, for which, e-proceedings response. Despite thesefactors, since the impugned order on 29.03.2022 was passedstating the reason that, the petitioner assessee has not givenreply, in the considered opinion of this Court, may not bejustifiable as that would amount to violation of Principles ofNatural Justice. 11. In that view of the matter, this Court is inclined todispose of this Writ Petition with the following orders: (i) That the impugned order is set aside andthe matter is remitted back to the respondent,where the reply given by the petitioner dated28.03.2022 shall be considered by the Revenue andin this regard, if need arises, an opportunity ofbeing heard should be given to the petitionerwithin two weeks from the date of receipt of a copyof this order and thereafter, the Revenue canproceed and pass final orders. (ii) Till such final order is passed, thenotice issued under Section 148 of the Act dated29.03.2022 shall be kept in abeyance. (iii) It is needless to mention that,depending upon the outcome of the final order to bepassed, as indicated above, the further course ofaction either to proceed with Section 148 or towithdraw the same can also be taken by the Revenue. 12. With these orders, this Writ Petition is disposed of.No costs. Consequently, connected miscellaneous petitions areclosed. Sd/-Assistant Registrar(CS V) //True Copy// Sub Assistant Registrar Anu/SglTo The Income Tax Officer,Corp Ward 6(1), Wanaparthy Block,121, Mahatma Gandhi Road,Nungambakkam,Chennai - 600 034. +1cc to Mr.A.P.Srinivas, Advocate, S.R.No.28067+1cc to Mr.Subbaraya Aiyar Padmanabhan, Advocate, S.R.No.28589 W.P.NO.9835 OF 2022 SKM(CO)PBS/12/07/2022