+W.p.(C) 401/2024, Cm Appl. 1816/2024Am Mining India Private Limited v. O R D E R

$~74 IN THE HIGH COURT OF DELHI AT NEW DELHI +W.P.(C) 401/2024, CM APPL. 1816/2024AM MINING INDIA PRIVATE LIMITED ..... PetitionerAM MINING INDIA PRIVATE LIMITED ..... Petitioner Through:Mr. Ajay Vohra, Sr. Adv. withMr.AvishkarSinghvi,Mr.DushyantManocha,Ms.Ananya Ghosh, Ms. D. Bose,Mr. Deokinandan Sharma, Ms.Devika Sikka, Advs. versus OFFICE OF THE ASSISTANT COMMISSIONER OFINCOME TAX CIRCLE 1(1), DELHI & ORS. ..... Respondent Through:Mr. Sanjay Kumar, Ms. Easha,Ms. Hemlata Rawat, Advs.Mr. Sumit Goel, Ms. Sreeparna,Mr. Adrish Dutta, Advs. for R-4. CORAM:HON'BLE MR. JUSTICE YASHWANT VARMAHON'BLE MR. JUSTICE PURUSHAINDRA KUMARKAURAV O R D E R %15.01.2024 1.This writ petition has been preferred seeking the following reliefs:- “a) Issue a Writ of Mandamus directing Respondent No. 2 to giveeffect to the findings in the “Particulars of mistake(s)” in the Orderdated 28.11.2023 under Section 154 of the Income Tax Act, 1961and rectify the clerical errors thereunder; b) Issue a Writ of Certiorari quashing all actions initiated forrecovery of demand in terms of the intimation under Section143(1)(a) of the Act dated 19.08.2023, including Impugned Noticesdated [Nil] issued by Respondent No. 1; c) Issue a Writ of Mandamus directing Respondent No. 1 to lift thelien/attachmentonthePetitioner’sbankaccountswith Respondent No. 3 and Respondent No. 4; d) Declare that no action of recovery can be initiated byRespondent No. 1 basis the demand raised in the intimation underSection 143(1)(a) of the Act dated 19.08.2023; e) Issue any other appropriate writ, order or directions as the natureand circumstances of the case may require that this Hon’ble Courtmay deem fit.” 2.Mr. Vohra, learned senior counsel appearing in support of thewrit petition has drawn our attention to the rectification order dated 28November 2023 and which had accepted the contention of thepetitioners that the demand of ₹25,65,87,020/- was liable to be deleted. It however appears from the record, that the order ultimatelyfailed to give effect to the deletion. It is in the aforesaid backdrop thatwe had called upon Mr. Kumar, learned counsel appearing for therespondent, to obtain instructions. 3.Pursuant to our directions, the stand of the Department asreflected in the instructions reads as follows:- “While filing the return of income for A.Y.2022-23, notionalinterest on zero coupon debentures amounting to Rs.91,49,91,913/-was disclosed as interest received and said amount was shown asdecrease in profit/increase in loss under ICDS under the accountingpolicies. However, as per Intimation u/s.143(1) dated 19.08.2023 inthis case, sum of Rs. 91,49,91,913/- representing decrease in profitmade under ICDS was disallowed resulting in computing totalincomeofRs.83,72,92,330/-andraisingdemandofRs.25,65,87,020/-. However, CPC itself passed order u/s. 154 on28.11.2023 stating that the aforesaid mistake is being rectified buteven in order u/s.154 aforesaid addition made under ICDScontinued and demand of Rs.25,65,87,020/- was retained. xxx 2. After completion of processing of the return of income, therectification right in this case has been transferred from CPC, asthe case is selected under scrutiny. In these circumstances, it is notpossible to carry out any corrective action at CPC as therectification rights in this case is with FAO. Now, the jurisdictionalAssessing Officer has to verify the facts of the case and passManual rectification Order for A.Y.2022-23 through ITBA. However, as the scrutiny assessment proceedings is under progressand the rectification rights are with FAO, the ITBA portal will notallow the AO to pass rectification order. Since it is W.P. matter, aseparate mail has been sent to the ITBA team to transfer therectification rights in this case from FAO to JAO and also enablethe JAO to pass manual rectification order through ITBA. TheA.O. may follow up with the ITBA team for enabling the A.O. topass manual order in this case.” However, as the scrutiny assessment proceedings is under progressand the rectification rights are with FAO, the ITBA portal will notallow the AO to pass rectification order. Since it is W.P. matter, aseparate mail has been sent to the ITBA team to transfer therectification rights in this case from FAO to JAO and also enablethe JAO to pass manual rectification order through ITBA. TheA.O. may follow up with the ITBA team for enabling the A.O. topass manual order in this case.” 4.In view of the aforesaid, it is manifest that the demand of₹25,65,87,020/- would not sustain. All that is left is for the respondents to now pass a manual rectification order or in thealternative to attend to the subsequent and second application forrectification which has been made by the writ petitioner itself. 5.We, accordingly dispose of the writ petition and grant liberty tothe respondents to pass appropriate formal orders accepting the effectof the rectification order dated 28 November 2023. The lien andattachment on the bank accounts of the writ petitioner shall standlifted forthwith. We direct the respondent nos. 3 and 4 to proceed interms of the directions aforenoted. 6.The writ petition along with pending application shall standdisposed of on the aforesaid terms. YASHWANT VARMA, J. PURUSHAINDRA KUMAR KAURAV, J.JANUARY 15, 2024/neha