Wtax/393/2020 Of Ajay Kumar Katta v. The Principal Commissioner Of Income Tax

Case :- WRIT TAX No. - 393 of 2020 Petitioner :- Ajay Kumar Katta Respondent :- The Principal Commissioner Of Income TaxCounsel for Petitioner :- Ranvijay Chaubey,Ankit Saran,Krishna Dutt Tiwari,Shubham Agrawal Counsel for Respondent :- Gaurav Mahajan Hon'ble Saumitra Dayal Singh,J.Hon'ble Shiv Shanker Prasad,J. In re : C.M. Amendment Application No. of 07 of 2022. For the reasons contained in the affidavit filed in support of theamendment application, the application is allowed. Let necessary amendment be incorporated within a week. Order Date :- 30.11.2023SA (Shiv Shanker Prasad, J.) (S.D. Singh, J.) Court No. - 39 Case :- WRIT TAX No. - 393 of 2020 Petitioner :- Ajay Kumar Katta Respondent :- The Principal Commissioner Of Income TaxCounsel for Petitioner :- Ranvijay Chaubey,Ankit Saran,Krishna Dutt Tiwari,Shubham Agrawal Counsel for Respondent :- Gaurav Mahajan Hon'ble Saumitra Dayal Singh,J.Hon'ble Shiv Shanker Prasad,J. 1. Heard Shri Shubham Agrawal, learned counsel for the petitionerand Shri Gaurav Mahajan, learned counsel for the revenue. 2. Present writ petition is directed against the order dated25.02.2020 passed by Principal, Commissioner of Income Tax,Moradabad, passed under Section 127 of the Income Tax Act, 1961(hereinafter referred to as 'the Act'), whereby he transferred theassessment case of the petitioner arising from the searchproceedings conducted under Section 132 (1) of the Act from ITO-2(1), Moradabad to Central Circle 16, New Delhi. 3. At the stage of entertaining the writ petition a co-ordinate benchhas passed the below quoted order : "The contention of learned counsel for the petitioner is that the impugnedorder under Section 127 of the Income Tax Act has been passed withoutopportunity of hearing to the assessee inasmuch as the notice dated14.02.2020 fixing 19.02.2020 was served on 18.02.2020 and, within such ashort period, the petitioner could not appear, therefore, on 21.01.2020, hemoved an application for adjournment of the date. Application seekingadjournment was served upon the Commissioner, but no further date ofhearing was informed to the petitioner and straightway, on 25.02.2020,transfer order was passed under Section 127 of the Income Tax Act. Sri Gaurav Mahajan has accepted notice for the respondent. He prays for 10days' time to seek instructions so as to ascertain whether after receivingadjournment request, any notice or information was given to the petitioner asregards the date for hearing of the matter. He shall also seek instructions asto whether any subsequent development has taken place after the order dated25.02.2020. Put-up this matter on 8th October, 2020 in the additional cause list." 4. The writ petition has remained pending for three years. Whilepleadings have been exchanged, no interim order came to begranted to the petitioner as may have stayed the operation andeffect of the transfer order dated 25.02.2020 or the assessmentproceedings before the authority to whom the petitioner'sassessment case was transferred. 5. In paragraph 3(iv) and paragraph 3(v) of the counter affidavitfiled by the revenue, it has been averred as below : "(iv) That it is most respectfully submitted that subsequent to the order dated25.02.2020 passed u/s 127 of the Act, the petitioner has been participating inassessment proceedings for different assessment years before the Asstt. C.I.T,Central Circle-16, Delhi. In respect of A/Y-2018-19 the assessment proceedings carried out by theACIT, Central Circle-16, Delhi has culminated in passing of assessment orderdated 19.04.2021 u/s 143 (3) of the Act. A photo copy of the AssessmentOrder dated 19.04.2021 u/s 143 (3) of the Act is enclosed and annexedherewith as Annexure C.A-1. 5. In paragraph 3(iv) and paragraph 3(v) of the counter affidavitfiled by the revenue, it has been averred as below : "(iv) That it is most respectfully submitted that subsequent to the order dated25.02.2020 passed u/s 127 of the Act, the petitioner has been participating inassessment proceedings for different assessment years before the Asstt. C.I.T,Central Circle-16, Delhi. In respect of A/Y-2018-19 the assessment proceedings carried out by theACIT, Central Circle-16, Delhi has culminated in passing of assessment orderdated 19.04.2021 u/s 143 (3) of the Act. A photo copy of the AssessmentOrder dated 19.04.2021 u/s 143 (3) of the Act is enclosed and annexedherewith as Annexure C.A-1. (v) That it is further most respectfully submitted that subsequent to the orderof transfer the petitioner is participating in assessment/reassessmentproceedings being carried out by the ACIT, Central Circle-16, Delhi forvarious other assessment years. For the A/Y 2014-15 notice u/s 148 of the Act dated 20.03.2021 had been issued by the Asstt. Commissioner of Income Tax, Central Circle 16, NewDelhi requiring the assessee to submit a return of income for the saidassessment year within 15 days. In response the assessee had furnished itsreturn of income for A/Y-2014-15 on 07.04.2021 and has also led itsobjections to the reasons recorded. Photocopies of the Notice issued u/s 148of the Act, copy of Return and objections of the assessee in respect of A/Y -2014-15 are collectively enclosed and annexed herewith as Annexure C.A-2. Similarly for the A/Y-2017-18 notice u/s 148 of the Act dated 01.03.2021 hadbeen issued by the Asstt. Commissioner of Income Tax, Central Circle 16,New Delhi requiring the assessee to submit a return of income for the saidassessment year within 15 days. In response the assessee had furnished itsreturn of income for A/Y-2017-18 on 20.03.2021 and has also filed itsobjections to the reasons recorded. Photocopies of the Notice issued u/s 148of the Act, copy of Return and objections of the assessee in respect of A/Y -2017-18 are collectively enclosed and annexed herewith as Annexure C.A- 3." 6. In reply thereto, the petitioner furnished his reply inparagraph 6 of the rejoinder affidavit, it has been averred asbelow : "6. That content of paragraph 3(iv) and 3(v) of the counter affidavit aredenied, except what is matter of record. It is submitted that the petitioner hasfiled the writ petition in this Hon'ble court in June 2020 itself and since nointerim order has been granted, hence the petitioner was compelled toparticipate in the assessment proceedings in Delhi to avoid any ex-parteassessment order, creating huge liability upon the petitioner. Though thepetitioner has participated under protest, yet the petitioner was continuouslypursuing its remedy before this Hon'ble court challenging the transfer of hiscase. It is submitted that if order transferring the case of the petitioner to NewDelhi is set aside by this Hon'ble court, then all the consequentialreassessment orders passed by the assessing authority would automatically bewithout jurisdiction and void-ab-initio. It is submitted that if the foundationgoes then the superstructure automatically falls. It is submitted that for the Assessment Year 2018-19, the return income of the petitioner has beenaccepted by the assessing authority as would be evident from Annexure No.CA-1. It is submitted that for the Assessment Year 2014-15 also, reply filed by thepetitioner was found to be satisfactory and hence no addition was made andthe returned income of the petitioner has been accepted which has alreadyenclosed by the petitioner alongwith the supplementary affidavit filed by it. Assessment Year 2018-19, the return income of the petitioner has beenaccepted by the assessing authority as would be evident from Annexure No.CA-1. It is submitted that for the Assessment Year 2014-15 also, reply filed by thepetitioner was found to be satisfactory and hence no addition was made andthe returned income of the petitioner has been accepted which has alreadyenclosed by the petitioner alongwith the supplementary affidavit filed by it. For the Assessment Year 2017-18, assessing authority has passed theprotective assessment order in the hands of the petitioner and has madesubstantial addition in the hands of Mohit Garg. It is submitted that thepetitioner has already filed an appeal before CIT(Appeals) against theassessment order passed for the Assessment Year 2017-18. It is submitted thatthe aforesaid appeal is still pending adjudication. Photocopy of theassessment order passed for the Assessment Year 2017-18 both in the case ofthe petitioner and Mohit Garg alongwith the memo of appeal having beenfiled by the petitioner is enclosed as Annexure No. RA-1collectively." 7. Thus, it is admitted to the petitioner that in absence of anyinterim protection granted in these proceedings, the AssessingAuthority proceeded to pass assessment orders in the case of thepetitioner for the Assessment Years 2014-15, 2017-18 and 2018-19, all of date 20.03.2022. Further, he would state that the assesseehas preferred statutory appeal for the Assessment Year 2017-18before the Appellate Authority at New Delhi. That appeal is stillpending. For the other two Assessment Years 2014-15 and 2018-19, there is no surviving dispute between the parties. 8. In view of the facts noted above, we find that the turn of eventsarising from the search has completed. Statutory remedy of appealhas arisen to the petitioner. It has also been availed. Thus, we findno real grievance surviving as on date as may require ouradjudication at this belated stage. 9. It is undeniable that the assessee was exposed to assessmentproceedings as a result of the search proceedings. Though theassessee may have had a right to claim that he was liable to beassessed at Moradabad, it is a fact that the assessment proceedingswere transferred under an order passed under the Act. Also, theassessee has participated in the proceedings before the authority towhom the case was transferred and has availed the remedy ofappeal thereagainst. 10. At such late stage, we are disinclined to entertain the issue onmerits of the transfer order as the assessment had to be made in thecase of the assessee, the grievance that he had raised at Moradabadand not at New Delhi is seen to have been rendered practicallyacademic. 11. In view of the above facts, we are disinclined to offer anyinterference in exercise of our extra ordinary jurisdiction underArticle 226 of the Constitution of India at this belated stage. 12. Accordingly, the writ petition is dismissed. Order Date :- 30.11.2023 SA (Shiv Shanker Prasad, J.) (S.D. Singh, J.)