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BHARGAV D. KARIA, NIRAL R. MEHTA
Rohtak Panipat Tollway Private Limited – Appellant
Versus
Deputy Director of Income Tax, CPC – Respondent
ORDER :
Bhargav D. Karia, J.
1. Heard learned advocate Mr. Dhinal Shah for the petitioner and learned advocate Mr. Dev D. Patel for learned Senior Standing Counsel Mr. Varun Patel for the respondents.
2. Rule returnable forthwith. Learned advocate Mr. Patel waives service of notice of Rule for the respondents.
3. Having regard to the controversy in the narrow compass arising in this petition and with the consent of the respective learned advocates appearing for the parties, the matter is taken up for hearing.
4. The brief facts of the case are that the petitioner a Private Limited company registered under the provisions of the Companies Act filed return of income for the Assessment Year 2022-23 declaring total income of loss amounting to Rs.1,84,28,30,407/-.
4.1 It is the case of the petitioner that the petitioner received a notice under Section 139(9) of the Act on 14th December 2022 from the respondent No.1 – Deputy Director of Income Tax, CPC, Bengaluru raising defects namely non-submission of Tax Audit Report under Section 44AB of the Act with the Income Tax Return on the ground that Total Sales, Turnover or Gross Receipts exceed the thresholds specified under the Act i.e. Rs.10,00,0
Excess provisions written back do not constitute 'gross receipts' under Section 44AB, thus not necessitating a Tax Audit Report.
Exceptional items from a resolution plan do not count as gross receipts under Section 44AB, thus invalidating the order declaring the return defective.
Compliance with statutory requirements under Income Tax Act is essential even if a party claims misunderstanding; genuine hardship must be assessed to condone filing delays.
The denial of tax exemption based on non-filing of required reports can be a curable defect, emphasizing tax on income rather than on total receipts.
The absence of reasons in administrative orders violates natural justice, necessitating adherence to fair play and the exhaustion of alternate remedies before judicial intervention.
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