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2021 Supreme(Mad) 897
High Court of Judicature at Madras
Case No : W.P. Nos. 38185 & 38186 of 2016 & W.M.P. Nos. 32726 to 32729 of 2016 & W.M.P. Nos. 23280 to 23283 of 2017
Judges: THE HONOURABLE MR. JUSTICE S.M. SUBRAMANIAM
Parties : M/s. Thriveni Earthmovers Pvt. Ltd., Represented by its Executive Director & Authorized Signatory B. Karthikeyan, Salem Versus The Assistant Commissioner of Income Tax, Salem
Date of Judgment : 26-04-2021
Point of Law: Under Article 226 of the Constitution, has power to set aside a notice under section 147 of the Income Tax Act, 1961, if the conditions precedent for the exercise of the jurisdiction do not exist
Headnote:
Constitution of India,1950 - Article 226 - Income Tax Act, - Sections 147, 143 (2) , 143(1), 148 and 14A - Mines and Minerals (Development and Regulation) Act, 1957 - Section 30 - Business of iron ore mining services - Assessment - Notice of demand - Petitioner's return was processed under Section 143(1) petitioner was issued and intimation of same - Case of petitioner was selected for scrutiny and a notice was issued - Assessment order was passed under Section 143(3) of Act addition to the tune made to petitioner's income disallowance - Respondent issued a notice under Section 148 of Act seeking reopening of petitioner's income tax assessment for assessment year - Reasons for reopening of assessment as sought for by petitioner and it was furnished - Petitioner's return was processed and petitioner was issued an intimation of the same - Case of petitioner was selected for scrutiny and a notice
Finding of the court: Reopening proceedings by following procedures as contemplated. High Court cannot adjudicate disputed facts and materials to form an opinion in a writ proceedings - Empowered to scrutinize process, through which, decision is taken and the reasons and in consonance with the statutory requirements, but not decision by itself - Evidences produced by respective parties and such an adjudication must be allowed to be done by competent authorities under provisions of Statutes by following procedures as contemplated and by affording opportunity - Respondent could able to establish sufficient materials are available for the purpose of reopening of assessment for Assessment
Result: Writ petitions dismissed
Judgment :-
(Common Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus, calling for the entire records of the 1st respondent contained in its impugned order bearing Proceedings No.AABCT6759R/2009-10 & Proceedings No.AABCT6759R/2010-11, dated 13.10.2016, and to quash the same, and to consequently forbear the respondents or any of their subordinates, agents or any other person claiming under the respondents, from in any manner re-assessing the petitioner's income for the assessment year 2009-10 & 2010-11 Under Section 147 of the Income Tax Act, 1961.)
Common Order
The writs on hand are filed, challenging the proceedings dated 13.10.2016, passed by the Assistant Commissioner of Income Tax, Central Circle, Salem, disposing of the objections raised by the petitioner/assessee against the initiation of action under Section 147 of the Income Tax Act, 1956, with reference to the Assessment Years 2009-10 & 2010-11.
2. The petitioner is a Company, registered under Companies Act, 1956 and it is engaged in business of iron ore mining services, transportation and handling of iron ore and limestone, quarrying of blue metals boulders and sale of blue metals.
3. In respect of W.P.No.38185 of 2016, the petitioner states that, they filed its return of income for the Assessment Year 2009-10 on 29.09.2009, declaring a total income of Rs.136,50,44,330/-. The petitioner's return was processed under Section 143(1) on 31.03.2011 and the petitioner was issued and intimation of the same. The case of the petitioner was selected for scrutiny and a notice was issued under Section 143 (2) of the Income Tax Act dated 19.08.2010 was issued. Thereafter, the assessment order was passed under Section 143(3) of the Act on 14.09.2011. An addition to the tune of Rs.18,94,117/- was made to the petitioner's income, in view of a disallowance under Section 14A of the Act. Accordingly, a notice of demand of a sum of Rs.6,43,810/- dated 14.09.2011 was also issued to the petitioner. Under these circumstances, the respondent issued a notice under Section 148 of the Act dated 25.09.2014, seeking reopening of the petitioner's income tax assessment for the assessment year 2009-10. The reasons for reopening of the assessment as sought for by the petitioner and it was furnished.
4. In respect of W.P.No.38186 of 2016, the petitioner states that, they filed its return of income for the Assessment Year 2010-11 on 29.09.2010, declaring a total income of Rs.174,37,64,170/-. The petitioner's return was processed and the petitioner was issued an intimation of the same. The case of the petitioner was selected for scrutiny and a notice was issued under Section 143 (2) of the Income Tax Act dated 29.08.2011 was issued. Thereafter, the assessment order was passed under Section 143(3) of the Act on 18.12.2012. An addition to the tune of Rs.85,08,293/- was made to the petitioner's income. Accordingly, a notice of demand of a sum of Rs.42,61,760/- dated 18.12.2012 was also issued to the petitioner. Under these circumstances, the respondent issued a notice under Section 148 of the Act dated 26.09.2014, seeking reopening of the petitioner's income tax assessment for the assessment year 2010-11. The reasons for reopening of the assessment as sought for by the petitioner and it was furnished.
5. On 13.04.2016, the petitioner wrote a letter to the respondent, seeking reasons on the basis of which the petitioner's income tax assessment had been reopened by way of the above notice dated 28.03.2016 under Section 148 of the Income Tax Act. The petitioner intimated the respondent that it had already filed its return for the said assessment year electronically, and it had now re-filed the same electronically in response to the respondent's notice on 11.04.2016 under Section 143(2) of the Act. On 06.05.2016, the Joint Commissioner of Income Tax furnished the purported reasons on the basis of which the notice under Section 148 had been
