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2021 Supreme(Mad) 1378
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
J. NISHA BANU, J.
M/s. Vetrivel Minerals, (V V Minerals), Rep. by its Managing Partner, S. Vaikundarajan & Another - Petitioners
Versus
The Assistant Commissioner of Income Tax, Central Circle-2, Income Tax Staff Quarters Complex, Madurai - Respondent
W.P.(MD) Nos.11261, 11271, 11272, 11273 & 11765 of 2021 & connected miscellaneous petitions
Decided On : 03-08-2021
For the Petitioner:R. Gopinath, Advocate.
For the Respondents: T.R. Senthil Kumar, Senior Standing Counsel assisted by K.G. Usha Rani, Standing Counsel.
Headnote:
Constitution of India,1950 - Article 226 - Income Tax Act - Section 153A - Indian Evidence Act - Section 65-B - Assessment Order - Challenged - -Petitioners assailed impugned orders contending that violation of principles of natural justice, arbitrary, mechanical and without any independent application of mind and also stating that Income Tax Department has not discharge burden of proof, proving that income determined and sought to be taxed were not from materials seized during time of search - Whether adequate or not, does not alter fundamentally discretionary nature of High Court's writ jurisdiction and therefore does not create an absolute legal bar on exercise of writ jurisdiction by a High Court - Held, In view of violation of principles of natural justice and also due to the non compliance of Section 65(B) of Indian Evidence Act, this Court feels that it is a fit case for setting aside assessment orders. Alternative remedy under statute is in case of violation of principles of natural justice should be an effective one capable of remedying violations by providing afresh, but however, it remains fact that after amendment to Section 251(1)(a) of Income Tax Act CIT(Appeals) does not have power of remand. Therefore, since petitioners have made out a clear case of violation of principles of natural justice and the statute, this Court feels that it is a fit case for interfering with the impugned orders - Writ petitions are allowed
ORDER :
(Prayer: Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to call for the entire records relating to the impugned proceedings of the respondent dated 24.06.2021 in PANAAHFV2400N, DIN & Order No.ITBA/REC/S/154_1/2021-22/1033945481(1) for the assessment years 2013-14 to 2019-20 and the consequential rectification order dated 01.07.2021 and quash the same.
Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to call for the entire records relating to the impugned proceedings of the respondent dated 16.06.2021 in PANAAAFV1613J, DIN & Order No.ITBA/AST/S/153A/2021-22/1033501501(1) for the Assessment Year 2017-18 and quash the same.
Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to call for the entire records relating to the impugned proceedings of the respondent dated 16.06.2021 in PANAAAFV1613J, DIN & Order No.ITBA/AST/S/153A/2021-22/1033509916(1) for the Assessment Year 2018-19 and quash the same.
Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to call for the entire records relating to the impugned proceedings of the respondent dated 16.06.2021 in PAN-AAAFV1613J, DIN & Order No.ITBA/AST/S/143(3)/2021-22/1033511435(1) for the Assessment Year 2019-20 and quash the same.
Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to (i)call for the entire records relating to the impugned proceedings of the respondent dated 24.06.2021 in PANAAHFV2400N for the Assessment Year 2013-14 and quash the same; (ii)call for the entire records relating to the impugned proceedings of the respondent dated 24.06.2021 in PAN-AAHFV2400N for the Assessment Year 2014-15 and quash the same; (iii)call for the entire records relating to the impugned proceedings of the respondent dated 24.06.2021 in PAN-AAHFV2400N for the Assessment Year 2015-16 and quash the same; (iv)call for the entire records relating to the impugned proceedings of the respondent dated 24.06.2021 in PAN-AAHFV2400N for the Assessment Year 2016-17 and quash the same; (v)call for the entire records relating to the impugned proceedings of the respondent dated 24.06.2021 in PAN-AAHFV2400N for the Assessment Year 2017-18 and quash the same; and (vi)call for the entire records relating to the impugned proceedings of the respondent dated 24.06.2021 in PANAAHFV2400N for the Assessment Year 2019-20 and the consequential rectification order dated 01.07.2021 quash the same.)
1. W.P.(MD) No.11261 of 2021 is field by the petitioner challenging the common impugned order passed by the respondent for the Assessment Years 2013-2014 to 2019- 2020.
W.P.(MD) No.11271 to 11273 of 2021 are filed by the petitioners challenging the individual assessment orders for the Assessment Years 2017-2018 to 2019-2020.
2. The Assessment Orders in the above writ petitions are passed under Section 153A of the Income Tax Act pursuant to a search conducted on 25.10.2018 in VV group of companies. The facts in all the cases are almost identical and the orders came to be passed pursuant to the group search conducted by the Income Tax Department. The ground of challenge are also identical and all the writ petitions are disposed of by this common order.
3. The petitioners assailed the impugned orders contending that it is in violation of the principles of natural justice, arbitrary, mechanical and without any independent application of mind and also stating that the Income Tax Department has not discharged the burden of proof, proving that the income determined and sought to be taxed were not from the materials seized during the time of search. The learned counsel for the petitioners relied on the following judgments namely,
a. M/s. All Cargo Global Logistics Ltd., vs. DCIT(ITA Nos.5018 to 5022 & 5059/M/10 dated 23.05.2012)
b. (2015) 374 ITR 645 – Commissioner of Income Tax vs. Continental Warehousing Corporation Ltd.
c.
