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2022 Supreme(Mad) 261
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
M. Sundar, J.
The Ramco Cements Ltd., Represented by its Authorised Signatory T. Mathivanan – Petitioner
Versus
National Faceless Assessment Centre, Represented by its Pr. Chief Commissioner of Income Tax, New Delhi & Another – Respondents
W.P(MD) No. 1631 of 2022 & W.M.P.(MD) No. 1425 of 2022
Decided On : 03-02-2022
Advocate Appeared:
For the Petitioner:P.J. Rishikesh, Advocate.
For the Respondent: N. Dilipkumar, Senior Standing Counsel.
Headnote:
Income Tax Act, 1961 - Sections 271 (1)(c) and 143(3) r/w. 144B - Constitution of India,1950 - Article 226 - Post assessment order - Whether standards procedures and processes for effective functioning of National Faceless Penalty Centre have been put in place with approval of CBDT- Aforementioned impugned order had been uploaded in official website same has been downloaded from official website and a photocopy of hardcopy of same has been placed on record - 9This also emanates from faceless assessment under Section 143(3) r/w. Section 144B & C of IT Act is the reason given in support of dispense with prayer - Owing to case on hand this Court finds reason given for dispense with prayer to be acceptable - Held, Before proceeding further this Court makes it clear that the short forms and short references used in earlier proceedings made in listing on will continue to be used in instant order also - To be noted aforementioned proceedings of this Court shall be read as an integral part and parcel of this order - Adverting to aforementioned earlier proceedings learned Revenue Counsel submits that instructions with specificity on96. same are awaited but main matter can be disposed of leaving those two aspects open - Reasons are writ petitioner assessee has asked for a personal hearing vide objections this personal hearing is not a matter of right but it is discretion of Chief Commissioner or Director General in charge of Regional Faceless Penalty Centre - Impugned order does not say anything about whether request for personal hearing was acceded to or not - Writ Petition is disposed of - WMP is disposed of as closed.
JUDGMENT :
(Prayer: Writ Petition filed under Article 226 of Constitution of India, to issue a Writ of Certiorari, calling for the records of the 1st respondent in the impugned order dated 17.01.2022 bearing No.DIN-ITBA/PNL/F/271(1) (c)/2021-22/1038807997(1) for the Assessment Year 2016-2017 passed under Section 271 (1)(c) of the Income Tax Act, 1961 and quash the same.)
1. Read this in conjunction with and in continuation of earlier proceedings made in the previous listings on 31.01.2022 which reads as follows:
'Proceedings in W.M.P.(MD)No.1423/2022 in W.P.(MD)No. 1631 of 2022 dated 31.01.2022:
In the captioned Writ Miscellaneous Petition [WMP] an order dated 17.01.2022 being an order under Section 271(1)(c) of the Income Tax Act, 1961 [penalty proceedings] has been assailed.
2. The aforementioned impugned order had been uploaded in the official website, the same has been downloaded from the official website and a photocopy of the hardcopy of the same has been placed on record. This also emanates from faceless assessment under Section 143(3) r/w. Section 144B & C of IT Act is the reason given in support of dispense with prayer.
3. Owing to the facts and circumstances of the case on hand this Court finds the reason given for the dispense with prayer to be acceptable. Therefore, captioned WMP is ordered as prayed for.'
Proceedings in W.P.(MD)No.1631 of 2022 dated 31.01.2022:
'In the captioned main writ petition an order dated 17.01.2022 bearing reference ITBA/PNL/F/271(1) (c)/2021-22/1038807997(1) [hereinafter 'impugned order' for the sake of convenience and clarity] made by the first respondent regarding assessment year 2016-17 [hereinafter 'said AY' for the sake of convenience and clarity] qua writ petitioner assessee has been assailed. This 17.01.2022 order imposing penalty has been made under Section 271(1)(c) of 'the Income Tax Act, 1961' [hereinafter 'IT Act' for the sake of brevity, convenience and clarity].
2. Short facts shorn of elaboration or in other words facts that are imperative for appreciating the proceedings before this Court are that an assessment order dated 22.06.2021 [page No.63 of paper book] came to be made regarding the assessee qua said AY; that this assessment order was preceded by the DRP [Dispute Resolution Panel] route; that this assessment order is pursuant to CASS [Computer Assisted Selection for Scrutiny]; that broadly three issues arose viz., (a) Transfer Pricing [TP], (b) Railway Siding Expenditure [as to which this is capital expenditure or revenue expenditure] and c) Dividend which according to assessee is exempt; that the matter turned heavily on Section 14-A of IT Act pertaining to disallowance; that the DRP had held in favour of assessee with regard to TP; that vide this 22.06.2021 assessment order based on the DRP directions, additions under Section 14-A of IT Act r/w. Rule 8D of Income Tax Rules, 1962 [hereinafter 'IT Rules' for the sake of brevity, convenience and clarity] was made in addition to the normal income as well as the book profit under Section 115JB of IT Act; that vide this assessment order it was made clear that penalty under Section 271(1)(c) of IT Act will be initiated for 'inaccurate particulars of income'; that post such assessment order a show cause notice [hereinafter 'SCN' for the sake of brevity] under Section 274 r/w. 271(1)(c) of IT Act being SCN dated 22.06.2021 came to be issued calling upon the writ petitioner assessee to respond on or before 01.07.2021; that the writ petitioner assessee responded on 30.06.2021 vide a detailed reply inter alia contending that this is not a case of inaccurate particulars of income; that what is of significance is in the concluding paragraphs the assessee had sought for a personal hearing; that the assessee thereafter preferred a statutory appeal before the jurisdictional Income Tax Appellate Tribunal [ITAT] i.e., ITAT, Chennai assailing the assessment order dated 22.06.2021 and this statutory appeal before ITAT was made some time in Aug
