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IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J.
M/s. Dishnet Wireless Limited, Represented by its Authorized Signatory K.P. Varadharajan - Appellant
Versus
Assistant Commissioner of Income Tax (OSD), Chennai - Respondent
W.P. Nos. 34668, 34671, 34649, 34654, 34657 & 34664 of 2018 & W.M.P. Nos. 40210, 40216, 40178, 40195, 40185, 40221, 40176, 40184, 40207, 40204, 40192, 40209 of 2018 & W.P. No. 34668 of 2018
Decided On : 17-06-2022
Income Tax Act - Reopening of Assessment - Section 147 & 148 - [Writ Petitions for Certiorarified Mandamus] - [Section 147 & 148 of the Income Tax Act, 1961] - The court dismissed the Writ Petitions seeking to quash the reopening of assessments under Section 147 & 148 of the Income Tax Act, 1961, as the Income Tax Department was not precluded from reopening the assessments completed under Section 143(3) of the Income Tax Act, 1961.
Fact of the Case:
The Writ Petitions were filed to challenge the reopening of assessments under Section 147 & 148 of the Income Tax Act, 1961, after the petitioners had voluntarily filed for Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.
Finding of the Court:
The court found that the Income Tax Department was not precluded from reopening the assessments completed under Section 143(3) of the Income Tax Act, 1961, and dismissed the Writ Petitions. The Assessment Orders were directed to be given to the respective petitioners, and they were granted liberty to file appeals before the Appellate Commissioner.
Issues: The main issue was whether the Income Tax Department was precluded from reopening the assessments under Section 147 & 148 of the Income Tax Act, 1961, due to the petitioners' voluntary filing for Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.
Ratio Decidendi: The court held that the Income Tax Department was not precluded from reopening the assessments completed under Section 143(3) of the Income Tax Act, 1961, and the provisions of the Insolvency and Bankruptcy Code, 2016 could not impinge on the rights of the Income Tax Department to pass any fresh Assessment Order under Section 148 read with Sections 143(3) and 147 of the Income Tax Act, 1961.
Final Decision: The Writ Petitions were dismissed, and the Assessment Orders were directed to be given to the respective petitioners. The petitioners were granted liberty to file appeals before the Appellate Commissioner within a specified period.
JUDGMENT
Common Order:
1. By this common order, all the six (6) Writ Petitions are being disposed. These Writ Petitions have been filed for the following reliefs:-
| Sl.No. | W.P.No. | Prayer |
| 1 | 34668/2018 | For issuance of a Writ of Certiorarified Mandamus, to call for the records comprised in the impugned Notice dated 28.03.2018 bearing PAN:AAACD5767E, as also letter dated 07.12.2018 bearing PAN: AAACD5767E, the notice dated 28.09.2018 bearing PAN: AAACD5767E and the order dated 24.12.2018 bearing PAN: AAACD5767E/ACIT (OSD) / 2018-19 issued in furtherance thereof by the respondent and all proceedings pursuant thereto, and quash the same as illegal, arbitrary and unconstitutional and consequently forbear the respondent from proceeding with re-assessment under Section 147 & 148 of the Income Tax Act, 1961 in respect of the Assessment Year 2012-13. |
| 2 | 34654/2018 | For issuance of a Writ of Certiorarified Mandamus, to call for the records comprised in the impugned Notice dated 27.03.2018 bearing PAN:AAACR5136R, as also letter dated 15.11.2018 bearing PAN:AAACR5136R / Company / CC I(1)/2018-19, the notice dated 27.09.2018 bearing PAN: AAACR5136R and the order dated 17.12.2018 bearing PAN:AAACR5136R/AY 2011-12 issued in furtherance thereof by the respondent and all proceedings pursuant thereto, and quash the same as illegal, arbitrary and unconstitutional and consequently forbear the respondent from proceeding with re-assessment under Section 147 & 148 of the Income Tax Act, 1961 in respect of the Assessment Year 2011-12. |
| 3 | 34664/2018 | For issuance of a Writ of Certiorarified Mandamus, to call for the records comprised in the impugned Notice dated 26.03.2018 bearing PAN:AAACR5136R, as also letter dated 15.11.2018 bearing PAN:AAACR5136R / Company / CC I(1)/2018-19, the notice dated 27.09.2018 bearing PAN: AAACR5136R and the order dated 17.12.2018 bearing PAN:AAACR5136R/AY 2013-14issued in furtherance thereof by the respondent and all proceedings pursuant thereto, and quash the same as illegal, arbitrary and unconstitutional and consequently forbear the respondent from proceeding with re-assessment under Section 147 & 148 of the Income Tax Act, 1961 in respect of the Assessment Year 2013-14. |
| 4 | 34649/2018 | For issuance of a Writ of Certiorarified Mandamus, to call for the records comprised in the impugned Notice dated 26.03.2018 bearing PAN:AAACS4449J, as also letter dated 15.11.2018 bearing PAN: AAACS4449J / Company / CC I(1)/2018-19, the notice dated 27.09.2018 bearing PAN: AAACS4449J and the order dated 17.12.2018 bearing PAN: AAACS4449J/AY 2013-14 issued in furtherance thereof by the respondent and all proceedings pursuant thereto, and quash the same as illegal, arbitrary and unconstitutional and consequently forbear the respondent from proceeding with re-assessment under Section 147 & 148 of the Income Tax Act, 1961 in respect of the Assessment Year 2013-14. |
| 5 | 34671/2018 | For issuance of a Writ of Certiorarified Mandamus, to call for the records comprised in the impugned Notice dated 28.03.2018 bearing PAN:AAACD5767E, as also letter dated 07.12.2018 bearing PAN:AAACD5767E, the notice dated 28.09.2018 bearing PAN:AAACD5767E and the order dated 24.12.2018 bearing PAN: AAACD5767E / ACIT (OSD) / 2018-19 issued in furtherance thereof by the respondent and all proceedings pursuant thereto, and quash the same as illegal, arbitrary and unconstitutional and consequently forbear the respondent from proceeding with reassessment under Section 147 & 148 of the Income Tax Act, 1961 in respect of the Assessment Year 2011-12. |
| 6 | 34657/2018 | For issuance of a Writ of Certiorarified Mandamus, to call for the records comprised |
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Alternate remedy would not operate as a bar for invoking jurisdiction under Article 226 of the Constitution of India in at least three contingencies, namely, where writ petition has been filed for en....
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