2002 (9) TMI 84 - HC - Income Tax

The petitioner has challenged the order dated March 27, 2002, by which the Assistant Commissioner of Income-tax, Circle 2, Patna, has amended the earlier assessment order in exercise of power under sections 154 and 155(4A) of the Income-tax Act, 1961, and investment allowance allowed to the petitioner has been withdrawn for non-utilisation of the same within the statutory time limit. - It is an admitted position that the assessment was made and that order of assessment was subject to appeal and the appellate court has finally decided the matter. Thereafter, the respondent-Assistant Commissioner of Income-tax in exercise of power under sections 154 and 155(4A) of the Income-tax Act issued notice to the petitioner to show cause as to why the aforesaid investment allowance be not withdrawn for its non-utilisation within the statutory time limit and granted only one day s time to the petitioner to state its version. - we are inclined to quash the impugned order

Summary

The High Court of Patna quashed an order by the Assistant Commissioner of Income-tax withdrawing investment allowance from the petitioner for non-utilization within the statutory time limit. The court found that the petitioner was not given sufficient time to respond to the notice, leading to the order being quashed. The petitioner was directed to appear before the authority with a show cause on or before October 24, 2002, for further proceedings. The writ application was allowed.