2020 (2) TMI 1623 - HC - Income Tax

Rectification u/s 154 - petitioner contends that the respondent is not passing any orders on the said application for rectification but instead is attempting to collect the outstanding dues arising out of the said assessment order and that this action on the part of respondent is illegal arbitrary and violative of Articles 14 and 300-A of the Constitution of India - HELD THAT - Writ Petition is disposed of directing the respondent to dis pose of petitioner s application for rectification dt.26.12.2019 filed u/s 154 within a period of four (04) weeks from the date of receipt of copy of the order and till the said application is disposed of there shall be stay of collection of outstanding demand arising of the said Assessment order dt.23.12.2019 passed against the petitioner.

Summary

Issues:
1. Assessment under Section 143(3) of the Income Tax Act, 1963 for the Assessment Year 2017-18.
2. Application for rectification under Section 154 of the Act.
3. Allegations of illegal and arbitrary actions by the respondent.
4. Direction for disposal of the rectification application and stay on the collection of outstanding demand.

Analysis:

1. The judgment pertains to an order of assessment passed under Section 143(3) of the Income Tax Act, 1963 against the petitioner for the Assessment Year 2017-18 on 23.12.2019.

2. Subsequently, the petitioner filed an application for rectification under Section 154 of the Act on 26.12.2019, seeking corrections or adjustments to the assessment order.

3. The petitioner raised concerns that the respondent was not addressing the rectification application but was instead trying to collect the outstanding dues from the assessment order. The petitioner alleged that such actions were illegal, arbitrary, and in violation of Articles 14 and 300-A of the Constitution of India.

4. During the proceedings, the counsel for the respondent assured the court that the application for rectification would be dealt with within four weeks from the receipt of the court's order.

5. Consequently, the High Court disposed of the Writ Petition by directing the respondent to dispose of the petitioner's rectification application filed under Section 154 of the Act within four weeks from the receipt of the court's order. Additionally, the court ordered a stay on the collection of outstanding demand arising from the assessment order until the rectification application was resolved.

6. The judgment concluded by stating that the Writ Petition was disposed of with the aforementioned directions, and no costs were awarded. Any pending miscellaneous petitions related to the Writ Petition were also deemed closed as a result of this decision.