2021 (10) TMI 1112 - HC - Income Tax

Initiating the proceedings u/s 153C - grievance made on the part of the petitioner that the respondent has not disposed of the objections raised by the petitioner against the reopening - HELD THAT - Noticing the requirement of the law, where the respondents have chosen not to dispose of objections raised to the satisfaction notes, without expressing any opinion on the correctness of initiation of the proceedings, the request is being granted to the assessee of availing opportunity of hearing. The objections raised by the assessee shall be considered by the respondent authority concerned which shall decide the same within the period of four weeks of the date of receipt of copy of this order. The order of disposing of the objection, if goes against the petitioner, the petitioner shall be availed the time of four weeks to avail the legal recourse in accordance with law. Present petition stands disposed of. Notice is discharged. Ad-interim relief, granted earlier stands vacated.

Summary

Issues:
Challenge to notices under Section 153C for Assessment Years 2012-13 to 2017-18, Objections raised against initiation under Section 153C, Failure to dispose of objections by respondent, Stay of proceedings, Alternative remedy emphasized in reply.

Analysis:
The petitioner sought to quash and set aside impugned notices dated 30th September, 2019 issued under Section 153C for Assessment Years 2012-13 to 2017-18. Additionally, requested a stay on the implementation and operation of the notices pending the petition's disposal. The petitioner raised objections against the initiation under Section 153C and highlighted the respondent's failure to address these objections, leading to the present petition seeking relief.

The Court, in response to the petitioner's concerns, stayed further proceedings pursuant to the impugned notices for the mentioned assessment years. The respondent filed a detailed reply emphasizing the availability of an alternative remedy, which was a key issue highlighted in their response. During the hearing, both parties were represented by learned Senior Counsels.

Recognizing the legal requirement for the respondent to address objections raised by the petitioner, the Court granted the assessee an opportunity for a hearing. The respondent authority was directed to consider the objections within four weeks of receiving the court's order. If the decision goes against the petitioner, they were granted an additional four weeks to pursue legal recourse as per the law.

Consequently, the present petition was disposed of, and the notice was discharged. The ad-interim relief previously granted was vacated as the Court addressed the concerns raised by the petitioner regarding the initiation under Section 153C and the respondent's failure to dispose of objections in a timely manner.