2020 (10) TMI 1393 - HC - Income Tax

Validity of assessment order u/s 143(3) r.w.s. 92(C)(A)(4) and Section 144-C - as submitted by Petitioner that in order to have an effectual adjudication in a comprehensive manner, the Petitioner may be permitted to withdraw the Writ Petition with liberty to file statutory Appeal before the concerned authority, so that all the contentions raised this Writ Petition could be canvassed in that forum. HELD THAT - Having regard to the aforesaid submissions made, this Writ Petition is dismissed as withdrawn granting such liberty. It is made clear for the purpose of reckoning limitation for availing the aforesaid remedy, the period from the date of filing of this Writ Petition, viz., 21.01.2014 till the date on which the certified copy of this order is made ready, shall be excluded.

Summary

Issues:
Challenge to order under Income Tax Act for assessment year 2009-10. Implementation of assessment order pending disposal of writ petition. Permission to withdraw writ petition and file statutory appeal.

Analysis:
The judgment pertains to a Writ Petition challenging an order under the Income Tax Act for the assessment year 2009-10. The Petitioner had obtained an interim stay on the impugned order, allowing the Respondents to quantify the tax liability without prejudice to both parties' rights. Subsequently, the First Respondent quantified the tax liability, and the Third Respondent passed the assessment order, which was challenged in a separate Writ Petition. The Court directed that the assessment order could only be implemented after the disposal of the initial writ petition, emphasizing the importance of adhering to principles of natural justice. The initial Writ Petition was disposed of accordingly, with no costs imposed.

Furthermore, the notice of demand attached to the assessment order provided details regarding the process for appealing against the assessment, fine, or penalty imposed. The Petitioner's counsel sought permission to withdraw the Writ Petition in order to file a statutory appeal before the appropriate authority, to ensure all contentions raised in the Writ Petition could be addressed comprehensively in that forum. The Court granted permission for the withdrawal of the Writ Petition, with the exclusion of the period from the filing date of the Writ Petition until the date of the certified copy of the withdrawal order. The connected Miscellaneous Petitions were also closed with no costs imposed.