2020 (3) TMI 788 - HC - Income Tax

Writ of certiorari for quashing the impugned draft assessment order u/s 144C (1) - HELD THAT - As stated that the Department is in process of doing the needful. Learned Senior counsel for the petitioner has countered by arguing that this order cannot be converted into an order under Section 143 (3) of the Act. He has further argued that this order cannot be rectified and it should also be open to them to challenge in case any rectification which is not borne out by law is made. Learned Senior Standing counsel for the respondent has accepted this offer. Resultanly, the present writ petition is disposed of with the clarification that the petitioner would be at liberty to challenge any subsequent order which may be passed and take all pleas before the appropriate authority.

Summary

Issues:
Challenge to draft assessment order under Section 144C (1) of the Income Tax Act for assessment year 2016-17.

Analysis:
The petitioner filed a writ petition under Articles 226/227 of the Constitution of India seeking a writ of certiorari to quash the impugned draft assessment order dated 28.12.2019 issued by respondent No.2 under Section 144C (1) of the Income Tax Act for the assessment year 2016-17. The Court noted the submissions made by both parties regarding the nature of the order, with the respondents claiming it to be an assessment under Section 143 (3) of the Income Tax Act 1961, while the petitioner argued against its conversion into an order under Section 143 (3). The Senior Standing counsel for the respondents accepted the petitioner's offer to challenge any subsequent order and present all pleas before the appropriate authority. Consequently, the writ petition was disposed of, granting the petitioner the liberty to challenge any future order and present their case before the appropriate authority. The pending application, if any, was also disposed of since the main case had been decided.

This judgment primarily dealt with the challenge to a draft assessment order under Section 144C (1) of the Income Tax Act for the assessment year 2016-17. The Court considered the nature of the order in question, with the respondents claiming it to be an assessment under Section 143 (3) of the Income Tax Act 1961, while the petitioner argued against its conversion into such an order. The Court allowed the petitioner the liberty to challenge any subsequent order and present all pleas before the appropriate authority, thereby providing a remedy in case of any rectification not supported by law. The judgment emphasized the importance of ensuring due process and the right to challenge any decisions that may affect the petitioner's interests adversely.