2022 (11) TMI 1023 - HC - Income Tax

Reopening of assessment u/s 147 - petitioners are non-filers and there been also been no compliance to the various notices and questionnaires issued by the respondents - case of the Appellant is that the reply was given to the aforesaid notices wherein it was stated that the appellant had inadvertently applied for PAN as a Firm instead of 'Association of Person' - Appellant submitted that the Appellant had taken steps to surrender the PAN obtained as a Firm - HELD THAT - We do not find any reasons to differ from the findings of the learned Single Judge. We however give liberty to the appellant to file statutory appeals. As the time limit for filing of the Statutory Appeals would have already expired, we direct the appellant to file statutory Appeal before the Appellate Commissioner u/s 246 A within a period of four weeks from the date of receipt of a copy of this order, along with required documents to putforth its submissions. If such appeals are filed within such time, the Appellate Commissioner shall pass necessary orders on merits and in accordance with law. All the issues are left open for being canvassed before the Appellate Commissioner.

Summary

Issues:
Challenging the dismissal of Writ Petitions by the learned Single Judge regarding notices issued under Section 148 of the Income Tax Act, 1961 and the Assessment Orders passed thereon.

Analysis:
The Writ Appeals were filed to challenge the order of the learned Single Judge dated 05.09.2022, which dismissed the Writ Petitions filed by the Appellant concerning notices issued under Section 148 of the Income Tax Act, 1961 and the subsequent Assessment Orders. The Appellant, a Co-operative Society registered under the Tamil Nadu Co-operative Societies Act, 1983, had filed the Writ Petitions and contended that they inadvertently applied for PAN as a "Firm" instead of an "Association of Person." They claimed entitlement to benefits under Section 80P(2)(a)(vii) of the Income Tax Act, 1961. The Appellant stated that they were in the process of surrendering the PAN and filing a fresh return, but the Assessment Orders were passed without considering their reply.

The Appellant argued that they had taken steps to rectify the procedural irregularity and were entitled to the benefits under the Income Tax Act. The Respondents, represented by the standing counsel, contended that Show Cause Notices were issued to the Appellant, but they failed to respond, and also did not file returns in time under Section 139 of the Income Tax Act, 1961. The Respondents supported the dismissal of the Writ Petitions by the learned Single Judge.

After considering the arguments from both sides, the Court found no reason to differ from the findings of the Single Judge. However, the Court granted the Appellant the liberty to file statutory appeals before the Appellate Commissioner under Section 246 A of the Income Tax Act, 1961 within four weeks from the date of the order. The Court directed the Appellant to submit the required documents to support their case. All issues were left open for further consideration before the Appellate Commissioner. The Writ Appeal was disposed of with no costs, and connected Miscellaneous Petitions were closed.