2024 (12) TMI 1065 - HC - Income Tax

Rectification of mistake in impugned order u/s 147 r/w 144B - Department has solely relied on the information gathered from the DCIT (OSD)(Inv.) CBDT, New Delhi, however, particulars have not been furnished to the petitioner regarding the five transactions which is disputed by the petitioner - HELD THAT - It is admitted that the petitioner sought information from the Department, however, the same was not furnished, yet the impugned order was passed on 23.03.2022. It is submitted that the petitioner also made some attempts to get the details of the documents under the Right to Information Act, 2005, from the Sub-Registrar Office, Neelankarai, however, no information has come from the SRO as well. This Court is not convinced that the petitioner has made out a case for interference with the impugned Assessment Order dated 23.03.2022. Petitioner has also filed an appeal before the Appellate Commissioner and has also secured an interim stay u/s 220(6) up to September, 2022. Considering the fact that the petitioner has furnished the bank statements before the Local Authority, vide Annexure VI to the application dated 22.06.2022, this Court is inclined to dispose of these writ petitions with the following directions (i) The appeal, that has been filed before the Appellate Authority under Section 246A of the Income Tax Act, 1961, is directed to be disposed of, as expeditiously as possible, preferably within a period of six months from the date of receipt of a copy of this order. (ii) The stay, that was earlier granted on 28.06.2022, shall continue to operate till disposal of the appeal pending before the Appellate Commissioner against the impugned order dated 23.03.2022. (iii) Since the petitioner has also filed the bank statement with the Local Authority, the Commissioner (Appeals) or the Appellate Authority under the new regime, may call for the remand report from the Assessing Officer and proceed to pass final orders.

Summary

Issues:
Challenging an Assessment Order for the Assessment Year 2016-17 and seeking rectification of mistake in the same order.

Analysis:

The petitioner, engaged in Real Estate business, challenged the Assessment Order dated 23.03.2022, issued by the first respondent for the Assessment Year 2016-17. The petitioner filed a return of income on 14.10.2016, disclosing a total income of Rs. 91,12,576. Subsequently, the petitioner was asked to provide various documents related to transactions, including PAN, mobile numbers, sale deed, financial accounts, bank account statements, and details of the source of property purchase. The petitioner responded, stating limited transactions and commission paid to brokers. This led to a show-cause notice on 16.03.2022, followed by the impugned Assessment Order on 23.03.2022.

The petitioner had filed a statutory appeal under Section 246A of the Income Tax Act, 1961, before the Commissioner of Income Tax (Appeals). The Local Committee rejected a request for reconsideration. The petitioner also sought rectification under Section 154, but it was not considered. The petitioner argued that necessary information was not provided by the Department regarding disputed transactions, despite being made through bank accounts and rectifications by the buyer. The petitioner relied on Supreme Court decisions to support the claim that proving negatives without documents was unreasonable.

The Department contended that the petitioner was uncooperative, failing to provide requested documents, including a bank statement. The Department proceeded with the Assessment Order under Section 147 r/w 144B of the Income Tax Act, 1961, due to the petitioner's lack of cooperation. The Department argued that the pending appeal before the Appellate Commissioner rendered the writ petitions meritless.

The Court, after considering arguments from both sides and cited judgments, found no grounds to interfere with the Assessment Order. However, acknowledging the pending appeal and interim stay granted, the Court directed the expeditious disposal of the appeal within six months. The stay granted was to continue until the appeal's disposal, and the Appellate Authority was instructed to call for a remand report from the Assessing Officer based on the bank statement submitted to the Local Authority.

In conclusion, the Court disposed of the writ petitions without costs, providing directions for the expeditious resolution of the appeal and continuation of the stay granted.