Vasan Healthcare Private Ltd. v. The Principal Commissioner of Income-tax, Central-2, Chennai
[Citation -2020-LL-0102-40]

Citation 2020-LL-0102-40
Appellant Name Vasan Healthcare Private Ltd.
Respondent Name The Principal Commissioner of Income-tax, Central-2, Chennai
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 02/01/2020
Assessment Year 2009-10
Judgment View Judgment
Keyword Tags investigation wing • assessment order • notice issued
Bot Summary: Respondent Prayer: Writ petition is filed under Article 226 of the Constitution of India to issue Writ of Certiorari calling for the records in No.2527/Audit/C-2/15-16/Try dated 07.03.2016 on the file of the respondent relating to Assessment Year 2009-10, quashing the same. 10842 of 2016 ORDER The petitioner has challenged the impugned notice issued under Section 263 of the Income Tax Act, 1961 seeking to re-open the assessment order dated 31.03.2015. The contention of the petitioner is that the respondent had no basis to come to the conclusion that the orders have been passed erroneously or to dis-prejudice of the revenue. The learned counsel for the petitioner submits that there is no jurisdiction to invoke Section 263 of the Income Tax Act. Per contra, the learned counsel for the respondent submits that this writ petition is liable to be dismissed, since the petitioner has an alternate remedy to participate in the adjudicatory mechanism in the impugned proceeding under Section 263 of the Income Tax Act. Heard the learned counsel for the Petitioner and the learned counsel for the Respondent. At the same time, it is for the petitioner to establish before the respondent as to whether the invocation of Section 263 was justified or not.


W.P.No.10842 of 2016 IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.01.2020 CORAM HONOURABLE MR. JUSTICE C.SARAVANAN Writ Petition No.10842 of 2016 M/s.Vasan Healthcare Private Ltd., Rep. by its Chairman & Managing Director, Dr.A.M.Arun, Son of A.R.Murugaiah, 15-A, Main Road, Thillai Nagar, Trichy 620018. Petitioner Vs. Principal Commissioner of Income-Tax, Central-2, No.46, Investigation Wing, Mahatma Gandhi Road, Nungambakkam, Chennai 600034. Respondent Prayer: Writ petition is filed under Article 226 of Constitution of India to issue Writ of Certiorari calling for records in No.2527/Audit (LAR)/C-2/15-16/Try dated 07.03.2016 on file of respondent relating to Assessment Year 2009-10, quashing same. For Petitioner : Mr.M.P.Senthilkumar For Respondent : Mr.A.N.R.Jayaprathap Standing counsel for Tax 1/5 http://www.judis.nic.in W.P.No.10842 of 2016 ORDER petitioner has challenged impugned notice issued under Section 263 of Income Tax Act, 1961 seeking to re-open assessment order dated 31.03.2015. 2. contention of petitioner is that respondent had no basis to come to conclusion that orders have been passed erroneously or to dis-prejudice of revenue. It is submitted that all issues raised in order dated 31.03.2015 were pursuant to notice issued under Section 148 of Income Tax Act on 24.03.2014. 3. learned counsel for petitioner submits that there is no jurisdiction to invoke Section 263 of Income Tax Act. He further relies on following decisions: (i) 293 ITR 001 (S.C) Commissioner of Income Tax Vs- Alagendran Finance Ltd. (ii) 243 ITR 083 (S.C.) Malabar Industrial Co. Ltd. - Vs Commissioner of Income Tax. 2/5 http://www.judis.nic.in W.P.No.10842 of 2016 (iii) 119 ITR 996 (SC) Indian and Eastern Newspaper Society Vs- Commissioner of Income Tax. 4. Per contra, learned counsel for respondent submits that this writ petition is liable to be dismissed, since petitioner has alternate remedy to participate in adjudicatory mechanism in impugned proceeding under Section 263 of Income Tax Act. Therefore, Writ Petition is liable to be dismissed. 5. Heard learned counsel for Petitioner and learned counsel for Respondent. 6. I have perused impugned order. assessment order passed on 31.03.2015 for assessment year 2014-15 has not clearly discussed issue. Instead, it has accepted returns filed by petitioner based on decision of this Court without actually discussing how revised returns filed by petitioner under Section 143 (3) of Income Tax Act was acceptable. At same time, it is for petitioner to establish before respondent as to whether invocation of Section 263 was justified or not. Hence, I am of view, 3/5 http://www.judis.nic.in W.P.No.10842 of 2016 that petitioner can be directed to participate in adjudicatory mechanism prescribed under Act. 7. Therefore, petitioner is directed to file its reply to impugned notice within 30 days from date of receipt of this order. respondent shall pass appropriate order within period of 30 days thereafter. It is made clear that petitioner shall be heard before order is passed on merits, in accordance with law. 8. In view of same, Writ Petition is dismissed. No costs. 02.01.2020 Index:Yes/No Internet : Yes/No Speaking order/non-speaking order drl To Principal Commissioner of Income-Tax, Central-2, No.46, Investigation Wing, Mahatma Gandhi Road, Nungambakkam, Chennai 600 034. 4/5 http://www.judis.nic.in W.P.No.10842 of 2016 C.SARAVANAN, J. drl W.P.No.10842 of 2016 DATED : 02.01.2020 5/5 http://www.judis.nic.in Vasan Healthcare Private Ltd. v. Principal Commissioner of Income-tax, Central-2, Chennai
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