Kundan Rice Mills v. Principal Commissioner of Income-tax - 2020-LL-0811

Citation	2020-LL-0811
Appellant Name	Kundan Rice Mills
Respondent Name	Principal Commissioner of Income-tax
Court	HIGH COURT OF PUNJAB & HARYANA
Relevant Act	Income-tax
Date of Order	11/08/2020
Judgment	View Judgment
Keyword Tags	opportunity of being heard • transfer of case
Bot Summary:	One of the grounds in the present petition challenging the order dated 23rd September, 2019 passed by the Principal Commissioner of Income Tax, Karnal under Section 127 of the Income Tax Act, 1961( IT Act ), transferring the case involving the Petitioner to the Assessing Officer, Central Circle-14, New Delhi is that it is not a reasoned order. The operative portion of the impugned order reads as under: In response to above, the assessee filed a reply dated 27.08.2019 and requested to grant an opportunity of being heard before the final decision on this regard. In response to the same, the assessee filed the reply on 16.09.2019 and 23.09.2019. Mr. Sandeep Goyal, learned Counsel for the Respondent, is not able to dispute that the above order is not a reasoned one and thus is contrary 1 of 2 ::: Downloaded on - 12-08-2020 11:46:32 ::: CWP-28808-2019 2 to a whole line of decisions of the Supreme Court including the one in Ajanta Industries v. Central Board of Direct Taxes 102 ITR 281. On the short ground that the impugned order dated 23rd September, 2019 is unreasoned, the same is set aside and the matter concerning the order under Section 127 of the I.T. Act is remitted to the Principal Commissioner, Income Tax, Karnal to be continued from the stage of the reply of the Assessee having been filed on 16th and 23rd September, 2019. The Principal Commissioner, Income Tax, Karnal will now pass a fresh reasoned order dealing with all the submissions of the assessee not later than 30th October, 2020 and communicate the same to the Petitioner not later than 6th November, 2020. If such order is adverse to the Petitioner, it will be open to it to seek appropriate remedies in accordance with law.

CWP-28808-2019 1 207 IN HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-28808-2019 (O&M) Date of Decision :11th August, 2020 M/s Kundan Rice Mills Petitioner Versus Principal Commissioner of Income Tax Respondent CORAM: JUSTICE S. MURALIDHAR JUSTICE AVNEESH JHINGAN *** Present : Ms. Radhika Suri, Senior Advocate with Mr. M.S. Kanda, Advocate for Petitioner. Mr. Sandeep Goyal, Advocate for Respondent. *** Dr. S. Muralidhar, J. 1. One of grounds in present petition challenging order dated 23rd September, 2019 passed by Principal Commissioner of Income Tax, Karnal under Section 127 of Income Tax Act, 1961( IT Act ), transferring case involving Petitioner to Assessing Officer, Central Circle-14, New Delhi is that it is not reasoned order. 2. operative portion of impugned order reads as under: In response to above, assessee filed reply dated 27.08.2019 and requested to grant opportunity of being heard before final decision on this regard. Accordingly, final opportunity of being heard was granted to assessee vide this office letter/notice dated 09.09.2019 fixing case of 16.09.2019. In response to same, assessee filed reply on 16.09.2019 and 23.09.2019. replies of assessee were considered carefully and after consideration, same were not found tenable. 3. Mr. Sandeep Goyal, learned Counsel for Respondent, is not able to dispute that above order is not reasoned one and thus is contrary 1 of 2 ::: Downloaded on - 12-08-2020 11:46:32 ::: CWP-28808-2019 2 to whole line of decisions of Supreme Court including one in Ajanta Industries v. Central Board of Direct Taxes (1976) 102 ITR 281 (SC). 4. Consequently, on short ground that impugned order dated 23rd September, 2019 is unreasoned, same is set aside and matter concerning order under Section 127 of I.T. Act is remitted to Principal Commissioner, Income Tax, Karnal to be continued from stage of reply of Assessee having been filed on 16th and 23rd September, 2019. 5. Principal Commissioner, Income Tax, Karnal will now pass fresh reasoned order dealing with all submissions of assessee not later than 30th October, 2020 and communicate same to Petitioner not later than 6th November, 2020. 6. If such order is adverse to Petitioner, it will be open to it to seek appropriate remedies in accordance with law. 7. writ petition is disposed of in above terms. pending applications, if any, are disposed of. [S. MURALIDHAR] JUDGE [AVNEESH JHINGAN] JUDGE 11thAugust, 2020 Pankaj baweja Whether speaking / reasoned : Yes / No Whether reportable : Yes / No 2 of 2 ::: Downloaded on - 12-08-2020 11:46:32 ::: Kundan Rice Mills v. Principal Commissioner of Income-tax

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