The Division Bench of Bombay High Court comprising Justice Ujjal Bhuyan and Justice Milind N Jadhav, on deciding the plea filed by Deepak Kochhar challenging the assessment order passed by the assessing officer granted petitioner the liberty to file appeal before the First Appellate Authority and has further stayed the operation of the order in question as interim relief.
Brief facts:
The Assessment order in question relates to the assessment year 2012- 13. The assessing officer added Rs. 394 crore to the income of the assesse as benefit received owing to the receipt of share premium on getting control and management of M/S. NuPower Renewables private Limited during the relevant assessment year. The said income was added under the heads of ‘Income from other sources’ under section 56(1) of the Income Tax Act, 1961. The assessment officer passed an order dated 28/12/2019 under section 143(3) read with section 147 of Income Tax Act, 1961 pertaining to the same.
Challenging the said order, Deepak Kochhar had filed writ petition before the High Court of Bombay under Article 226 of Constitution of India. The counsel for the petitioner argued that the impugned order of the assessing officer was passed without giving petitioner an opportunity to hear and hence the order of the officer violates the principles of natural justice. He further stated that the order passed by the assessing officer is devoid of any merits. The Counsel for the petitioner also assured that the petitioner would file an appeal against the order in question.
However the respondent counsel raised his objection that the petitioner herein has not exhausted the alternative remedy and hence he must be redirected to the statutory forum. With regard to the allegations of violation of principles of natural justice, the respondent counsel stated that the petitioner failed to put forward his case despite giving him ample time.
Key features:
1. After hearing both sides and on due consideration, the court is of the view that the petitioner may file an appeal against the order of the assessing officer before the first appellate authority.
2. The court further granted petitioner 4 weeks’ time from the date of order to file the appeal before the said authority.
3. The court further observed that the petitioner has the option to move stay application before the appellate authority to stay the operation of the impugned order.
4. The court further granted stay on the operation of assessment order dated 28th December, 2019, till the stay application is decided by the first appellate authority.
The division bench of the Bombay High court disposed the writ petition of Deepak Kochhar allowing him to file an appeal before the first appellate authority against the order passed by the assessing officer within 4 weeks from the date of the order and further ordered that the assessment order dated 28/12/2019 shall be kept in abeyance till such date the appellate authority decides the stay application so as to enable the petitioner to avail the remedy available to him.
Edited by J. Madonna Jephi
Approved & Published – Sakshi Raje
Reference
1. Deepak Kochhar vs. Deputy Commissioner of Income Tax, Circle 3(2)(2) and others, High Court of Bombay, Judgment dated 30th January, 2020, https://images.assettype.com/barandbench/2020-01/093f2c48-4341-4bdc-ba43-6bf2feed2af8/Bombay_HC_grants_interim_relief_to_Deepak_Kochhar_against_Income_Tax_Assesment_Order_.pdf (last visited on 30th January, 2020).
2. Bar and Bench, Bombay HC keeps IT Assessment Order against Deepak Kochhar in abeyance to allow him to move First Appellate Authority, https://www.barandbench.com/news/litigation/bombay-hc-keeps-it-assessment-order-against-deepak-kochhar-in-abeyance-to-allow-him-to-move-first-appellate-authority-read-order (last visited on 30th January, 2020).
3. Bombay HC grants Kochhar liberty to appeal against IT order, http://www.asianage.com/metros/mumbai/300120/bombay-hc-grants-kochhar-liberty-to-appeal-against-it-order.html (Last visited on 30th January, 2020).
