MS Lokesh Construction P. Ltd Vs The Assistant Commissioner of Income Tax

This Delhi High Court case, MS Lokesh Construction P. Ltd. vs The Assistant Commissioner of Income Tax, concerns a challenge to an assessment order dated 07.04.2021. The petitioner argued that the order was invalid as it was issued without a prior show cause notice-cum-draft assessment order. The court issued notice and, with the consent of both parties, took up the writ petition for final disposal.

IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 27.05.2021
W.P.(C) 5491/2021

MS LOKESH CONSTRUCTIONS P LTD .....Petitioner
Through: Mr. Gagan Kumar with Mr. Ashish
Parashar, Advocates.

versus

THE ASSISTANT COMMISSIONER OF INCOME TAX
..... Respondent

Through: Ms. Vibhooti Malhotra, Sr. Standing

Counsel.

CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
HON'BLE MR. JUSTICE TALWANT SINGH
[Court hearing convened via video-conferencing on account of COVID-19]

RAJIV SHAKDHER, J.: (ORAL)

CM APPL. 17023/2021
1. Allowed, subject to just exceptions.

CM APPL. 17024/2021
2. The prayer made in the captioned application is to grant exemption from filing requisite court-fee and sworn/notarised/affirmed affidavit. The captioned application is disposed of with a direction to the petitioner to place on record the duly sworn/notarised/affirmed affidavit and to deposit the requisite court-fee, within three days of the resumption of the normal and usual work pattern by this court.

W.P.(C) 5491/2021 and CM APPL. 17022/2021 [Application filed on behalf of petitioner, under Section 151 of the Civil Procedure Code, 1908, seeking stay on the operation of order passed by respondent, dated 07.04.2021.]

3. Via this writ petition, challenge has been laid to the assessment order dated 07.04.2021, passed under Section 143(3) read with Section 143(3A) & 143(3B) of the Income Tax Act, 1961 (in short, ‘the Act’), as also the consequential notice of demand issued under Section 156 of the Act, and notice for initiation of penalty proceedings issued under Section 274 read with Section 270A of the Act.

4. To be noted, the impugned assessment order concerns Assessment Year (AY) 2018-2019.

5. The principal grievance of the petitioner is that, the impugned assessment order was passed without issuance of a show cause notice-cum draft-assessment order.

6. Issue notice.

7. Ms. Vibhooti Malhotra, accepts notice on behalf of the respondent/revenue.

7.1 Ms. Malhotra says that, in view of the directions that we propose to pass, she does not wish to file a reply and will argue the matter based on the record, presently, available with the Court.

7.2. Accordingly, with the consent of the counsel for the parties, the writ petition is taken up for hearing and final disposal.

8. At the outset, Ms. Malhotra, fairly, draws our attention to the 
judgement passed by this Court, today, in W.P. (C) 5552/2021 [listed on our board today as Item No. 28], the ratio of which, according to her, will apply,to this matter, as well.

To know more in details find the attachment file