Partly allowed

Degustibus Hospitality Private Limited v. the National Faceless Assessment Centre and 4 Ors.

Bombay HC8 Dec 2021WP/1869/2021

Case brief

AI extract

What is this about?

The Bombay High Court in a writ petition directed the quashing of assessment orders passed under Section 144B of the Income Tax Act, 1961, which were issued without a prior show cause notice. The matter was remanded to the Assessing Officer to adhere strictly to statutory procedures. Concurrently, the court noted the appointment of an interim resolution professional.

What did the court decide?

The petition was directed to be made absolute to quash the assessment order passed under Section 143(3) read with Section 144B, the notice of demand, and the show cause notice. The matter was remanded

Degustibus Hospitality Private Limited Vs the National Faceless… — Income Tax | Bombay HC (2021)

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Digitally signed by PURTI PURTI PRASAD PRASAD PARAB PARAB Date: 2021.12.10 15:02:12 +0530

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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WRIT PETITION NO. 1869 OF 2021

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Degustibus Hospitality Private Limited….Petitioner

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 V/s.

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The National Faceless Assessment
Centre and Ors.…Respondents

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----

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Mr. Dharan V. Gandhi for Petitioner.
Mr. Sham V. Walve a/w Mr. Pritish Chatterjee for Respondents-Revenue.

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 ----

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 CORAM : K.R. SHRIRAM &
AMIT B. BORKAR, JJ.
 DATED : 8th DECEMBER 2021

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P.C. :

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1.Mr. Gandhi states that there is interim resolution professional
appointed by NCLT, Mumbai under the Insolvency And Bankruptcy Code,
2016 some time in October after this petition was lodged. Mr. Gandhi states
that he was informed about this only last night by the instructing chartered
accountant. Mr. Gandhi states that he does not have any instructions from
IRP to continue to appear in this petition.

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2.At the same time, Mr. Walve states that the grievance raised by
petitioner in this petition that the assessment order has been passed without
issuing show cause notice without issuance of draft assessment order
appears to be correct. Mr. Walve states that the court may therefore set
aside the Assessment Order and remand for denovo consideration so that

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Purti Parab

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respondent may strictly follow the procedure prescribed in Section 144B of
the Income Tax Act, 1961 (the Act). Accordingly, petition is made absolute
in terms of prayer clause (a) which reads as under :

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(a) that this Hon’ble Court may be pleased to issue a Writ of Certiorari or a Writ in the nature of Certiorati or Writ of Mandamus or a Writ in the nature of Mandamus or any other appropriate Writ, Order or direction, calling for the records of the Petitioner’s case and after going into the legality and propriety thereof, to quash and set aside the assessment order passed under section 143(3) read with section 144B of the Act dated 14.06.2021 (Exhibit U1) and the notice of demand in Form No.7 dated 14.06.2021 (Exhibit U2) as well as the show-cause notice under section 274 read with section 270A of the Act dated 14.06.2021 (Exhibit U3).

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3.The matter is remanded to the Assessing Officer for denovo
consideration and with a direction that the procedure prescribed under
Section 144B of the Act is strictly followed. The procedure to be completed
and the Assessment Order to be passed within eight weeks from today
subject to there being no restrictions under the provisions of the
Insolvency And Bankruptcy Code, 2016.

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4. Petition disposed.

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(AMIT B. BORKAR, J.) ( K.R. SHRIRAM, J.)

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Purti Parab

Degustibus Hospitality Private Limited v. the National Faceless Assessment Centre and 4 Ors.

Case brief

What is this about?

What did the court decide?

Degustibus Hospitality Private Limited v. the National Faceless Assessment Centre and 4 Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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