Madras HC quashes all observations and findings on effectiveness of the E-Governance implemented by Income Tax Department

E-Governance - income tax department - madras high court - Taxscan

The Madras High Court quashed all observations and findings regarding effectiveness of the E-Governance implemented by the Income Tax Department.

The respondent, Salem Sree Ramavilas Chit Company Private Limited herein filed the said writ petition challenging the assessment order under the provisions of the Income Tax Act, 1961 for the assessment year 2017-18. The said writ petition was heard and orders were reserved on the date of admission itself and the impugned order has been pronounced. The ultimate direction issued in paragraph 18 of the impugned order, at the first blush, appears to be an innocuous direction.

Mr.A.P.Srinivas, the Senior Standing Counsel appearing for the appellant would contend that the observations and findings rendered by the learned Single Judge have far reaching consequences and that they have got cascading effect on other matters, which are pending before various forums. It is further contended that the learned Single Judge made certain observations commenting upon the efficacy and efficiency of the E-Proceeding facility introduced by the Income Tax Department. It is submitted that no opportunity was granted to the appellant to file a counter affidavit, as the said writ petition was heard and orders were reserved on the day when it came up for admission. Furthermore, the learned Single Judge also touched upon the merits of assessment and made certain observations, which is not done in a writ proceeding, especially when disputed questions of fact are involved. Therefore, it is his further submission that the impugned order passed in the said writ petition and the observations contained therein are liable to be interfered with.

Mr.M.P.Senthilkumar, counsel appearing for the respondent herein submits that several records were placed before the learned Single Judge, many of which are not being enclosed in the typed set of papers by the Revenue, that the respondent herein was rightly able to convince the learned Single Judge that there has been violation of the principles of natural justice and that therefore, the learned Single Judge rightly remanded the matter to the Authority concerned to afford a fresh opportunity.

The division bench of Justice T.S.Sivangananam and Justice Sathi Kumar Sukumara Kurup ruled that All observations and findings regarding the effectiveness of the E- Governance implemented by the ITD are set aside. Likewise, the observations and findings rendered in the impugned order touching upon the merits of the assessment are also set aside.

“The respondent herein assessee is granted liberty to file an appeal before the First Appellate Authority as against the assessment order dated 27.12.2019 and if such appeal is filed within four weeks from the date of receipt of a copy of this judgment, then the First Appellate Authority shall, while computing the limitation, exclude the period from 23.1.2020 till the date of filing of the appeal, which we have peremptorily fixed as four weeks from the date of receipt of a copy of this judgment. It is made clear that if the respondent herein fails to avail this opportunity within the period stipulated, then the benefit of this order will not enure to the respondent herein,” the Court said.

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