The Calcutta High Court has held that the revisional authority, while considering a writ petition filed by Unisource Hydro Carbon Services Private Limited & Anr, held that the revisional authority, while exercising its power under section 264 of the Income Tax Act cannot act as an appellate authority and go into the merits of the assessment by re-appreciating the facts and evidence and all materials.
The petitioners have challenged the impugned order of the Commissioner dated 15th December, 2021 under its discretionary power under Section 264 of the Income Tax Act, 1961 and subsequent order under Section 154 of the Act dated 17th January, 2022 arising out of the assessment order passed under Section 143 (3) of the Act, dated 14th June, 2021, relating to assessment year 2018-19 wherein taxable amount of Rs. 22,03,56,600/- was determined and it is admitted position that till date petitioner has not paid a single penny in respect of the aforesaid demand.
Justice Md. Nizamuddin observed that “It is a well-settled principle of law that power of Appellate Authority is much wider than the Revisional Authority and the Commissioner in exercise of his discretionary power of revision under Section 264 of the Act cannot act as an Appellate Authority and go into the merits of the assessment by re-appreciating the facts and evidence and all materials. Further in view of Explanation I below Section 264 (7) of the Income Tax Act, 1961, clearly says that any order of the Commissioner under Section 264 of the Act declining to interfere will be deemed not to be an order prejudicial to the assessee.”
However, while considering that this is the second round of petition by the same party to avoid tax liability, the Court said that “Considering the facts and circumstances of the case I am of the view that petitioners after dismissal of the earlier petition by this Court against the same assessment order without filing any statutory Appeal before the Commissioner of Income Tax (Appeals) with sole intention of avoiding the payment of huge amount of tax determined in assessment order have deliberately chosen the forum of revision under Section 264 of the Act with a view to make out a case to come up before this Court again under Article 226 of the Constitution of India tactfully indirectly to get interference in assessment order which the Commissioner in exercising the power under Section 264 of the Act has refused and this Court has also refused in the first round of litigation in WPA No. 11041 of 2021.”
Advocates Mr. Abhrotosh Majumdar, and Senior Advocate Mr. Himangshu Kumar Ray appeared for the petitioners.
Unisource Hydro Carbon Services Private Limited & Anr. vs Union of India & Ors.
CITATION: 2022 TAXSCAN (HC) 140
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