Delhi High Court - Orders
A.C. Surgipharma Private Limited vs Deputy Commissioner Of Income Tax ... on 14 December, 2022
Author: Rajiv Shakdher
Bench: Rajiv Shakdher
$~53
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 17057/2022 & CM Nos.54060-61/2022
A.C. SURGIPHARMA PRIVATE LIMITED ..... Petitioner
Through: Mr Vibhor Garg and Mr Keshav
Tiwari, Advs.
versus
DEPUTY COMMISSIONER OF INCOME
TAX CIRCLE 1(1) & ANR. ..... Respondents
Through: Mr Zoheb Hossain, Sr. Standing
Counsel with Mr Vipul Agrawal and
Mr Parth Semwal, Jr. Standing
Counsels.
CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
HON'BLE MS. JUSTICE TARA VITASTA GANJU
ORDER
% 14.12.2022 [Physical Hearing/Hybrid Hearing (as per request)] CM No.54061/2022
1. Allowed, subject to the petitioner filing legible copies of annexures, at least three days before the next date of hearing. W.P.(C) 17057/2022 & CM No.54060/2022 [Application filed on behalf of the petitioner seeking interim relief]
2. A challenge in this writ petition is laid to the impugned intimation dated 13.11.2022 issued by respondent no.2 under Section 143(1) of the Income Tax Act, 1961 [in short "Act"].
W.P.(C) 17057/2022 page 1 of 3 Signature Not Verified Digitally Signed By:TARUN RANA Signing Date:23.12.2022 16:08:56 2.1 Via this intimation, a demand amounting to Rs.1,03,94,820/- has been raised against the petitioner.
3. The principal grievance of the petitioner is, that although in the income tax return, enough and more information had been given, that the petitioner has opted for being taxed at the rate of 22% as provided under Section 115BAA of the Act, the impugned order was passed, only on account of the fact that the petitioner had failed to file Form 10-IC.
4. It is the submission of Mr Vibhor Garg, who appears on behalf of the petitioner, that before passing the impugned intimation dated 13.11.2022, an opportunity could have been granted to the petitioner, to correct course. 4.1 To be noted, in the instant writ petition, we are concerned with Assessment Year (AY) 2021-2022.
5. Mr Garg informs us, that for AY 2022-2023, once again, in accordance with the provisions of sub-section (5) of Section 115BAA of the Act, the petitioner continued to opt for being taxed at the rate of 22%, and has accordingly indicated the option in the prescribed form i.e., Form 10-IC.
6. Mr Zoheb Hosaain, who appears on behalf of the respondent/revenue, on the other hand, says that the provisions of Section 115BAA and Rule 21AE clearly mandate that Form 10-IC should be filed, along with the return.
6.1 Mr Hossain also says, that there is an alternate remedy available under Section 246A of the Act.
7. Perhaps, the issue that requires consideration, is that if every information that is sought for in the form is available with the return, and there is indication in the return, that the assessee has exercised his option in W.P.(C) 17057/2022 page 2 of 3 Signature Not Verified Digitally Signed By:TARUN RANA Signing Date:23.12.2022 16:08:56 terms of sub-section (1) of Section 115BAA, then, before proceeding further, should the Assessing Officer (AO) not give an opportunity to the assessee [in this case the petitioner] to make course correction?
8. We may note, that when the provision i.e., Section 115BAA was inserted, the Central Board of Direct Taxes (CBDT) via circular dated 17.03.2022 had relaxed the rigour of the law, in exercise of its powers under Section 119(2)(b) of the Act.
9. To our minds, the matter requires to be delved into.
10. Accordingly, issue notice.
10.1 Mr Zoheb Hossain accepts notice on behalf of the respondents/revenue.
11. Counter-affidavit will be filed within the next four weeks. 11.1 Rejoinder thereto, if any, be filed before the next date of hearing.
12. List the matter on 19.05.2023.
13. In the meanwhile, no precipitate action will be taken against the petitioner in respect of the demand raised via the impugned intimation dated 13.11.2022, till further orders of the Court.
RAJIV SHAKDHER, J
TARA VITASTA GANJU, J
DECEMBER 14, 2022/aj
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W.P.(C) 17057/2022 page 3 of 3
Signature Not Verified
Digitally Signed By:TARUN
RANA
Signing Date:23.12.2022
16:08:56
Signature Not Verified
Digitally Signed By:TARUN
RANA
Signing Date:23.12.2022
16:08:56