Case Law Details
NLC Tamil Nadu Power Limited Vs Centralized Processing Centre (Madras High Court)
The Madras High Court considered a writ petition challenging a rectification order dated 01.06.2023 passed under Section 154(3) of the Income Tax Act, 1961. The rectification related to an intimation purportedly issued under Section 143(1) on 29.12.2021. The petitioner submitted that the dispute arose due to a defective Form No. 3CD filed under Section 44AB on 29.12.2020, and acknowledged that a revised Form No. 3CD was filed later on 02.03.2024, after the rectification order had been passed.
From the counter affidavit, it emerged that neither the original intimation under Section 143(1) nor the rectification intimation under Section 154(3) had been properly communicated to the petitioner due to technical reasons. Taking note of these facts and the subsequent filing of the revised audit report, the Madras High Court remitted the matter back to the first respondent to consider the revised Form 3CD and issue a fresh intimation under Section 143(1) in accordance with law. The Court further directed that the period during which the proceedings were pending would be excluded for computing limitation under Section 153. The writ petition was disposed of without costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
In this Writ Petition, the Petitioner has challenged the impugned Rectification Order dated 01.06.2023 passed by the 1st Respondent under Section 154(3) of the Income Tax Act, 1961.
2. By the impugned Order dated 01.06.2023, the intimation that was purportedly sent to the Petitioner on 29.12.2021 under Section 143(1) of the Income Tax Act, 1961 has been rectified.
3. Learned counsel for the Petitioner submits that the dispute has arisen on account of the defective Form No.3CD that was originally filed under Section 44AB on 29.12.2020. The learned counsel for the Petitioner fairly concedes that post facto the Petitioner had filed revised Form No.3CD on 02.03.2024 after the impugned Rectification Order dated 01.06.2023 came to be issued.
4. A reading of the counter affidavit filed on behalf of the Respondents indicates that the Rectification Order was passed without proper intimation to the Petitioner. In fact, the intimation under Section 143(1) of the Income Tax Act, 1961 itself was also not communicated to the Petitioner.
5. Relevant portion of the Counter Affidavit of the Respondents is reproduced below:-
“With regard to averment in para 16, I state that the intimation under Section 143(1) and intimation under Section 154(3) has not been triggered due to technical reasons as mentioned in the above paragraph. A detailed intimations alleged by the petitioner it is submitted that the intimation under Section 143(1) and intimation under Section 154(3) has not been triggered due to technical reasons which may kindly be condoned.”
6. Considering the overall facts and circumstances of the case and in view of the fact that the Petitioner has filed the revised Form 3CD on 02.03.2024, this case is remitted back to the 1st Respondent to consider the same and issue a fresh intimation under Section 143(1) of the Income Tax Act, 1961 in accordance with law.
7. Needless to state, the time during which the proceedings were pending and till the date of the communication of this order shall stand excluded for the purpose of computation of limitation under Section 153 of the Income Tax Act, 1961.
8. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
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