Case Law Details
Hiraman Ramchandra Rithe Vs Union of India (Bombay High Court)
The petitioner challenged the penalty order dated 20.02.2026 passed under Section 271-D and the related demand notice issued under Section 156. The petitioner relied on a Bombay High Court decision in Writ Petition (L) No. 42864 of 2025, contending that the issue was already covered. The Income Tax Department opposed the petition, arguing that an alternate efficacious remedy was available, while the Union of India supported the impugned order. The Court noted that the issue was squarely covered by its earlier decision, which had followed the judgments in B. Shreeram Durgaprasad, Kellogg India Private Limited, and Maharashtra State Electricity Transmission Company Limited. Holding that the matter was covered by precedent, the Court allowed the petition and quashed the penalty order.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Rule. Rule made returnable forthwith. Heard finally by the consent of the parties.
2. By this petition, the Petitioner is challenging the order dated 20.02.2026 under Section 271-D and notice of demand under Section 156 dated 20.02.2026. The learned advocate for the Petitioner has placed reliance on the decision rendered by the Coordinate Bench of this Court at Principal Seat in Writ Petition (L) No. 42864 of 2025 dated 03.02.2026, which according to him squarely covers the issue raised in this petition.
3. Learned advocate for the Respondents / Income Tax Department has strenuously opposed the petition stating that the Petitioner has alternate efficacious remedy and therefore the petition may not be entertained on that ground. The learned advocate for the Union of India has supported the impugned order.
4. This Court while allowing Writ Petition (L) No. 42864 of 2025 has followed the decisions in B. Shreeram Durgaprasad Vs. Commissioner of Income Tax, Nagpur [2016] 65 taxmann.com 293 (Bombay)] and Kellogg India Private Limited Vs. National Faceless Assessment Centre, Delhi & Ors. and Maharashtra State Electricity Transmission Company Limited V/s. Assessment Unit, Income Tax Department, National Faceless Assessment Centre & Ors. We find that the issue raised in the present petition is squarely covered by the same decision. Hence, the petition deserves to be allowed.
5. In the result, Writ Petition succeeds. The impugned penalty order dated 20.02.2026 (Exhibit-C) is hereby quashed and set aside.
6. Rule is made absolute in the above terms
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