FinDoc Finvest Private Limited Vs DCIT (Punjab and Haryana High Court)
Summary: The Punjab & Haryana High Court considered a writ petition challenging an undated assessment order passed under Section 143(3) of the Income-tax Act, 1961, together with penalty notices under Sections 270A and 271AAC and consequential proceedings. The petitioner challenged the assessment on multiple grounds, principally alleging improper intervention by superior officers, limitation, and violation of natural justice. The petitioner relied upon the statutory scheme under Sections 143(3), 144A, 151 and 153D and contended that although the CBDT Circular dated 15.07.2022 permitted approval of assessments by the Joint Commissioner, the Assessing Officer was required to independently exercise the quasi-judicial discretion vested in him. The petitioner pointed out that the Assessing Officer had recorded consultations with the superior officer on 26.10.2023, 11.01.2024 and 14.03.2024, before completion of the assessment. The Revenue defended the circular and maintained that the assessment had actually been passed on 31.03.2024 and communicated electronically that evening.
The Court examined Section 119 and held that the CBDT was empowered to issue guidelines and procedures for efficient administration of assessments. It therefore did not find the Circular dated 15.07.2022 objectionable merely because it required approval of an assessment from the Joint Commissioner. However, the Court distinguished approval from active participation in the assessment process. Relying upon Anirudhsinhji Karansinhji Jadeja and the principles concerning exercise of statutory discretion without external dictation, the Court found that the Assessing Officer had consulted the superior officer repeatedly and that the Joint Commissioner had comprehensively participated in the making of the assessment. The Court held that the Assessing Officer’s independent application of mind and discretionary authority had consequently been compromised.
