Introduction: In the case of “Tribeni Barters Private Limited And Vs ITO (Calcutta High Court)”, a significant issue has come to the forefront concerning the validity of an assessment order. The contention is that the PAN number cited in both the show cause notice and the assessment order does not correspond to that of the petitioner. This raises questions about procedural accuracy and the legitimacy of the assessment conducted.
Analysis: The heart of the dispute revolves around:
1. Incorrect PAN: The show cause notice, as well as the impugned assessment order both, referenced a PAN number that was not associated with the petitioner, Tribeni Barters Pvt. Ltd.
2. Amalgamation Discrepancy: While proceedings were initially initiated against Kapish Sales Pvt. Ltd., it’s alleged that this company merged into Tribeni Barters. However, there’s contention regarding whether Kapish Sales, with the cited PAN number, ever underwent an actual merger with the petitioner company.
3. Demands for Relevant Records: The court seeks clarity and has ordered Ms. Das De, representing the respondent, to produce records, particularly notices under Section 148A(b) and orders under Section 148A(d) of the Act, as well as all related correspondence during the proceedings.
Conclusion: The case emphasizes the importance of accuracy and diligence in administrative processes, particularly in matters related to taxation. Quoting the wrong PAN number can lead to significant legal and procedural challenges, as evidenced by the concerns raised in this case. The Calcutta High Court’s decision to review the relevant records underscores its commitment to ensuring that the processes are carried out with the utmost precision and adherence to the rule of law. The case’s resolution will provide important insights into the importance of meticulous record-keeping and due process in tax-related matters.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The Court: Heard learned advocates appearing for the parties.
By this writ petition, petitioner has challenged the impugned assessment order dated 31st May, 2023, under Section 147 read with Section 144B of the Income Tax Act, 1961, relating to assessment year 2013-14 on several grounds including the ground that the PAN number referred in the show cause notice dated 2nd May, 2023 and in the impugned assessment order is not petitioner’s PAN number and further that petitioner could not get any opportunity and scope to respond to any notice under Section 148A(b) of the Act if at all it was issued. The question arises in this case relates to issue of show cause notice issued in the name of the petitioner, Tribeni Barters Pvt. Ltd. and impugned order under Section 147 of the Act passed against the petitioner again quoting the same PAN number which is not of the petitioner.
Ms. Das De, learned advocate appearing for the respondent submits that initially proceeding was initiated in the name of one Kapish Sales Pvt. Ltd. which has been merged into the petitioner company by amalgamation and it has already been approved by NCLT. Mr. Majumder, learned senior advocate further takes the point that even if the petitioner according to the department has merged into the shoe of the aforesaid Kapish PAN number of which has been referred in the impugned notice and assessment order, the said Kapish having the said PAN number has never merged into the petitioner company.
Ms. Das De appearing for the respondent shall produce the relevant record particularly notice under Section 148A(b) of the Act and order under Section 148A(d) of the Act and all correspondences during the impugned proceeding.
List this matter on 10th August, 2023 to enable Ms. Das De to produce the relevant records.