TMI Blog2022 (6) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... o go. It would have different, if the 1st respondent independently had decided to proceed with the proposal in the Show Cause Notice. Therefore, the impugned direction of the second respondent impugned in W.P is hereby quashed. However, there is no necessity to remit the cases back to the second respondent to re-do exercise under Section 144 A of the Income tax Act, 1961. - W.P.Nos.1554, 1561 & 1567 of 2019 And W.M.P.Nos.1729, 1734, 1736, 1741 and 28845 of 2019 - - - Dated:- 8-4-2022 - Hon'ble Mr.Justice C.Saravanan For the Petitioner : Mr. R.V.Easwar, Senior Counsel Asst.by Mr.M.V.Swaroop, H.S.Hredai and Rubal Bazal (in all W.Ps.) For the Respondents : Mrs.Hema Muralikrishnan Senior Standing Counsel (in all W.Ps.) COMMON ORDER In W.P.No.1561 of 2019, the petitioner has challenged the impugned direction of the second respondent dated 21.12.2018 under Section 144-A of the Income Tax Act, 1961. In W.P.No.1561 of 2019, the petitioner has challenged the consequential Assessment Order dated 27.12.2018 passed by the first respondent. In W.P.No.1567 of 2019 the petitioner has prayed for a writ of prohibition, prohibiting the respondents from taking any acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact that the 2nd respondent passed an order dated 21.12.2018 was not known to the petitioner. 7. Learned Senior Counsel further submits that explanation to Section 144 A also will not apply to the situation under consideration as the directions are not in line with the letter and as per of Section 144 A of the Income Tax Act, 1961. 8. Learned Senior Counsel further submits that the last date for completing the assessment was 31.12.2018 and therefore, the first respondent has mechanically followed the directions purportedly issued by the second respondent on 21.12.2018 and confirmed the demand by issuing a show cause notice dated 21.12.2018. It is further submitted the by reply dated 26.12.2018 the petitioner sought for further time. However, the first respondent proceeded to pass the impugned assessment order under Section 143 (3) of the IT Act, 1961 on 27.12.2018 in order to complete the assessment. 9. Learned Senior Counsel further submits that apart from the fact that the impugned order of the first respondent dated 27.12.2018, mechanically adopts the directions of the second respondent dated 21.12.2018, it is submitted that the impugned orders cannot be allowed to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s binding on the first respondent. 15. Learned counsel for the respondents further submits that petitioner has an alternative remedy by an appeal before the Assistant Commissioner and therefore, also the petitioner is liable to be dismissed. 16. By way of re-joinder learned Senior Counsel submitted that the directions of the second respondent would have been binding, provided to Section 144 A of the Income Tax Act, 1961, was followed in case and since the direction was prejudicial to the interest of the petitioner the directions of the second respondent could not be the basis of the assessment. 17. I have considered the arguments advanced by the learned counsel for the petitioner and learned Senior Counsel for the respondents and I have also perused the impugned orders and the decisions of the Hon'ble Supreme Court and that of the Hon'ble High Court of Allahabad cited above. 18. This Court is not sitting as an Appellate Court while exercising its Jurisdiction under Article 226 of the Constitution of India. Therefore, I am refraining from making any observation on the correctness of the computation of the income in the impugned Assessment order dated 27.12.2018. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessment Order. Accordingly, 2.5% of the transaction amounting to Rs.28,05,26,782/- paid to M/S.MRF SG PTELimited under Section 40A(2)(a) and Section 37 of the Income Tax Act . 22. Section 144-A of the Income Tax Act, 1961 reads as under: Power of Joint Commissioner to issue directions in certain cases. 144A. A Joint Commissioner may, on his own motion or on a reference being made to him by the Assessing Officer or on the application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the nature of the case or the amount involved or for any other reason, it is necessary or expedient so to do, he may issue such directions as he thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment and such directions shall be binding on the Assessing Officer : Provided that no directions which are prejudicial to the assessee shall be issued before an opportunity is given to the assessee to be heard. Explanation.-For the purposes of this section no direction as to the lines on which an investigation connected with the assessment shou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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