|The Tax Publishers2021 TaxPub(DT) 0270 (Mad-HC) : (2021) 430 ITR 0001
INCOME TAX ACT, 1961
Where there was an abuse of process of court in proceedings by assessee and taking advantage of pending litigation, assessee had tried to ride roughshod over Departmental authorities, which it was not entitled to do and an assessment of tax liability is an obligation of AO and equally obliged was assessee to abide by it subject to his right to avail of remedy, however, assessee seems to be resting upon the pendency of the litigation which was wholly misconceived, therefore, appeal of assessee was dismissed without interfering with the order of Single Judge.
Transfer of case - Centralisation of search and seizure cases - Pending litigation -
Assessee had challenged the transfer order and consolidation of cases of assessee on account of centralisation of search and seizure cases. The said order was passed by Commissioner and proceedings of assessee were transferred from Dy. CIT to another parallel authority, Dy. CIT. Single Judge did not find any ground to interfere with the said consolidation and transfer of cases from one AO to another. During the pendency of proceedings, an interim order was passed since assessment was about to get time-barred, giving liberty to conclude the assessment proceedings, with a Caveat, that it would not be given effect till further orders. Held: Merely because the transfer order under section 127 was under challenge in court or in the writ appeal proceedings, the authorities are not expected to act in accordance with the provisions and pass orders which is subject to limitation prescribed. There was an abuse of process of the court in the proceedings by assessee and taking advantage of the pending litigation, assessee had tried to ride roughshod over the Departmental authorities which it was not entitled to do. An assessment of the tax liability is an obligation of AO and equally obliged was the assessee to abide by it subject to his right to avail of remedy by way of appeals as provided in the law. Instead of choosing either availing of those remedies or paying the tax as assessed by AO, assessee seems to be resting upon the pendency of the litigation in this court which was wholly misconceived in the first instance. Therefore, appeal of assessee was dismissed without interfering with the order of Single Judge.
REFERRED : Advantage Strategic Consulting (P) Ltd. v. Pr. CIT (2018) 400 ITR 405 (Mad-HC) : 2017 TaxPub(DT) 5122 (Mad-HC)
FAVOUR : Against the assessee.
A.Y. : 2014-15
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