S. 179 r.w.s. 264 – Non speaking order – without any reasons – Orders set aside

S. 179 r.w.s. 264 – Non speaking order – without any reasons – Orders set aside

The Petitioner had challenged the order dated 3rd March, 2020 passed by the Pr. CIT  u/s 264 of the Act rejecting the Petitioner’s Application filed u/s 264. The Petitioner had filed an application u/s 264 of the Act before Pr.CIT challenging the order u/s 179 of the Act dated 28th September, 2018  passed by the  Assessing Officer, against the  Petitioner for recovery of tax demand of Rs. 2,77,01,520 arising out of the assessment of M/s. Laxmi Realty & Advisory Pvt Ltd. The Petitioner being one of the directors of the said M/s. Laxmi Realty & Advisory Pvt Ltd during the relevant A.Y. 2015-16, therefore the Assessing officer had initiated and passed order u/s 179 of the Act against the Petitioner for recovery of tax demand of the said company.

The Hon. Court observed that both the orders under Section 179(1) and Section 264 of the said Act are without giving any reasons. In the order passed u/s 179(1), the Income Tax Officer simply says that there was a reply received from Petitioner, but the same is not being accepted. In the order passed under Section 264 of the said Act, the Principal Commissioner of Income Tax has not even dealt with the submissions made by the Petitioner.

In the circumstances, the Hon. Court set aside both the orders, i.e., the order dated 27th February, 2020, passed under Section 264 of the said Act and the order dated 28th September, 2018, passed under Section 179(1).

The Hon. Court further directed that the Assessing Officer  consider afresh the response filed by Petitioner and pass an order under Section 179(1) of the said Act in accordance with law and before any order is passed, the Petitioner shall be given a personal hearing, and notice of personal hearing shall be communicated to Petitioner at least two weeks in advance. If the Assessing Officer wishes to rely on any judgments or order passed by any Court or Tribunal, he shall provide a copy thereof to the Petitioner and allow him an opportunity to deal with those judgments or distinguish those judgments and those submissions of the Petitioner shall also be dealt with in the order.