Disregard of section 143 and  section   154  of  the  Income  Tax  Act is arbitrary and illegal: Patna High Court.

This case was a writ Petition filled by Lalit  Narayan  Mishra  College  of  Business Management against the  Principal  Chief Commissioner,  Income  Tax,  Central Revenue  Building, Virchand  Patel  Path, Patna and Ors. The Judgment in Lalit Narayan Mishra College of Business Management, Vs. The Principal Chief Commissioner (Citation: CWJC  No.333  of 2022) was served by HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR. 


This case a writ Petition filled under Article 226 of The Constitution of India,  1950. Through this petition the petitioner sought the Court to quash  and  set  aside  the order  dated 16th of June 2020  as  well as  demand  notice  dated 16th of June 2020 passed Assistant  Commissioner  of Income Tax and   created   demand   of Rs.1,53,63,423/-  without  issuing  notice. The Respondents wants the Court to hold that  the  order  passed by  respondent  is wholly  illegal  and  arbitrary as  the provision  of  section 143  (2)  and  (3) and/or  under  subsection  (3) of   section  154  of  the  Income  Tax  Act has not been followed. Further it was also prayed by the petitioner  the  order  passed by assessing officer   for   rectification   is unreasonable and hence declare  that  the  demand created  by  the  respondent  unreasonable because the   assesses   is   a   trust which   running college  and  the  activities carried  out  by  trust is  wholly    charitable as  such  the  whole    of the receipt/income    is  exempted  from  levy of  tax within the meaning of  income tax act.


The Hon’ble Court after going through the arguments made by the parties uphold the rights of the Petitioner and disposed off the petition in favour of the petitioner.


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