Punjab and Haryana High Court allows petition by Navjot Sidhu, sets aside income tax order

Tribune News Service

Chandigarh, December 3

Allowing a petition filed by Punjab Congress chief Navjot Singh Sidhu, the Punjab and Haryana High Court on Friday set aside an order passed by the principal commissioner, Income Tax.

The case has been sent back to the principal commissioner, Income Tax, to decide the matter afresh on merit.

Sidhu was represented by counsel Chetan Bansal.

Sidhu claimed that his revision petition under the provisions of the IT Act was dismissed by an income tax joint commissioner on flimsy and untenable grounds.

Sidhu had claimed that the order dated March 27 was patiently illegal, arbitrary and passed in complete disregard of the principles of natural justice. The matter was heard at length by the Bench of Justice Ajay Tewari and Justice Pankaj Jain.

Going into the background, Sidhu submitted that he filed an income tax return of the assessment year 2016-17 on October 19, 2016, declaring a total income of Rs 9,66,28,470. The assessment under Section 143(3) of the Income Tax Act was completed by the Assessment Officer on December 21, 2018, at the assessed income of Rs 13,19,66,530 after making addition of Rs 3,53,38,067.

Against the erroneous assessment, the petitioner expressly waived his right to file appeal before Commissioner Income Tax (Appeal). He filed a revision petition under Section 264 of the Act after taking various grounds before Income Tax joint commissioner, Range 1, Amritsar. Instead of going into the merits of the revision, his entire focus was to seek an explanation on the reasons and circumstances behind Sidhu’s preference for revision under Section 264 of the Act instead of appeal before the Commissioner Income Tax (Appeal).

The petitioner specifically stated that it was an alternative available to him and reliance was laid on pronouncements by the Punjab and Haryana High Court; but the respondent in complete disregard to the statutory provisions and legal pronouncements, and in a complete arbitrary manner, dismissed the revision petition vide order dated March 27.

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