BIHAR POLICE BUILDING CONSTRUCTION CORPORATION PVT. LTD. Vs. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The writ petition is filed against an assessment order passed under Sec. 143(3) of the Income Tax Act (hereinafter referred to I.T. Act) dtd. 26/3/2021. The statutory remedy by way of an appeal was not availed of. The question raised is also one which can be considered in appeal; as to whether the income earned on the deposits made by the assessee, is liable to be computed in the total income of the assessee; when the interest earned is from the funds received as grants from the Government, for construction of buildings of the Police Department. It is also contended that Annexure-3 government circular has stipulated that the grants for the successive years would be reduced to the extent of the interest earned from the un-utilized funds of the earlier years kept in fixed deposits. Hence, though, earned as interest from the fixed deposits from the banks, it cannot be assessed as income from other sources under Sec. 56 of the I.T. Act, is the question raised. We have to notice that there would be gross delay from the date on which the order is passed; which would also be a hurdle insofar as availing the alternate remedy of an appeal.

(2.) We are not convinced that the matter falls under any of the specific grounds found in State of H.P and Ors. v. Gujarat Ambuja Cement Limited and Anr.; (2005) 6 SCC 499. There is no jurisdictional error, violation of principles of natural justice or abuse of process of Court averred or argued by the petitioner in the above writ petition. We are proceeding to adjudicate the issue since the matter is pending from 2022 and there is no purpose served in relegating the petitioner to the Appellate remedy.

(3.) Though, there are contentions raised of the assessment order having not been served on the assessee, it is to be noticed that the department asserts otherwise of the order having been uploaded in the website.