Atal Construction Co. and ors. Vs. Union of India and ors. - Court Judgment

Excerpt:
counsels: r.a. katta, for the petitioner anant kasliwal, for the respondents head note: income tax business income--under section 44advalidity of circular no. 737 dt. 23-2-1996 catch note: as circular no. 737 dt. 23-2-1996 issued by cbdt is quashed notice issued to petitioner in pursuance of that circular is also quashed and assessing authority is directed to drop the proceeding and start fresh proceeding as per amendment introduced in the year 1997 in proviso to sub-section (2) of section 44ad of the income tax act. application: also to current assessment year. decision: in favour of assessee. income tax act 1961 s.44ad in the rajasthan high court g.s. misra, j. - orderby the courtthe petitioner has moved this court for quashing the notice dated 15-11-1996, which had been issued to the petitioner initiating a proceeding in pursuance of the circular no. 737, dated 23-2-1996, issued by the central board of direct taxes respondent no. 2 herein. it is not necessary to enter into the grounds for such challenge as the said circular already stands quashed by a co-ordinate bench at principal seat, jodhpur, which is reported in a.s. construction co. v. union of india & anr. (198) 5 dtc 523 (raj-hc) : (1998) 144 ctr (raj) 69 in s.b. civil writ petition no. 642 of 1997, i see no reason to take a different view from the order passed earlier.accordingly, the impugned notice as contained in annexure stands quashed and the assessing authority is directed to drop the proceeding and start fresh proceeding as per amendment introduced in the year 1997 in proviso to sub-section (2) of section 44ad of the income tax act.the writ petition accordingly stands disposed of.

Judgment:
ORDER

By the Court

The petitioner has moved this court for quashing the notice dated 15-11-1996, which had been issued to the petitioner initiating a proceeding in pursuance of the Circular No. 737, dated 23-2-1996, issued by the Central Board of Direct Taxes respondent No. 2 herein. It is not necessary to enter into the grounds for such challenge as the said circular already stands quashed by a co-ordinate Bench at Principal Seat, Jodhpur, which is reported in A.S. Construction Co. v. Union of India & Anr. (198) 5 DTC 523 (Raj-HC) : (1998) 144 CTR (Raj) 69 in S.B. Civil Writ Petition No. 642 of 1997, I see no reason to take a different view from the order passed earlier.

Accordingly, the impugned notice as contained in Annexure stands quashed and the Assessing Authority is directed to drop the proceeding and start fresh proceeding as per amendment introduced in the year 1997 in proviso to sub-section (2) of section 44AD of the Income Tax Act.

The writ petition accordingly stands disposed of.