TaxTMI 
TaxTMI 
2026 (2) TMI 104
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....in para No.1 of the petition. It maintains its current account with Indian Overseas Bank and has been availing GST and income tax consultancy services from one Mr. Rishabh Aggarwal, Chartered Accountant of M/s Rishabh Aggarwal and Associates (Membership No.520889) located at Gurgaon. Since the introduction of the GST regime, the partners of the petitioner lacked expertise in tax compliance. They accordingly relied upon their abovestated Chartered Accountant for GST filings and tax payments. The arrangement of the petitioner with the said Chartered Accountant was as under: i. The Petitioners would send all sales invoices for the month to the Chartered accountant/Mr. Rishabh Aggarwal. ii. The Chartered accountant/Mr. Rishabh Aggarwal would compute the Petitioner's monthly GST liability. iii. As the Petitioners did not avail much input tax credit, GST liability was fully payable in cash Ledger (through bank Challan). iv. As there were initially certain issues with the Petitioner's Internet banking facility, M/s Knight Fly Boyz, the Petitioner's transferred the GST amount directly to the bank account of the Chartered Accountant M/s Rishab....
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....vide order dated 05.05.2025 (Annexure P-12). The abovestated orders are in violation of principles of natural justice as no proper opportunity of hearing was given to it before issuing the same. The said action has resulted in violation of Section 75(4) of the Central Act. In fact, the petitioner is victim of a fraud committed by its Chartered Accountant and respondent No.1 has overlooked the said material aspect of the matter. The petitioner had never intended to commit any default in the payment of the taxes and was rather transferring the required amounts of tax to the said Chartered Accountant. Respondent No.1 failed to look into the actual facts of the matter as well as evidence submitted by the petitioner. It has passed a mechanical order without giving proper reasoning. It has imposed an excessive and arbitrary penalty. The orders Annexures P-2 to P-4 are arbitrary and perverse. 5. We have heard the learned counsel for the parties and with their able assistance, have perused the file. 6. Learned counsel for petitioner has argued that Chartered accountant of the petitioner has, in fact, deceived it and the said fact has not at all been considered by respondent No.1 whil....
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....unds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice. (5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. (6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder. (7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable. (8) Where any person chargeable with tax under sub-section (1) or subsection (3) pa....
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....rdinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order. (3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application. (4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month. (5) Every appeal under this section shall be in such form and shall be verified in such manner, as may be prescribed. (6) No appeal shall be filed under sub-section (1), unless the appellant has paid - (a....
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....termination, the decision thereon and the reasons for such decision. (13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed: Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year. (14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority. (15) A copy of the order passed by the Appellate Authority shall also be sent to the Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of central tax or an authority designated by him in this behalf. (16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties." 10. It is a matter of record that petitioner has filed this writ petition without invoking the remedy of appeal admittedly provided under the said Section. In fact, the sai....