Patna High Court
M/S Khushbu DeviversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The court granted liberty to challenge the impugned order under Section 112 of the Bihar GST Act and disposed of the writ petition.
Summary
M/s Khushbu Devi filed a writ petition challenging the dismissal of its tax appeal by the Additional Commissioner of State Tax (Appeal), which was based on an inflated gross income shown in Form 26AS for FY 2017-18. The petitioner also sought to quash an adjudication order of the Joint Commissioner that imposed tax, interest, and penalty under Section 73(9) of the Bihar GST Act, alleging that the turnover was arbitrarily assumed. Additional reliefs included directions for the Income Tax authorities to produce and correct the erroneous Form 26AS, for the Municipal Commissioner to disclose actual payments made to the petitioner, and to restrain coercive recovery actions during the pendency of the petition. The court granted liberty to challenge the impugned order under Section 112 of the Bihar GST Act. The writ petition was subsequently disposed of by the court.
Issues considered
- What is the validity of the tax assessment and penalty imposed on the petitioner based on the inflated figure in Form 26AS?
- Whether the adjudication order under Section 73(9) of the Bihar GST Act can be quashed on the ground of arbitrary assumption of turnover?
- Whether the petitioner is entitled to directions for correction of Form 26AS and production of municipal payment details?
- Whether coercive recovery steps by the State Tax authorities can be restrained during the pendency of the writ petition?
Legislation cited
- Bihar Goods and Services Tax Act, 2017 — s. 112, 73(9)
Subjects
- GST
- tax assessment
- Form 26AS
- adjudication order
- penalty
- Section 112
- Section 73(9)
- state tax
- income tax
- coercive recovery
- writ petition
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16139 of 2025
======================================================
M/S Khushbu Devi through its Proprietor, Khushbu Devi, aged about 46 years
(Female), W/o Ravindra Kumar Sharma, R/o Dahiyawan Tola, Chapra, P.S.-
Chapra Muffasil, District-Saran, Bihar-841301.
... ... Petitioner/s
Versus
1. The State of Bihar through the Secretary, Department of Commercial Taxes,
Bihar, Patna.
2. The Additional Commissioner of State Tax (Appeal), Saran Division,
Chapra.
3. The Joint Commissioner of State Tax, Saran Circle-2, Chapra.
4. The Municipal Commissioner, Municipal Corporation, Chapra.
5. The Chief Commissioner of Income Tax, Bihar, Patna.
6. The Income Tax Officer, ITO Ward-2(2), Chapra.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Pratiyush Kumar, Adv.
Mr. Mukund Raj, Adv.
For the Respondent/s : Mr. Government Pleader (07)
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 13-05-2026 The present writ petition has been filed seeking the
following reliefs:-
(i)“For issuance of an appropriate
writ/order/direction to set aside the order dated
02.06.2025 passed by the Learned Additional
Commissioner of State Tax (Appeal), Saran
Division, Chapra in Appeal Case No. 148/2023-24,
whereby the Appeal preferred by the Petitioner was
dismissed. affirming the order dated 29.12.2023
passed by the Joint Commissioner of State Tax,
Saran Circle-2, Chapra, solely on the basis of a
gross amount of Rs. 1,04,02,000/- allegedly
Patna High Court CWJC No.16139 of 2025(2) dt.13-05-2026
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reflected in Form 26AS of the Income Tax
Department for the Financial Year 2017-18,
although the actual gross income of the Petitioner
for the said financial year was only Rs.
37,22,335/-.
(ii) For quashing the adjudication order dated
29.12.2023 passed by the Respondent No. 3 (Joint
Commissioner. Saran Circle-2. Chapra), whereby
suppression of turnover of Rs. 87,33,215/- was
arbitrarily assumed on the basis of Form 26AS,
and consequential tax, interest, and penalty were
imposed under Section 73(9) of the BGST Act,
2017.
(iii) For a direction upon the Respondent Income
Tax Authorities to produce the relevant Form 26AS
wherein an inflated figure of Rs. 1,04,02,000/- has
been shown, and to make necessary correction in
the said Form if the same has been erroneously
reflected against the PAN of the Petitioner.
(iv) For a direction upon the Respondent
Municipal Commissioner, Municipal Corporation,
Chapra produce the details of actual payments
made to the Petitioner for the Financial Year 2017-
18.
(v) For a direction restraining the Respondent
State Tax Authorities from taking any coercive
steps for recovery of the disputed tax, interest and
penalty amount during the pendency of the present
writ petition.”
2. At the outset, the learned counsel for the petitioner
seeks liberty on behalf of the petitioner to challenge the
impugned order dated 02.06.2025, passed by the learned
Additional Commissioner (Appeal) of State Tax, Saran
Division, Chapra by availing the remedy provided for under
Patna High Court CWJC No.16139 of 2025(2) dt.13-05-2026
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Section 112 of the Bihar Goods and Services Tax Act, 2017.
Liberty so sought is granted.
3. The writ petition stands disposed of.
(Mohit Kumar Shah, J)
( Arun Kumar Jha, J)
kanchan/-
U
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