Karnataka High Court
Regional Institute Of English vs National Faceless Assessment Centre on 16 November, 2023
Author: B M Shyam Prasad
Bench: B M Shyam Prasad
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WP No. 22792 of 2023
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WP NO.23198/2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 16TH DAY OF NOVEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE B M SHYAM PRASAD
WRIT PETITION NO. 22792 OF 2023 (T-IT)
C/W
WRIT PETITION NO. 23198 OF 2023 (T-IT)
IN WP NO. 22792/2023
BETWEEN:
REGIONAL INSTITUTE OF
ENGLISH SOUTH INDIA
SOCIETY REGISTERED UNDER THE
MYSROE SOCIETY REGULATIONS ACT 1960,
REPRESENTED BY ITS DIRECTOR,
SMT GEETHA S,
DAUGHTER OF SRI SRIKANTAIAH,
AGED ABOUT 59 YEARS,
JNANA BHARATHI CAMPUS,
Digitally BANGALORE UNIVERSITY,
signed by BANGALORE 560056.
NARASIMHA
MURTHY
VANAMALA
...PETITIONER
Location:
HIGH COURT (BY SRI. A. SHANKAR, SENIOR ADVOCATE FOR
OF
KARNATAKA SRI. MADHUSUDHAN U A., ADVOCATE)
AND:
1. NATIONAL FACELESS ASSESSMENT CENTRE
REP BY ADDL/JOINT/DEPUTY/ASSISTANT
COMMISSONER OF INCOME TAX/
INCOME TAX OFFICER,
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INCOME TAX DEPARTMENT
MINISTRY OF FINANACE,
ROOM NO 401, 2ND FLOOR, E RAMP,
JAWARLAL NEHRU STADIUM,
DELHI 110003.
2. THE DEPUTY COMMISSIONER OF
INCOME TAX CENTRAL CIRCLE 2(1)(1)
BMTC BUILDING, 80 FEET ROAD,
6TH BLOCK, NEAR KHB GAMES VILLAGE,
KORAMANGALA,
BENGALURU 560001.
3. THE INCOME TAX OFFICER
WARD 5(1)(1)
T T M C BUILDING, BMTC 6TH STAGE,
NO 27 SV TOWERS, 80 FEET ROAD,
6TH BLOCK, KORAMANGALA,
BANGALORE 560095.
...RESPONDENTS
(BY SRI.Y.V.RAVIRAJ., ADVOCATE A/W
SRI.M. DILIP, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO
A) QUASHING THE ASSESSMENT ORDER DATED
31/03/2022 PASSED UNDER SECTION 147 R.W.S. 144
OF THE ACT FOR THE A.Y. 2016-17 BY THE R2
BEARING DIN AND ORDER NO. ITBA/AST/S/147/2021-
22/1042246669(1) HEREIN MARKED AS ANNEXURE-A1;
B) QUASHING THE COMPUTATION SHEET DATED
31/03/2022 ISSUED BY THE R2 FOR THE A.Y. 2016-17
BEARING DIN AND DOCUMENT NO.
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WP No. 22792 of 2023
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WP NO.23198/2023
ITBA/AST/S/116/2021-22/1042246354(1) HEREIN
MARKED AS ANNEXURE-A2 AND ETC.
IN WP NO. 23198/2023
BETWEEN:
REGIONAL INSTITUTE OF
ENGLISH SOUTH INDIA
SOCIETY REGISTERED UNDER THE
MYSROE SOCIETY REGULATIONS ACT 1960,
REPRESENTED BY ITS DIRECTOR,
SMT GEETHA S,
DAUGHTER OF SRI SRIKANTAIAH,
AGED ABOUT 59 YEARS,
JNANA BHARATHI CAMPUS,
BANGALORE UNIVERSITY,
BANGALORE 560056.
...PETITIONER
(BY SRI.A. SHANKAR, SENIOR ADVOCATE FOR
SRI. MADHUSUDHAN U A., ADVOCATE)
AND:
1. NATIONAL FACELESS ASSESSMENT
CENTRE REP BY ADDL/JOINT/DEPUTY/
ASSISTANT COMMISSONER OF INCOME TAX/
INCOME TAX OFFICER,
INCOME TAX DEPARTMENT
MINISTRY OF FINANACE,
ROOM NO 401, 2ND FLOOR, E RAMP,
JAWARLAL NEHRU STADIUM,
DELHI 110003.
2. THE DEPUTY COMMISSIONER OF INCOME TAX
CENTRAL CIRCLE 2(1)(1)
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BMTC BUILDING, 80 FEET ROAD,
6TH BLOCK, NEAR KHB GAMES VILLAGE,
KORAMANGALA, BENGALURU 560001.
3. THE INCOME TAX OFFICER WARD 5(1)(1)
T T M C BUILDING, BMTC 6TH STAGE,
NO 27 SV TOWERS, 80 FEET ROAD,
6TH BLOCK KORAMANGALA,
BANGALORE 560095.
...RESPONDENTS
(BY SRI.Y.V. RAVIRAJ., ADVOCATE A/W
SRI.M. DILIP, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO
A) QUASHING THE ASSESSMENT ORDER DATED
31/03/2022 PASSED UNDER SECTION 147 R.W.S. 144
OF THE ACT FOR THE A.Y. 2015-16 BY THE R2 NO. 2
BEARING DIN AND ORDER NO. ITBA/AST/S/147/2021-
22/1042246146(1) HEREIN MARKED AS ANNEXURE-A1;
B) QUASHING THE COMPUTATION SHEET DATED
31/03/2022 ISSUED BY THE R2 FOR THE A.Y. 2015-16
BEARING DIN AND DOCUMENT NO.
ITBA/AST/S/116/2021-22/1042246354(1) HEREIN
MARKED AS ANNEXURE-A2.
THESE PETITIONS, COMING ON FOR
PRELIMINARY HEARING, THIS DAY, THE COURT MADE
THE FOLLOWING:
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ORDER
The common petitioner in these petitions has challenged the corresponding assessment orders for the assessment years 2016-17 and 2015-16 and the corresponding computation sheets, the demand notices and the penalty orders under the Income Tax Act, 1961 [for short, 'IT Act']. The details of the impugned orders are as follows:
Sl In W.P. No.22792/2023 In W.P. No.23198/2023 No.
1. The second respondent's The second respondent's Assessment order dated Assessment order dated 31.03.2022 for the 31.03.2022 for the assessment year 2016-17 assessment year 2015-16 [Annexure-A1] [Annexure-A1]
2. The Computation Sheet The Computation Sheet dated 31.03.2022 issued dated 31.03.2022 issued by the second respondent by the second respondent [Annexure-A2] [Annexure-A2]
3. The Demand Notice dated The Demand Notice dated 31.03.2022 issued under 31.03.2022 issued under Section 156 of the IT Act Section 156 of the IT Act [Annexure-A3] [Annexure-A3]
4. Order under Section Order under Section 271[1][c] of the IT Act 271[1][c] of the IT Act -6- NC: 2023:KHC:40804 WP No. 22792 of 2023 C/W WP NO.23198/2023 dated 21.09.2022 of the dated 21.09.2022 of the second respondent second respondent [Annexure-A4] [Annexure-A4]
5. The second respondent's The second respondent's Order under Section 271A Order under Section 271A of the IT Act dated of the IT Act dated 26.09.2022 [Annexure-A5] 26.09.2022 [Annexure-A5] 6 The second respondent's The second respondent's Order under Section Order under Section 271[1][b] of the IT Act 271[1][b] of the IT Act dated 15.09.2022 dated 15.09.2022 [Annexure-A6] [Annexure-A6] 7 The second respondent's The second respondent's Order under Section 271F Order under Section 271F of the IT Act dated of the IT Act dated 13.09.2022 [Annexure-A7] 13.09.2022 [Annexure-A7]
2. Sri A Shankar, the learned senior counsel for the petitioner, submits that the petitioner is a 'Society' registered under the Mysore Society Regulations Act, 1960 and the petitioner is incorporated by the concerned State Government and the Ministry of Education, Government of India; that the petitioner's income is exempted from tax under the provisions of Section 10[23C][iiiab] of the IT Act; -7-
NC: 2023:KHC:40804 WP No. 22792 of 2023 C/W WP NO.23198/2023 that the petitioner was initially issued with PAN:
AADCD5955H as a company, but when this error is noticed, this PAN: AADCD5955H is surrendered and this is duly acknowledged.
3. Sri A Shankar further submits that the petitioner is later issued with new PAN: AACAD2223K as an 'Association of Persons' and that the petitioner, with issuance of the new PAN, has filed ITR for the assessment years commencing from 2016-17, and in fact, the ITR for the assessment year 2018-19 is selected for scrutiny assessment and in recognition of the fact that the petitioner's income, which is essentially contributions by the State Governments, is exempted from tax and the income for that year is assessed as 'Nil'. In this regard, Sri A Shankar draws this Court's attention to the assessment order dated 28.07.2021 [Annexure-V in W.P. No.22792/2023] for the assessment year 2018-19.
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4. Sri A Shankar canvasses that the petitioner could not have accessed the portal to know about the notices issued or the impugned assessment orders or the subsequent proceedings because the petitioner, without the respective Company Identity Number [CIN], could not have accessed the details and with the petitioner filing ITR with the new PAN as also the fact that the petitioner's income is indisputably exempted from charge, the proceedings must fail.
5. Sri M Dilip, as against these submissions, submits that his tentative instructions are PAN in No.AADCD5955H is active and certain assessment proceedings, are pending with the Income Tax Officer Ward-2[2][1], Bengaluru, and if it is established that the PAN is indeed active, the premise in which the impugned order is called in question would not be available to the petitioner.
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6. This Court must at this stage observe that the assertion as regards surrender of the PAN Card No. AADCD5955H is demonstrated by Annexure-H which is acknowledged and there is also the issuance of new PAN Card in No. PAN: AACAD2223K. Further, it is also demonstrated that the petitioner has filed ITR for the assessment years from 2016-17 claiming exemption and the petitioner's ITR for the assessment year 2018-19 is selected for scrutiny assessment and closed by the order dated 28.07.2021 computing the petitioner's income as 'Nil' because of the exemption, and in this regard, this Court must mention the terms of the final show cause notice as referred to in the assessment order dated 28.07.2021.
7. These circumstances presented, and which are supported by corresponding documents, are overwhelming circumstances, and in that event, the impugned assessment orders and every consequential order thereto will have to fail but with
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NC: 2023:KHC:40804 WP No. 22792 of 2023 C/W WP NO.23198/2023 liberty to the Income Tax Officer Ward-2[2][1], Bengaluru to issue fresh notice if indeed it is ascertained after verification that the PAN:
AADCD5955H is active and the assessment proceedings are pending, but such notice must be addressed to the petitioner in a manner that would be effective.
8. This Court must observe that, in the light of the petitioner's specific contention that it does not have a Company Identification Number issued by the concerned and without such identity number, the portal cannot be accessed to verify whether there is any notice indeed is issued. In the peculiarities of this case, in addition to the notice that may have to be uploaded on the portal, the Income Tax Officer Ward-2[2][1], Bengaluru must be directed to issue notice in regular made addressed to the petitioner in the event it becomes necessary. Hence the following:
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NC: 2023:KHC:40804 WP No. 22792 of 2023 C/W WP NO.23198/2023 ORDER [a] The petitions are allowed, and the impugned assessment orders both dated 31.03.2022 passed by the second respondent for the assessment year 2016-17 and 2015-16 and the consequential orders and all proceedings referred to at the first instance are quashed with liberty to the Income Tax Officer Ward-2[2][1], Bengaluru to issue notice as aforementioned.
[b] It is needless to observe that if such notice is indeed issued, the petitioner is permitted to urge all grounds as would be permissible in law.
SD/-
JUDGE AN/-