Karnataka High Court
M/S Shivalaya Trust vs National Faceless Assessment Centre on 17 November, 2022
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 17TH DAY OF NOVEMBER, 2022
BEFORE
THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION No.19725 OF 2022 (T-IT)
BETWEEN:
M/S SHIVALAYA TRUST
REPRESENTED BY ITS TRUSTEE / SECRETARY
SMT K.R.USHA,
W/O LATE SRI. H.S. NAGABHUSHANA
NO.2970, K.R.ROAD, BSK 2ND STAGE
BENGALURU-560 070
(UNDER REGISTRATION INDIAN
PARTNERSHIP ACT 1932)
... PETITIONER
(BY SRI S.ANNAMALAI, ADVOCATE)
AND:
1. NATIONAL FACELESS ASSESSMENT CENTRE
REP. BY ADDL/ JOINT / DEPUTY/ ASSISTANT
COMMISSIONER OFINCOME TAX /
INCOME TAX OFFICER
INCOME TAX DEPARTMENT
MINISTRY OF FINANCE
ROOM NO.401, 2ND FLOOR, E-RAMP
JAWARLAL NEHRU STADIUM
DELHI-110 003
2. THE INCOME TAX OFFICER (EXEMPTIONS)
WARD -3, UNITY BUILDING
P.KALINGARAO ROAD
BENGALURU-560 027
... RESPONDENTS
(BY SRI M.DILIP, ADVOCATE)
2
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227
OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE
ASSESSMENT ORDER DATED 21.09.2022 PASSED UNDER
SECTION 143(3) R.W.S 144B OF THE ACT FOR THE ASSESSMENT
YEAR 2020-21 BY THE R1 BEARING DIN NO.ITBA/AST/S/143(3)/
2022-23/1045782240(1) HEREIN MARKED AS ANNEXURE-A1 AND
ETC.
THIS PETITION COMING ON FOR 'ORDERS' THIS DAY, THE
COURT MADE THE FOLLOWING:
ORDER
In this petition, the petitioner has sought for the following reliefs:
a) Stay the operation of the assessment order dated 21.09.2022 passed under Section 143(3) r.w.s. 144B of the Act for the assessment year 2020-21 by the Respondent No.1 bearing DIN No.ITBA/AST/S/143(3)/2022-23/1045782240(1) herein marked as Annexure-A1.
b) Stay the operation of the computation sheet dated 21.09.2022 issued by the Respondent No.1 bearing DIN & Document No.ITBA/AST/S/530/2022-
23/1045782343(1) herein marked as Annexure-A2.
c) Stay the operation of the notice of demand issued under Section 156 of the Act dated 21.09.2022 bearing DIN & Notice No.ITBA/AST/S/156/2022- 23/1045782293(1) herein marked as Annexure-A3. 3
d) Stay the operation of the penalty notice dated 21.09.2022 issued under Section 274 r.w.s. 270A of the Act bearing DIN No.ITBA/PNL/S/270A/2022- 23/1045782391(1) herein marked as Annexure-A4.
e) Stay all the consequential proceedings in pursuant to the assessment order, computation sheet, demand notice and penalty notice issued by the Respondent No.1.
f) Grant such other reliefs as this Honorable High Court may think fit including the cost of this writ petition.
2. Heard learned counsel for the petitioner, learned counsel for the respondents and perused the material on record.
3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that on 12.09.2022, respondent No.1 issued a notice under Section 142(1) of the Income Tax Act, 1961 (for short 'the I.T. Act), to which the petitioner made a request on 18.09.2022 seeking time up to 20.09.2022 since voluminous documents had to be collated and filed by the petitioner. However, on 21.09.2022, respondent No.1 issued a show-cause notice to the petitioner calling upon it to show cause as to why proposed variation should not be made and to submit a reply on or before 19.09.2022. On 18.09.2022, 4 the petitioner made a request for extension of time up to 20.09.2022 since it was in the process of collating documents and information. On 20.09.2022, petitioner submitted a reply and uploaded the details on the portal of the Income Tax Department. It is the grievance of the petitioner that despite the aforesaid facts and circumstances, the respondents have proceeded to pass the impugned order and issue the impugned demand notice without considering the reply and documents submitted by the petitioner, who is before this Court by way of the present petition.
4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.
5. As rightly contended by the learned counsel for the petitioner, despite the requests made by the petitioner for extension of time to submit is reply and documents to the notices and though the petitioner had submitted a reply and documents on 20.09.2022, the respondents have proceeded to pass the impugned order dated 21.09.2022 without considering the reply and documents nor providing sufficient or reasonable opportunity 5 to the petitioner and consequently, the impugned order being voilative of principles of natural justice and by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned order, computation sheet and notices and remit the matter back to the concerned respondents for reconsideration afresh in accordance with law.
6. In the result, I pass the following:
ORDER
(i) The petition is hereby allowed.
(ii) The impugned assessment order dated 21.09.2022, the impugned computation sheet dated 21.09.2022, the impugned demand notice dated 21.09.2022 and the impugned penalty notice dated 21.09.2022 are hereby set aside
(iii) The matter is remitted back to the concerned respondents for reconsideration afresh in accordance with law.
(iv) Liberty is reserved in favour of the petitioner to submit additional replies, pleadings, documents etc., before the concerned respondents, who shall provide the petitioner an 6 opportunity of personal hearing and proceed further in the matter in accordance with law.
Sd/-
JUDGE PKS/Bmc