Avant Garde Fashion Wear Private Limited V. Assessment Unit, National Faceless Assessment Centre and Principal Commissioner of Income Tax-4 and Principal Commissioner of Income Tax, Circle-1, Bangalore and Assistant/Deputy Commissioner of Income Tax, Circle 4(1)(1), Mumbai and Income Tax Officer, Ward 1(1)(1), Bangalore

WP/19289/2024

AI Insights

The case involves M/s Avant Garde Fashion Wear Private Limited, which challenged an assessment order and a demand notice issued by the National Faceless Assessment Centre and other income tax authorities for the assessment year 2018-19. The petitioner argued that the assessment was incorrectly made under a different PAN, although the same entity had already filed returns under another PAN, which had attained finality. The respondents contended that the issue of whether the returns were filed under the correct PAN was a factual matter for the assessing officer to determine. The court, upon preliminary hearing, decided to set aside the assessment order and remand the matter for re-evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799578 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 24-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961, Companies Act of 1956
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: PRASHANTH SHIVADASS
• Keywords: Faceless assessment; Income Tax; PAN Discrepancy; Re-assessment order; Writ petition
• Section: 144B

Judgement Text

" - 1 - NC: 2024:KHC:29049 WP No. 19289 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 19289 OF 2024 (T-IT) BETWEEN: 1. M/S AVANT GARDE FASHION WEAR PRIVATE LIMITED HAVING OFFICE AT 54/3, EJIPURA MAIN ROAD, VIVEK NAGAR, BANGALORE - 560 047 COMPANY REGISTERED UNDER COMPANIES ACT OF 1956. REPRESENTED BY THEIR AUTHORISED SIGNATORY RATAN B LATH, DESIGNATED AS DIRECTOR RESIDING AT NO. 35/1, ST. MARKS ROAD, VTC BANGALORE GPO, BENGALURU, KARNATAKA - 560 001. …PETITIONER (BY SRI. PRASHANTH SHIVADASS., ADVOCATE) AND: 1. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME TAX ACT 1961, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:29049 WP No. 19289 of 2024 2. PRINCIPAL COMMISSIONER OF INCOME TAX-4, AAYKAR BHAVAN, MAHARISHI KARVE ROAD, MUMBAI - 400 020. 3. PRINCIPAL COMMISSIONER OF INCOME TAX, CIRCLE-1, BANGALORE 5TH FLOOR, BMTC BUILDING, KORAMANGALA 80 FEET ROAD, NEAR KHB GAMES BUILDING, BANGALORE - 560 095. 4. ASSISTANT / DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(1), MUMBAI ROOM NO. 640, 6TH FLOOR, AAYKAR BHAWAN, MAHARISHI KARVE ROAD, MUMBAI - 400 02. 5. INCOME TAX OFFICER, WARD 1(1)(1), BANGALORE 2ND FLOOR, BMTC BUILDING, KORAMANGALA 80 FEET ROAD, NEAR KHB GAMES BUILDING, BANGALORE - 560 095. …RESPONDENTS (BY SRI. M DILIP., JUNIOR STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING AND SETTING ASIDE THE IMPUGNED RE-ASSESSMENT ORDER VIDE DIN NO. ITBA/AST/S/147/2023-24/106278321(1) DATED 15.03.2024 RECEIVED VIDE E-MAIL DATED 05.07.2024 PASSED BY RESPONDENT NO.1 ENCLOSED AT ANNEXURE-A AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2024:KHC:29049 WP No. 19289 of 2024 CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER (PER: HON'BLE MR JUSTICE S SUNIL DUTT YADAV) Petitioner has sought to challenge the assessment order at Annexure-A as well as the demand notice at Annexure-B as regards the assessment year 2018-19. 2. It is the case of the petitioner that the assessment order has been passed as regards the entity namely Avant Garde Fashion Wear Private Limited for the year 2018-19 as regards PAN No. AAAJA0012A. It is submitted that as regards the same entity, petitioner has already filed returns for the year 2018-19 which has attained finality as the said assessment has not been reopened. Reliance is placed on the acknowledgment for having filed returns as regards the petitioner under PAN No.AAGCA0657A for the assessment year 2018-19. Accordingly, it is submitted that the order at Annexure-A relating to a different PAN number but the same petitioner entity and proceedings initiated by the Department cannot - 4 - NC: 2024:KHC:29049 WP No. 19289 of 2024 stand, as for the same period of assessment year 2018- 19, return has been filed before the Authorities at Bangalore. 3. Learned counsel for the respondent submits that the aspect as to whether petitioner under the PAN No.AAGCA0657A has filed returns for the year 2018-19 is a matter that could be looked into by the assessing officer and a finding of fact is to be recorded. 4. Taking note of the contention, prima facie it appears that the petitioner has filed the returns for the year 2018-19 under the PAN No.AAGCA0657A for the same entity and the assessment order at Annexure-A has been passed for the same entity under different PAN viz., PAN No. AAAJA0012A. 5. In light of the above, it would be appropriate to set aside the assessment order at Annexure-A and the demand notice at Annexure-B and remand the matter back to the 1st respondent to reconsider the assessment - 5 - NC: 2024:KHC:29049 WP No. 19289 of 2024 proceedings which were the subject matter of the order at Annexure-A from the stage of post show cause notice. Petitioner is at liberty to make out its reply to the said show cause notice. Respondents to consider the matter thereafter as per law. All contentions are kept open. 6. Accordingly, petition is disposed off. Sd/- (S. SUNIL DUTT YADAV) JUDGE VP List No.: 1 Sl No.: 15 "