Azeem Infinite Dwelling India Pvt Ltd V. The Income Tax Officer Ward 1(1)(1) and Assessment Unit National Faceless Assessment Center, Income Tax Department

WP/11636/2024

AI Insights

The case involves M/s Azeem Infinite Dwelling India Pvt Ltd, which challenged several orders and notices issued by the Income Tax Department under the Income Tax Act, 1961, for the assessment year 2018-19. The petitioner argued that they were not properly communicated the notices, as the email ID used was that of a former accountant who no longer worked with the company. The court found that this constituted a violation of the principles of natural justice and thus set aside the impugned orders and notices, remitting the matter back to the stage of the notice under Section 148A(b).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 810617 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: VANI
• Keywords: Assessment Order; Email Communication; Income Tax; Natural Justice; Notice; Penalty
• Section: 147; 148; 144; 274; 144B; 148A(d); 272A(1)(d); 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:24862 WP No. 11636 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 11636 OF 2024 (T-IT) BETWEEN: 1. M/S AZEEM INFINITE DWELLING INDIA PVT LTD NO.6, G M PEARL, 1ST PHASE, BTM LAYOUT, BANGALORE - 560 068, REPRESENTED BY ITS MANAGING DIRECTOR, SRI GULAM MUKTHIYAR S/O LATE GULAM RASOOL AGED ABOUT 44 YEARS REGISTERED UNDER COMPANIES ACT 1956. … PETITIONER (BY SMT VANI H., ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 1(1)(1) BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BANGALORE - 560 001 2. ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTER, INCOME TAX DEPARTMENT, REP. BY INCOME TAX OFFICER GOVERNMENT OF INDIA, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI - 110 001 … RESPONDENTS (BY SRI. M. DILIP, JUNIOR STANDING COUNSEL) Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:24862 WP No. 11636 of 2024 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE IMPUGNED ORDER BEARING DIN AND ORDER NO. ITBA/AST/F/148A/2022-23/1042426979(1) DATED 1.4.2022 PASSED UNDER SECTION 148A(d) OF THE ACT BY THE R1 FOR THE ASSESSMENT YEAR 2018-19 VIDE ANNEXURE-A AND CONSEQUENTLY SET ASIDE THE NOTICE NO. ITBA/AST/S/148 1/2022-23/1042428576(1) DATED 1.4.2022 ISSUED UNDER SECTION 148 BY THE R1 VIDE ANNEXURE-B AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has challenged the order passed under Section 148A(d) of the Income Tax Act, 1961 ('the Act for brevity) at Annexure-'A' dated 01.04.2022, the notice issued under Section 148 at Annexure-'B' dated 01.04.2022, the Assessment Order passed under Section 147 read with Section 144 read with Section 144B at Annexure-'D' dated 26.02.2024, the notice of demand issued under Section 156 at Annexure-'E' dated 26.02.2024 and the notice of penalty issued under Section 274 read with Section 272A(1)(d) at Annexure-'F' dated 26.02.2024. - 3 - NC: 2024:KHC:24862 WP No. 11636 of 2024 2. It is the case of the petitioner that the petitioner has not been communicated with the notice which has culminated in the passing of Assessment Order and that the E-mail ID referred to in the Assessment Order refers to the E-mail ID previously created by the earlier Accountant who has left the services of the Company and in light of the same, all correspondences and notices addressed to the E-mail ID referred to in the Assessment Order as [e-mail] not having been communicated, the entirety of proceedings are vitiated by the violation of principles of natural justice and that the petitioner may be granted an opportunity to respond to the notice issued under Section 148A(b) and the petitioner would cooperate in the conclusion of proceedings expeditiously. 3. Learned counsel for the petitioner has filed a memo enclosing copy of the notice dated 15.03.2022 issued under Section 148A(b) to the petitioner. - 4 - NC: 2024:KHC:24862 WP No. 11636 of 2024 4. Taking note of the memo filed and submission made and in particular, to the E-mail ID to which the correspondences and notices have been sent being that of the former Accountant who is no longer in the services of the Company, it would meet the ends of justice to relegate the petitioner to the stage of reply to notice under section 148A(b) of the Act dated 15.03.2022. 5. In light of the above, Annexure-'A' dated 01.04.2022, Annexure-'B' dated 01.04.2022, Annexure-'D' dated 26.02.2024, Annexure-'E' dated 26.02.2024 and Annexure-'F' dated 26.02.2024 are set aside. The matter is remitted to the stage of Section 148A(b). Accordingly, the petition is disposed off. Sd/- JUDGE VGR "