Bangalore Cables Private Limited V. Assessment Unit Rep. by Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer National Faceless Assessment Centre, Income Tax Department, Ministry of Finance and The Principal Chief Commissioner of Income Tax Karnataka and Goa and The Deputy Commissioner of Income Tax Circle 1(1)(1) and The Deputy Director of Income Tax (I and CI)

WP/14540/2024

AI Insights

Bangalore Cables Private Limited filed a writ petition challenging various orders and notices issued by the Income Tax Department, including the assessment order for the year 2016-17. The petitioner argued that during the assessment proceedings, a request for a personal hearing was made but not considered, and the proceedings were concluded without this opportunity. The court recognized the procedural requirement for a personal hearing under Section 144-B(6)(vii) and (viii) of the Income Tax Act and decided to set aside the contested orders, allowing the petitioner to present their case in a personal hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 808778 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 10-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP; ARAVIND CHAVAN
• Assessee Lawyers: VENKATESH
• Keywords: Adjournment request; Assessment Order; Income Tax; Personal hearing
• Section: 147; 148; 142(1); 144B; 226; 148(A)(b); 227; 148 A (d)

Judgement Text

" - 1 - NC: 2024:KHC:26670 WP No. 14540 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 14540 OF 2024 (T-IT) BETWEEN: 1. BANGALORE CABLES PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 REPRESENTED BY ITS ACCOUNTS MANAGER SRI POTTIPADU BASAVA REDDY S/O SRI YERRISWAMY REDDY P AGED ABOUT 26 YEARS, NO. 37/4-13/1, HOSUR MAIN ROAD MADIVALA BANGALORE - 560 034 … PETITIONER (BY SRI. VENKATESH. G., ADVOCATE) AND: 1. ASSESSMENT UNIT REP. BY ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, INCOME - TAX DEPARTMENT, MINISTRY OF FINANCE, 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:26670 WP No. 14540 of 2024 2. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA C R BUILDING, QUEENS ROAD, BANGALORE - 560 001 3. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1(1)(1), BMTC BUILDING, NEAR NATIONAL GAMES VILLAGE, KORAMANGALA BANGALORE - 560 095 4. THE DEPUTY DIRECTOR OF INCOME TAX (I AND CI) C R BUILDING ANNEXE QUEENS ROAD, BANGLORE - 560 001 … RESPONDENTS (BY SRI. M. DILIP, JUNIOR STANDING COUNSEL FOR R1 TO R3; SRI ARAVIND V. CHAVAN, ADVOCATE FOR R4) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE ASSESSMENT ORDER PASSED BY THE R1 UNDER SECTION 147 R.W.S 144B OF THE ACT DTD 16.03.2024 BEARING DIN NO.ITBA/AST/S/147/2023-24/1062727962(1) FOR THE ASSESSMENT YEAR 2016-17 BY THE R1 HEREIN MARKED AS ANNEXURE-A1 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2024:KHC:26670 WP No. 14540 of 2024 ORDER Petitioner has challenged the assessment order at Annexure-A1; demand notice at Annexure-A3; penalty notice at Annexure-A4; notices under Section 148-A(b) of the Income Tax Act at Annexures-B1 and B2; order under Section 148-A(d) of the Act at Annexure-B3 as well as the notice under Section 148 of the Act at Annexure-B4. 2. It is the case of the petitioner that during the course of assessment proceedings as regards the notice under Section 142(1), the petitioner no doubt had made his response but had requested for personal hearing and the opportunity of personal hearing was fixed on 11.03.2024 and on such date, due to the inability of petitioner’s counsel to attend and avail of such opportunity, he had requested for adjournment. Reliance is placed on the e-Proceedings Response Acknowledgment at Annexure-L. It is further submitted that request for adjournment though not having been considered, no observation is made in the assessment order regarding the - 4 - NC: 2024:KHC:26670 WP No. 14540 of 2024 said adjournment request made and proceedings have culminated. 3. It is submitted that the petitioner has certain clarifications to make out to the notice under Section 142(1) and if the matter is relegated to such stage, the petitioner would avail of opportunity of personal hearing and make out clarifications. 4. Taking note of the facts as made out including the requirement of affording personal hearing as per the procedure prescribed under Section 144-B(6)(vii) and (viii) of the Act, it must be noticed that admittedly the request for adjournment was made as is evidenced by the acknowledgment at Annexure-L. 5. In light of the contention advanced, it would meet the ends of justice by relegating the petitioner to the stage of reply to the notice under Section 142(1) as well as keeping it open for the petitioner to make out a request for personal hearing as per the applicable procedure. - 5 - NC: 2024:KHC:26670 WP No. 14540 of 2024 Accordingly, the assessment order at Annexure-A1; demand notice at Annexure-A3 and the penalty notice at Annexure-A4, are set aside. 6. The matter is relegated to the stage of notice under Section 142(1) of the Act. In light of response having already been made out to the notice under Section 142(1), the petitioner is now to make out request for affording an opportunity of personal hearing as per the applicable procedure and the Authorities may take note of it and the proceedings to be concluded in accordance with law. All contentions are kept open. 7. Accordingly, petition is disposed off. Sd/- JUDGE VP "