C. M. Ghattad Oil Mill V. The Assessment Unit, Income-Tax Department, National Faceless Assessment Centre, Delhi and The Income Tax Officer, Ward-1 and TPS, Aayakar Bhavan Section No.24, Navanagar, Bagalkot

WP/105563/2023

AI Insights

The case involves C. M. Ghattad Oil Mill, represented by its partner Sri. Chanamallappa Mallappa Ghattad, who filed a writ petition against the notices and orders issued by the Income Tax Department for the assessment year 2017-18. The petitioner challenged the notice under Section 148 and the subsequent orders under Sections 148A(d) and 147 read with 144B, claiming that they were issued without adequate opportunity for rebuttal and adjudication of objections. The court found that the petitioner was not given sufficient time to respond to the notice before the orders were passed, leading to the quashing of the assessment order and remitting the matter back for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 798469 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 24-11-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ
• Assessee Lawyers: H R KAMBIYAVAR
• Keywords: Assessment Order; Income Tax; Notice; Opportunity to Respond; Writ of Certiorari; Writ of prohibition
• Section: 147; 148; 144B; 148A; 226; 227

Judgement Text

" - 1 - NC: 2023:KHC-D:13750 WP No. 105563 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 24TH DAY OF NOVEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE WRIT PETITION NO. 105563 OF 2023 (T-IT) BETWEEN: C. M. GHATTAD OIL MILL, (MANUFACTURERS OF EDIBLE OILS) NEAR BUS-STAND, BUS-STAND BACK SIDE, KERUR-587206, KARNATAKA. (PAN-AABAJ3348Q), RPRESENTED BY ITS PARTNER SRI. CHANAMALLAPPA MALLAPPA GHATTAD, AGED 53 YEARS, SON OF LATE MALLAPPA CHANAMALLAPPA GHATTAD. …PETITIONER (BY SRI. H. R. KAMBIYAVAR, ADVOCATE) AND: 1. THE ASSESSMENT UNIT, INCOME-TAX DEPARTMENT, NATIONAL FACELESS, ASSESSMENT CENTRE, DELHI-110001. 2. THE INCOME TAX OFFICER, WARD-1 AND TPS, AAYAKAR BHAVAN SECTION NO.24, NAVANAGAR, BAGALKOT-587103. …RESPONDENTS (BY SRI.Y. V. RAVIRAJ, ADV. FOR R1 AND R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE A WRIT OF CERTIORARI OR A DIRECTION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE NOTICE DATED 26.07.2022 ISSUED UNDER SECTION 148 OF THE ACT FOR THE ASSESSMENT YEAR MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Date: 2023.12.02 13:54:03 +0530 - 2 - NC: 2023:KHC-D:13750 WP No. 105563 of 2023 2017-18 IN FILE DIN AND NOTICE NO. ITBA/AST/M/148-1/2022- 23/1044153347(1) (ANNEXURE-A) ISSUED BY THE 2ND RESPONDENT AND ISSUE A WRIT OF CERTIORARI OR A DIRECTION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE ORDER DATED 26.07.2022 PASSED UNDER SECTION 148A(D) OF THE ACT FOR THE ASSESSMENT YEAR 2017-18 IN FILE DIN AND NOTICE NO. ITBA/COM/F/17/2022-23/1044105402(1) ANNEXURE-B PASSED BY THE 2ND RESPONDENT AND ISSUE A WRIT OF CERTIORARI OR A DIRECTION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE ASSESSMENT ORDER DATED 20.05.2023 PASSED UNDER SECTION 147 RSW 144B OF THE ACT FOR THE ASSESSMENT YEAR 2017-18 IN FILE DIN: ITBA/AST/S/147/2023-24/1053023594(1) ALONG WITH DEMAND NOTICE AND COMPUTATION SHEET (ANNEXURE-D) PASSED BY THE 1ST RESPONDENT. AND ISSUE A WRIT OF PROHIBITION OR A DIRECTION IN THE NATURE OF PROHIBITION, RESTRAINING THE RESPONDENT FROM PROCEEDINGS FURTHER IN THE MATTER OF RECOVERY OF THE ENTIRE DEMAND OF RS. 6,08,39,886/- IN PURSUANCE OF THE ASSESSMENT ORDER DATED 20.05.2023 PASSED UNDER SECTION 147 RWS 144B OF THE ACT FOR THE ASSESSMENT YEAR 2017-18 IN FILE DIN: ITBA/AST/S/147/2023-24/1053023594(1) ALONG WITH DEMAND NOTICE AND COMPUTATION SHEET (ANNEXURE-D) PASSED BY THE 1ST RESPONDENT AND IF THE HON BLE COURT DESIRES NOT TO QUASH THE ASSESSMENT ORDER AS INVALID, THERE BEING LACK OF OPPORTUNITY AND LACK OF ADJUDICATION OF THE OBJECTIONS RAISED FOR REOPENING THE ASSESSMENT UNDER SECTION 147 OF THE ACT BY ISSUE OF NOTICE UNDER SECTION 148 OF THE ACT AND THE SAME HAVING NOT BEEN PROVIDED TO THE PETITIONER FOR ITS REBUTTAL, THE ASSESSMENT ORDER IS REQUIRED TO BE QUASHED AND THE RESPONDENT SHOULD BE DIRECTED TO GIVE FRESH OPPORTUNITY TO THE PETITIONER BY PROVIDING AN ADJUDICATION ORDER AGAINST THE OBJECTIONS RAISED BEFORE THE ASSESSMENT STOOD CONCLUDED AND THAT TOO AFTER PROVIDING OPPORTUNITY TO THE PETITIONER TO FURNISH THE PARTICULARS OF THE MEMBERS OF THE PETITIONER. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2023:KHC-D:13750 WP No. 105563 of 2023 ORDER Heard the learned counsel for the petitioner and learned counsel for the respondents. 2. Petitioner is aggrieved by the notice dated 26.07.2022 issued under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’ for short) pertaining to assessment year 2017-18, which is marked at Annexure-A. Petitioner is also seeking writ of certiorari to quash the order dated 20.05.2023 passed under Section 147 r/w Section 144B of the Act for the assessment year 2017-18. Writ of prohibition is also sought to quash the order dated 20.05.2023 passed under Section 147 r/w Section 144B of the Act for the same assessment year, which is marked at Annexure-D. 3. The essence of the petitioner’s contention is that adequate opportunity was not given to the petitioner before passing the orders at Annexure-D. Learned counsel for the petitioner would point out that only 4 days time is granted to respond to the notice issued before passing the orders. 4. The learned counsel for the respondents would contend that the sufficient time was granted. - 4 - NC: 2023:KHC-D:13750 WP No. 105563 of 2023 5. Considering the submission made and on perusal of the records, this Court is of the view that the petitioner be given an adequate opportunity to respond before passing the order under Section 147 read with Section 144B of the Act, 1961. Accordingly, this Court proceeds to pass the following: ORDER (i) Petition is allowed in part. (ii) The impugned assessment order dated 20.05.2023 passed by the 1st respondent at Annexure-D is quashed. (iii) Matter is remitted to the respondent-authority to decide afresh in accordance with law after providing a fair opportunity to the petitioner to file his response. (iv) It is needless to say that the petitioner is to be informed about the date of hearing. Sd/- JUDGE MBS,CKK/ct-an List No.: 1 Sl No.: 56 "