Cogos Technologies Private Limited V. Union of India Ministry of Finance, Department of Revenue, Central Board of Direct Taxes and Additional/Joint/Deputy/Assistant Commissioner of Income Tax Income-Tax Officer, National E-Assessment Centre

WP/32447/2024

AI Insights

In this writ petition, M/s Cogos Technologies Private Limited challenged an assessment order passed by the Income Tax Department, which was issued without a personal hearing despite the petitioner's request. The petitioner argued that the demand made by the respondents was not due, asserting that all taxes had been paid as per the law. The respondents contested the claim of not providing a hearing but admitted that the order was passed ex parte. The court found that the principles of natural justice were not followed, leading to the setting aside of the assessment order and related documents, and remanding the case for a proper hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 816267 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 13-12-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: ANISH ACHARYA
• Keywords: Assessment Order; Ex-parte; Income Tax; Personal hearing; Show cause notice
• Section: 143(3); 156

Judgement Text

" - 1 - NC: 2024:KHC:52062 WP No. 32447 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF DECEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO.32447 OF 2024 (T-RES) BETWEEN: 1. M/S COGOS TECHNOLOGIES PRIVATE LIMITED 750, (NEW NO.38) 9TH MAIN, JAYANAGAR 4TH BLOCK, BENGALURU-560 011 (REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. SREERAM DURGA VENKATA PRASAD) A COMPANY REGISTERED UNDER, 1956. …PETITIONER (BY SRI ANISH ACHARYA, ADVOCATE) AND: 1. UNION OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DEHLI-110 001 REPRESENTED BY ITS SECRETARY. 2. ADDITIONAL/JOINT/DEPUTY/ ASSISTANTCOMMISSIONER OF INCOME TAX INCOME-TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, DELHI-110 001. …RESPONDENTS (BY SRI M. DILIP, ADVOCATE) Digitally signed by H K HEMA Location: High Court of Karnataka - 2 - NC: 2024:KHC:52062 WP No. 32447 of 2024 THIS PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH ASSESSMENT ORDER PASSED BY THE RESPONDENT NO.2 DATED 31ST MARCH 2024 BEARING DIN NO.ITBA/AST/S/143(3)/2023- 24/1063751043(1) UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961, VIDE ANNEXURE-A, ETC. THIS PETITION COMING ON FOR ORDERS, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.I.ARUN ORAL ORDER 1. The petitioner has challenged the assessment order dated 31.03.2024 passed by second respondent (vide Annexure-'A' to the writ petition) on the ground that in spite of its request, a personal hearing was not granted. Consequently, the computation sheet and also notice of demand under Section 156 of the Income Tax Act, 1961 also has been challenged by the petitioner. The contention of the petitioner is that it is not due for the amount as demanded by the respondents and if an opportunity is given, it would convince the Authorities - 3 - NC: 2024:KHC:52062 WP No. 32447 of 2024 concerned that all the up-to-date taxes have been paid in accordance with law. 2. Though the respondents dispute the fact that whether the petitioner was given an opportunity of hearing or not, it is admitted that the impugned order is passed ex parte without hearing the petitioner. 3. Under the circumstances, I am of the opinion that interest of justice would be met, if the impugned order is set aside and the matter is relegated to the stage of show cause notice dated 19.03.2024 by giving an opportunity to the petitioner to file a reply and request for a personal hearing from the respondents. Hence, the following: ORDER i. The impugned assessment order dated 31.03.2024 bearing DIN No.ITBA/AST/S/143(3)/2023-24/1063751043(1) passed by second respondent for the assessment year 2022-23 (vide Annexure-'A' to the writ petition) is hereby set aside. - 4 - NC: 2024:KHC:52062 WP No. 32447 of 2024 ii. Consequently, the computation sheet dated 31.03.2024 bearing No.ITBA/AST/S/622/2023- 24/1063751126(1) issued by second respondent (vide Annexure-'B' to the writ petition) and demand notice dated 31.03.2024 under Section 156 of the Income Tax Act, 1961 bearing No.ITBA/AST/S/156/2023-24/1063751185(1) issued by second respondent (vide Annexure-'C' to the writ petition) are hereby set aside; iii. Petitioner is relegated to the stage of show cause notice dated 19.03.2024 and liberty is given to it to file a suitable reply within a period of three weeks from today and if there is a request for personal hearing, the same shall be granted by respondent No.2 and appropriate orders shall be passed thereafter; iv. The writ petition stands disposed of accordingly. Sd/- (M.I.ARUN) JUDGE VMB List No.: 1 Sl No.: 32 "