GBB Construction Solutions V. Assessing Officer National Faceless Assessment Centre and Jurisdictional Assessing Officer Income Tax Officer, Ward - 4(3)(3) and Principal Commissioner of Income Tax-4

WP/36/2022

AI Insights

The case involves GBB Construction Solutions, represented by its partner Sri Bharat G.B., who filed a writ petition against the assessment order passed by the National Faceless Assessment Centre (respondent No.1) for the assessment year 2018-19. The petitioner contested the assessment order on the grounds that it was passed without a mandatory personal hearing, as required under Section 144B(7)(ix) of the Income Tax Act. The petitioner had filed a return for the assessment year 2018-19, which was taken up for scrutiny, leading to a show cause notice. Despite submitting a reply and requesting a personal hearing, the assessment order was passed without considering the petitioner's submissions. The court found this procedure to be in violation of the principles of natural justice and set aside the assessment order, directing a re-assessment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798860 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 09-02-2022
• Assessment Year: misc
• Laws Referred To: Constitution of India, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: ARAVIND CHAVAN
• Keywords: Assessment Order; Faceless assessment; Income Tax; Natural Justice; Writ petition
• Section: 226; 227; 144B(7)(ix)

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF FEBRUARY, 2022 BEFORE THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.36/2022 (T-IT) BETWEEN: GBB CONSTRUCTION SOLUTIONS NO.14/16, SRI VENKATESHWARA BUILDING DVG ROAD, BASAVANAGUDI BANGALORE - 560 004 REP. BY ITS PARTNER SRI BHARAT G.B. … PETITIONER (BY SRI ARAVIND V. CHAVAN, ADVOCATE) AND: 1. ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE NO.412-413, 1ST FLOOR, OPP. METRO PILLAR NO.793 DWARKA MOR, NEW DELHI - 110 059. 2. JURISDICTIONAL ASSESSING OFFICER INCOME TAX OFFICER, WARD - 4(3)(3) BMTC BUILDING, 80 FEET ROAD KORAMANGALA BENGALURU - 560 095. 3. PRINCIPAL COMMISSIONER OF INCOME TAX-4, BMTC BUILDING, 80 FEET ROAD KORAMANGALA BENGALURU - 560 095. … RESPONDENTS (BY SRI E.I. SANMATHI, ADVOCATE) 2 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY R-1 DATED 23.04.2021 VIDE ANNEXURE-G FOR A.Y. 2018-19 AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT, MADE THE FOLLOWING: ORDER Petitioner has sought for setting aside of the assessment order passed by respondent No.1 dated 23.04.2021 at Annexure-G for the assessment year 2018-19 and has also sought for declaration of the impugned assessment order at Annexure-G as \"non-est\" as per Section 144B(7)(ix) of the Income Tax Act for failing to give mandatory hearing before passing the assessment order. 2. Petitioner submits that after return was filed for the Assessment year 2018-19, return of the assessee was taken up for scrutiny and a show cause notice came to be issued as per Annexure-D dated 18.04.2021 calling upon the petitioner to furnish his reply by 21.04.2021. Petitioner submits that an application for adjournment was made as is evidenced by the e-mail at Annexure-E seeking for further 3 time to file his reply to the show cause notice. It is further submitted that on 23.04.2021 as per Annexure-F, the petitioner has submitted his reply to the show cause notice with a further request to grant an opportunity of personal hearing before taking any decision in the matter. The said reply submitted to the Department is evidenced by Annexure-F2 acknowledgment. It is noticed that the assessment order itself has been passed on 23.04.2021 at Annexure-G and at paragraph No.4 of the Assessment order, the Assessing Officer has observed that, 'no submissions have been made by the assessee as regards to the show cause notice dated 18.04.2021'. 3. Taking note that the petitioner has made out reply on 23.04.2021 itself, non-consideration of the same and passing of order by the Assessing Officer is in violation of the principles of natural justice and accordingly, the Assessment Order at Annexure-G dated 23.04.2021 for the assessment year 2018-19 is set aside and the matter is relegated to respondent No.1 to redo the assessment 4 proceedings from the stage of consideration of reply to the show cause notice at Annexure-D. Reply to the show cause notice already submitted by the petitioner may be considered and the request of the petitioner for personal hearing also to be considered by the Authority. Liberty is reserved to the petitioner to submit any further documents or submissions before the Assessing Authority. 4. Subject to the discussions made above, the petition is disposed off. Sd/- JUDGE VP "