Govindappa Gangadhar V. The Assessing Authority National E. Assessment Centre, Income Tax Department, Ministry of Finance, Government of India and The Income Tax Officer Ward 1 Kolar

WP/20592/2023

AI Insights

In this case, the petitioner, Govindappa Gangadhar, challenged the ex-parte assessment and subsequent penalty orders issued by the Income Tax Department for the assessment year 2018-19. The petitioner contended that he was not properly served with the notices under Sections 142(1) and 143(2) of the Income Tax Act, 1961, which led to the ex-parte orders. The court found that the respondent had indeed failed to serve the notices properly and had issued subsequent notices to the same incorrect address without providing a reasonable opportunity for the petitioner to contest the assessments. Consequently, the court set aside the orders and remitted the case for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799839 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 26-02-2024
• Assessment Year: misc
• Laws Referred To: Article 226 and 227 of the Constitution of India, Section 144 r.w.s. 144B of the Income Tax Act, 1961, Section 142(1) and 143(2) of the Income Tax Act, 1961, Section 272A(1)(d) of the Income Tax Act, 1961, Section 271AAC(1) of the Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: R CHANDRASHEKAR; KASHINATH KALMATH
• Keywords: Assessment year 2018-19; Ex parte assessment; Income Tax; Natural Justice; Penalty order
• Section: 144; 142(1); 143(2); 144B; 271AAC(1); 272A(1)(d)

Judgement Text

" - 1 - NC: 2024:KHC:7915 WP No. 20592 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 20592 OF 2023 (T-IT) BETWEEN: GOVINDAPPA GANGADHAR S/O GOVINDAPPA AGED ABOUT 53 YEARS, 1ST MAIN ROAD, 3RD CROSS, KURBURAPET, KOLAR-563 101. …PETITIONER (BY SRI. R. CHANDRASHEKAR AND SRI. KASHINATH KALMATH., FOR SRI. RAMA MURTHY.R., ADVOCATES) AND: 1. THE ASSESSING AUTHORITY NATIONAL E. ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, DELHI-110 001. 2. THE INCOME TAX OFFICER WARD 1 KOLAR -563 101. …RESPONDENTS (BY SRI.M. DILIP.,ADVOCATE) THIS W.P IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER OF EX PARTY ASSESSMENT MADE FOR ASSESSMENT YEAR 2018-19 U/S 144 R W S 144B OF THE ACT VIDE ITBA/AST/S/144/2021-22/1032622831(1) ANNX-C AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: Digitally signed by VANDANA S Location: High Court of Karnataka - 2 - NC: 2024:KHC:7915 WP No. 20592 of 2023 ORDER In this petition,, petitioner seeks for the following reliefs:- “ 1. The petitioner humbly pray this Hon’ble court be pleased to issue an order of writ of certiorari or in the nature of writ of certiorari quashing the order of ex-party assessment made for the assessment year 2018-19 u/s. 144 r.w.s. 144B of the Act vide ITBA/AST/S/144/2021- 22/10326222831/(1) (Annexure-‘C’); and 2. The petitioner humbly pray this Hon’ble court be pleased to issue an order of writ of certiorari or in the nature of writ of certiorari quashing the order of ex-party penalty order made for the assessment year 2018-19 dated: 12.01.2022 in ITBA/PNL/272/A(1) /2021- 22/1038685402(1) levied u/s. 272A(1) (d)( Annexure-‘E’); and 3. The petitioner humbly pray this Hon’ble court be pleased to issue an order of writ of certiorari or in the nature of writ of certiorari quashing the order of ex-party penalty order made for the assessment year 2018-19 dated: 24.01.2022 in ITBA/PNL/272/AAC(1) / 2711AAC(1)/2021-22/1039025619(1) levied u/s 271AAC(1) (Annexure-‘F’); and 4. The petitioner humbly pray this Hon’ble court be pleased to issue such writ/writs or orders as this Hon’ble Court deem it fit in the Petitioner’s case in the interest of justice.” - 3 - NC: 2024:KHC:7915 WP No. 20592 of 2023 2. Heard learned counsel for the petitioner and learned counsel for the respondent-revenue and perused the material on record. 3. The material on record discloses that pursuant to the proceedings initiated by the respondent, the petitioner did not contest the same and did not file his response / reply to the notice of the respondent, who has proceeded to pass the impugned ex- parte assessment order followed by penalty orders, notices etc., all of which assailed before this Court by way of the present petition. 4. It is the grievance of the petitioner that the respondent having come to the conclusion that the petitioner was not served with the Notices under Section 142(1) and 143(2) of the Income Taxt Act, 1961 on the ground that he was not residing / operating at the said address, the respondent once again issued notice to the very same address and without providing sufficient and reasonable opportunity to the petitioner who has not served with the same, the respondents have proceeded to pass the impugned ex-parte order which is violative of principles of nature justice and deserves to be quashed and the matter be remitted back to the respondent for - 4 - NC: 2024:KHC:7915 WP No. 20592 of 2023 reconsideration afresh after providing an opportunity to the petitioner to submit his reply / response along with documents. 5. Per contra, learned counsel for the respondent – revenue submits that there is no merit in the petition and that the same is liable to be dismissed. 6. A perusal of the impugned order will indicate that at paragraph-2, the respondent has recorded that the Notice under Section 143(2) and 143(1) has not been served upon the petitioner since the petitioner was neither residing nor operating at the address provided to the respondent. In this context, it is relevant to state that having recorded the said finding to the effect that the petitioner was not served with the aforesaid notices, the respondent once again erroneously purported to issue fresh and subsequent notices to the very same address and has proceeded to pass the impugned order without providing sufficient and reasonable opportunity to the petitioner, thereby violating the principles of natural justice. Further, in the light of the assertion on the part of the petitioner that his inability and omission to submit his response / reply and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient case, I deem it - 5 - NC: 2024:KHC:7915 WP No. 20592 of 2023 just and appropriate to set aside the impugned assessment order and consequent penalty orders, notices etc., and remit the matter back to the respondent for reconsideration afresh in accordance with law. 7. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned orders at Annexures-C, E and F dated 22.09.2019, 12.01.2022 and 24.01.2022 respectively are hereby set aside. (iii) The matter is remitted back to the respondent for reconsideration afresh in accordance with law. (iii) Liberty is reserved in favour of the petitioner to file objections, pleadings, documents etc., which shall be considered by the respondent. (iv) Liberty is also reserved in favour of the petitioner to make a request for personal hearing which shall be considered by the respondent in accordance with law. Sd/- JUDGE Srl. "