GUTHU RITHESH RAI V. DY. COMMISSIONER OF INCOME TAX

WP/22249/2022

AI Insights

In this case, the petitioner, Guthu Rithesh Rai, challenged several notices and orders issued by the Deputy Commissioner of Income Tax under the Income Tax Act, 1961, for the Assessment Year 2018-19. The petitioner sought to quash a notice under Section 153C, an assessment order under Section 143(3) read with Section 153C, and notices of demand and penalty under Sections 156 and 271AAC(1) respectively. The petitioner argued that due to unavoidable circumstances, previous notices were not responded to, and requested a fresh opportunity to contest the proceedings. The respondent opposed the petition, asserting there was no merit. The court, without delving into the merits of the case, decided to set aside the impugned orders and remit the matter back for a fresh assessment, allowing the petitioner to submit responses and documents.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 760953 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-12-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: SHREEHARI
• Keywords: Assessment year 2018-19; Demand; Income Tax; Notice; Penalty; Reconsideration; Writ of Certiorari
• Section: 143(3); 153C; 271AAC(1); 156; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF DECEMBER, 2022 BEFORE THE HON’BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.22249/2022 (T-IT) BETWEEN: GUTHU RITHESH RAI SON OF NARAYANA RAI, AGED ABOUT 48 YEARS, ALIKE GUTHU HOUSE, ALIKE POST AND VILLAGE, VIA S.S. VIHAR BANTWAL TALUKA, DAKSHINA KANNADA-574 235, PRESENTLY RESIDING AT FLAT NO. T 302, ENN AAR KAY SADAN, 5/1-7, 4TH CROSS, KALPANA CHAWLA ROAD, CENTRAL EXCISE COLONY, SANJAY NAGAR, BENGALURU-560094. ...PETITIONER (BY SRI. SHREEHARI K., ADV., ) AND: DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(4), BENGALURU, THE ASSESSING OFFICER UNDER INCOME TAX ACT, 1961, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU-560 001. …RESPONDENT (BY SRI. M. DILIP, ADV.,) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE 2 NOTICE UNDER SECTION 153C OF THE INCOME TAX ACT, 1961 DATED 13.10.2021 ISSUED BY RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2018-19 WHICH BEARS THE DIN VIZ ITBA/AST/S/153C/2021-22/1036355877 (1) WHICH IS ENCLOSED AS ANNEXURE-A AND ETC. THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: ORDER 1. In this writ petition, petitioner has sought for the following reliefs: \"a. Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the notice under section 153C of the Income Tax Act, 1961 dated 13.10.2021 issued by respondent No.1 for the Assessment Year 2018-19 which bears the DIN viz., ITBA/AST/S/153C/2021-22/1036355877 (1) which is enclosed as Annexure A. b. Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the order of assessment under section 143(3) read with Section 153C of the Income Tax Act,1961 dated 30.03.2022 issued by respondent No.1 for the Assessment Year 2018-19 which bears the DIN viz, ITBA/AST/M/153C/2021-22/1042099857(1) which is enclosed as Annexure B. c. Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the notice of demand under section 156 of Income Tax Act,1961 dated 3 30.03.2022 issued by respondent No.1 for the Assessment Year 2018-19 which bears the DIN viz, ITBA/AST/M/153C/2021-22/1042099857(1) which is enclosed as Annexure B1. d. Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the order levying penalty under section 271AAC(1) of the Income Tax Act, 1961 dated 27.09.2022 issued by respondent No.1 for the Assessment Year 2018-19 which bears the DIN viz., IBTA/PNL/F/271AAC(1)/2022-23/1046033716(1) which is enclosed as Annexure C. e. Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the notice of demand under section 156 of the Income Tax Act, 1961 dated 27.09.2022 issued by respondent No.1 for the Assessment Year 2018-19 which bears the DIN viz, IBTA/PNL/S/156/2022-23/1046033662(1) which is enclosed as Annexure C1. f. And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.\" 2. Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record. 4 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that while respondent conducted a search of the petitioner's premises situated at Bengaluru, all the notices issued prior to the impugned order were sent to the address of the petitioner at Bantwal and the same could not be responded to on account of bona fide, reasonable, unavoidable circumstances and sufficient cause. It is submitted that the petitioner has a good case to urge on merits and as such, it is necessary that the petitioner is afforded one more opportunity to contest the proceedings by setting aside the impugned order and remitting the matter back to the respondents for reconsideration afresh in accordance with law. 4. Per contra, learned counsel for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed. 5. Though several contentions have been urged, in view of the specific assertions on the part of the petitioner that the 5 inability and omission on the part of the petitioner to contest the proceedings by filing replies, documents, etc., to the Show Cause Notice was for bona fide reasons, without expressing any opinion on the merits / demerits of the rival contentions of the parties, I deem it just and appropriate to dispose of the matter by setting aside the impugned order and remit the matter back to the respondent for reconsideration afresh in accordance with law after providing opportunity to submit a reply to the Show Cause Notice and thereafter, proceed in accordance with law. 6. In the result, I pass the following: ORDER (i) The Writ Petition is hereby allowed. (ii) The impugned notice dated 13.10.2021 at Annexure 'A', the Assessment Order dated 30.03.2022 and Notice of Demand dated 30.03.2022 at Annexures 'B' and 'B1' respectively, impugned order of penalty dated 27.09.2022 and Notice of Demand at Annexures 'C' and 'C1' respectively,, issued by respondent No.1, are hereby set aside. 6 (iii) Matter is remitted back to the respondent to proceed from the stage of issuance of Show Cause Notice. (iv) Petitioner is directed to file response / reply along with documents to the Show Cause Notice, within a period of four weeks from the date of receipt of a copy of this order, which shall be considered by the respondent, who shall provide an opportunity of personal hearing to the petitioner and proceed thereafter in accordance with law. SD/- JUDGE RK CT:AKR "