HANUMAN MOTORS PRIVATE LIMITED V. UNION OF INDIA

WP/23055/2021

AI Insights

In this case, Hanuman Motors Private Limited filed a writ petition against the Union of India and the Income Tax Department, challenging an assessment order under Section 144 of the Income Tax Act, 1961. The petitioner contended that due to bona fide reasons and unavoidable circumstances, they could not submit a reply to the notices issued by the respondents, which led to the impugned order being passed without their participation. The court, acknowledging the petitioner's claim of non-participation and the need for a fair opportunity to present their case, decided to set aside the impugned orders and remit the matter back for fresh consideration.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 678061 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-12-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: MALLAHAR RAO; K V ARAVIND
• Assessee Lawyers: ANISH ACHARYA
• Keywords: Assessment Order; Income Tax; Non-participation; Reconsideration; Writ of Certiorari
• Section: 144; 156

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 23RD DAY OF DECEMBER, 2021 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.23055 OF 2021 (T-RES) BETWEEN: HANUMAN MOTORS PRIVATE LIMITED HAVING OFFICE AT 5-2-99 P.B. NO. 27, VEERA HANUMAN MARG CHITPADY, HANUMAN TRANSPORT COMPANY UDUPI 576 101 REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. PANGALA GOPALA KRISHNA NAYAK …PETITIONER (BY SRI ANISH ACHARYA, ADVOCATE) AND: 1. UNION OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES NORH BLOCK NEW DELHI 110 001 REPRESENTED BY ITS SECRETARY 2. ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISIONER OF INCOME TAX INCOME TAX OFFICER NATIONAL E ASSESSMENT CENTRE DELHI-110 001 …RESPONDENTS (BY SRI MALLAHAR RAO, ADVOCATE FOR R1 SRI K.V.ARAVIND, ADVOCATE FOR R2) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY THE RESPONDENT DATED 30.04.2021 U/S 144 OF THE INCOME TAX ACT, 1961 AT ANNEXURE-A AND ETC. 2 THIS W.P. COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER In this petition, the petitioner has sought for the following reliefs: a) Issue a Writ of certiorari quashing Assessment order passed by the Respondent dated 30.04.2021 bearing DIN No. ITBA/AST/S/144/2021-22/1032743129(1) Under Section 144 of the Income Tax Act, 1961, at Annexure-A. b) Consequently issue a writ of certiorari or appropriate order quashing computation sheet bearing No.ITBA/AST/S/186/2021- 22/1032743148 (1) and also notice of demand dated 30.04.2021 bearing No.ITBA/AST/S/156/ 2021-22/1032743137(1) u/s 156 of the Income Tax Act, 1961 issued by the Respondent at Annexure B and C. c) Grant such other and further orders as this Hon'ble Court deems fit and proper under the facts and circumstances of the case in the interest of justice and equity. 2. Heard learned counsel for respondent No.1, respondent No.2 and perused the material on record. 3 3. In addition to reiterating the various contentions urged in the petition and referring to the documents produced by the petitioner, learned counsel for the petitioner specifically contended that the petitioner due to bonafide reasons, unavoidable circumstances and sufficient cause, could not submit his reply to the notices issued by the respondents. It is submitted that the petitioner has a prima facie good case to urge before the Assessing Authority and the balance of convenience is in favour of the petitioner, who has custody and possession of sufficient documents and material in support of his claim. It is therefore submitted that if an opportunity is granted in favour of the petitioner to submit his objections and documents and material in support of his claim, the petitioner would do so and the respondents are to be directed to consider the same and pass appropriate order on merits after giving sufficient opportunity to the petitioner in this regard. 4. Learned counsel for the respondents submits that despite sufficient opportunity being granted to the 4 petitioner, the petitioner did not submit either objections or documents or any material and consequently, the respondents were left with no option but to pass the impugned order, which does not warrant any interference. 5. A perusal of the impugned assessment order at Annexure-A will indicate that the respondent has proceeded to pass the impugned order without the petitioner participating in the assessment proceedings. However, in view of the specific assertion on the part of the petitioner that he could not participate in the assessment proceedings and file his objections as well as produce documents and materials in support of his claim, without expressing any opinion on the merits/demerits of the claim of the petitioner and in the interest of justice and to give one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned assessment order and remit the matter back to respondent No.1 for re- consideration afresh in accordance with law after giving an opportunity to the petitioner to file objections/reply and produce documents/materials in support of his claim. 5 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Assessment Order at Annexure-A bearing No.ITBA/AST/S/144/2021-22/1032743129(1) dated 30.04.2021, computation sheet bearing No.ITBA/AST/S/186/2021-22/1032743148(1) dated 30.04.2021 and also notice of demand bearing No.ITBA/AST/S/156/2021-22/1032743137(1) dated 30.04.2021 are hereby set aside. (iii) The matter is remitted back to respondent No2. for reconsideration afresh after giving sufficient opportunity to submit his objections and produce documents/material in support of his claim. (iv) All rival contentions are kept open and no opinion is expressed on the same. SD/- JUDGE Bmc "