Kadadharvalli Bharatharaju Keerthan V. The Union of India represented by its Joint Secretary, Ministry of Finance and Department of Revenue, (Income Tax Department) and The Deputy/Assistant Commissioner of Income Tax, Income Tax Officer, Assessment Unit, Income Tax Department and The Deputy/Assistant Commissioner of Income Tax, Income Tax Officer, The National Faceless Assessment Centre and Income Tax Officer Ward-1 and TPS, Aayakar Bhavan

WP/5954/2023

AI Insights

The case involves a writ petition filed by Kadadharvalli Bharatharaju Keerthan against the Union of India and various officials of the Income Tax Department. The petitioner challenged the assessment order, computation sheet, and demand notice issued under Sections 147, 144B, and 156 of the Income Tax Act, 1961, respectively. The primary contention was that the petitioner's reply to the assessment notice, dated 06.03.2023, was not substantively considered, despite being referenced in the assessment order. The court found merit in the petitioner's argument and remitted the matter back to the assessing officer for reconsideration of the mentioned reply.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 702472 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 21-06-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP; MADANAN PILLAI
• Assessee Lawyers: RAJEEV NULVI
• Keywords: Assessment Order; Income Tax; Non-consideration of reply; Reassessment
• Section: 147; 144B; 156; 226; 227

Judgement Text

" - 1 - NC: 2023:KHC:21441 WP No. 5954 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF JUNE, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 5954 OF 2023 (T-IT) BETWEEN: 1. KADADHARVALLI BHARATHARAJU KEERTHAN S/O BHARATHARAJU, AGE 32 YEARS, RESIDING AT: KADADHARAVALLI , SIGE, HASSAN, KARNATAKA-573 201. … PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI., ADVOCATE) AND: 1. THE UNION OF INDIA REPRESENTED BY ITS JOINT SECRETARY, MINISTRY OF FINANCE AND DEPARTMENT OF REVENUE, (INCOME TAX DEPARTMENT) ROOM NO.46, NORTH BLOCK, NEW DELHI, DELHI-110 001. 2. THE DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, ASSESSMENT UNIT, INCOME TAX DEPARTMENT NORTH BLOCK, Digitally signed by B K MAHENDRAKUMAR Location: High Court of Karnataka - 2 - NC: 2023:KHC:21441 WP No. 5954 of 2023 NEW DELHI, DELHI-110 001. 3. THE DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER THE NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI, DELHI-110 001. 4. INCOME TAX OFFICER WARD-1 AND TPS, AAYAKAR BHAVAN, 2ND STAGE, BELUR ROAD, HASSAN KARNATAKA-573 201. … RESPONDENTS (BY SRI. SRI M. DILIP, ADVOCATE FOR R2 TO R4; SRI MADANAN R. PILLAI, CGC FOR R1) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE ASSESSMENT ORDER U/S 147 READ WITH SECTION 144B OF THE INCOME TAX ACT, 1961 VIDE DIN NO.ITBA/AST/S/147/2022-23/1050577269(1) DTD 10.03.2023 ALONG WITH COMPUTATION SHEET VIDE DIN NO.ITBA/AST/S/114/2022-23/1050577318(1) DTD 10.03.2023 AND DEMAND NOTICE U/S 156 OF THE INCOME TAX ACT, 1961 VIDE DIN NO.ITBA/AST/S/156/2022-23/1050577327(1) DTD 10.03.2023 PASSED BY THE R-2 AUTHORITY PERTAINING TO ASSESSMENT YEAR 2015-16 VIDE ANNEXURES - A, A-1, A-2, RESPECTIVELY AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2023:KHC:21441 WP No. 5954 of 2023 ORDER Petitioner has challenged the assessment order under Section 147 read with Section 144B of the Income Tax Act as also computation sheet and demand notice under Section 156 of the Act pertaining to the assessment year 2015-16 as per Annexures-A, A1 and A2 respectivly. 2. It is the contention of the petitioner that the petitioner's reply dated 06.03.2023 has not been considered though the assessment order makes a reference to it in Paragraph No.6.2. It is submitted that the reference to the reply dated 06.03.2023 without considering the contents of such reply does not amount to consideration at all. Accordingly, he submits that the matter requires to be reconsidered by the assessment authority. 3. The department is unable to controvert such contention relating to non-consideration of the reply dated 06.03.2023 substantively. - 4 - NC: 2023:KHC:21441 WP No. 5954 of 2023 4. Accordingly, on the sole ground that the contents of the reply dated 06.03.2023 is to be reconsidered by the assessing officer before proceeding further, petition is required to be disposed off. The matter is remitted to the stage post final show cause notice dated 16.02.2023. The concerned authorities to take note of the reply dated 06.03.2023 and proceed further. Needless to state that the material in the form of evidence relied upon in the reply dated 06.03.2023 to be taken note of appropriately. 5. Accordingly, petition is disposed off. Sd/- JUDGE VP "