Kanchee Co Sri Soundarya Silks V. Assessing Officer National Faceless Assessment Centre and Income Tax Officer Ward-2(2)(3) and Principal Commissioner of Income Tax-2

WP/13050/2022

AI Insights

The case involves Kanchee Co Sri Soundarya Silks, a partnership firm, which filed a writ petition against the assessment order and demand notice issued by the Income Tax authorities for the assessment year 2017-18. The petitioner contended that the show cause notice issued by the authorities did not provide the statutory 30 days required under Section 144C(2) of the Income Tax Act, 1961, but only one day, which was insufficient for a proper response. The court, acknowledging the procedural error, set aside the assessment order and demand notice, remanding the case for proper proceedings.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798817 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-07-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: ARAVIND CHAVAN
• Keywords: Assessment Order; Demand notice; Faceless assessment; Income Tax; Show cause notice; Writ petition
• Section: 147; 144; 144B; 156; 226; 144C(2); 227

Judgement Text

" - 1 - IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JULY 2022 BEFORE THE HON’BLE MR. JUSTICE M.I.ARUN WRIT PETITION No.13050 OF 2022 (T-IT) BETWEEN: KANCHEE CO SRI SOUNDARYA SILKS NO.252, GROUND, FIRST AND SECOND FLOORS, CHICKPET BENGALURU-560 053 REP. BY ITS PARTNER, SRI D.T.MOHAN REGISTERED PARTNERSHIP FIRM UNDER INDIAN PARTNERSHIP ACT ... PETITIONER (BY SRI.ARAVIND V. CHAVAN, ADV.) AND: 1 . ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE NO.412-413, IST FLOOR OPP METRO PILLAR NO.793, DWARKA MOR NEW DELHI-110 059 2 . INCOME TAX OFFICER WARD-2(2)(3), BMTC BUILDING 80 FEET ROAD, 6TH BLOCK KORAMANGALA, BENGLAURU-560 095 3 . PRINCIPAL COMMISSIONER OF INCOME TAX-2, BMTC BUILDING 80 FEET ROAD, 6TH BLOCK KORAMANGALA, BENGLAURU-560 095 ... RESPONDENTS (BY SRI.E.I. SANMATHI, ADV.) - 2 - THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED 29.03.2022 BEARING NO.ITBA/AST/S/147/2021-22/1041927239(1) ANNEXURE-C3 AND DEMAND NOTICE UNDER SECTION 156 OF THE IT ACT DATED 29.03.2022 BEARING NO.ITBA/AST/S/156/2021-22/10419237368(1) ANNEXURE- C4 FOR THE ASSESSMENT YEAR 2017-18 PASSED BY THE R1. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: O R D E R Aggrieved by the assessment order dated 29.03.2022 bearing DIN.No.ITBA/AST/S/147/2021-22/1041927239(1) vide Annexure – C3 to the writ petition passed under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 by the respondent No.1 and the consequential demand notice dated 29.03.2022 bearing DIN No.ITBA/AST/S/156/2021-22/1041927368(1) vide Annexure – C4 to the writ petition, the instant writ petition is filed. 2. The case of the petitioner is that the returns filed by the petitioner for the assessment year 2017-2018 was sought to be re-opened by the authorities. In this regard, a - 3 - show cause notice dated 27.03.2022 was issued to the petitioner and the petitioner was asked to give a necessary reply by 28.03.2022. It is contended that as per Section 144C (2) of the Income Tax Act, 1961, the assessee had to be given 30 days time to file its objections and accordingly, petitioner sought for time, but the same was rejected and the assessment order has been passed. 3. Learned counsel appearing for the revenue does not dispute the fact that as per the provisions of Section 144C (2) of the Income Tax Act, 1961, in the instant case, the authorities were required to grant 30 days time to the petitioner to show cause to the allegations made and only one day time has been granted in the instant case. 4. For the aforementioned reasons, without going into the merits of the case, on the short point that sufficient opportunity was not granted to the petitioner to show cause to the notice issued to it, the assessment order dated 29.03.2022 bearing DIN No.ITBA/AST/S/147/2021- 22/1041927239(1) vide Annexure – C3 and the consequential demand notice dated 29.03.2022 bearing DIN - 4 - No.ITBA/AST/S/156/2021-22/1041927368(1) vide Annexure – C4 are hereby set aside and the matter is remanded back to the respondent No.1 to reconsider the matter in the manner known to law after giving sufficient opportunity to the petitioner and take appropriate decision thereafter. The writ petition is disposed of accordingly. Sd/- JUDGE MH/- "