Karikyathanahalli Hanumanthe Gowda V. The Assessment Unit Income -Tax Department, National Faceless Assessment Centre

WP/10826/2024

AI Insights

The case involves Sri. Karikyathanahalli Hanumanthe Gowda, the proprietor of Maruthi Bar and Restaurant, who filed a writ petition against the Assessment Unit of the Income-Tax Department, National Faceless Assessment Centre, Delhi. The petitioner sought to quash the assessment order and demand notice for the assessment year 2022-23, arguing that the order was passed without giving adequate time to respond due to the ill health of his chartered accountant. The court found that the petitioner had a bona fide reason for the delay and thus set aside the assessment order, remitting the case for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 798676 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 04-09-2024
• Assessment Year: misc
• Laws Referred To: Karnataka Excise Act, 1965
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M
• Assessee Lawyers: S
• Keywords: Assessment Order; Chartered Accountant; Ill health; Show cause notice; Writ of Certiorari; Writ of Mandamus; Writ of prohibition
• Section: 143(3); 144B

Judgement Text

" - 1 - NC: 2024:KHC:36038 WP No. 10826 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No. 10826 OF 2024 (T-IT) BETWEEN: SRI. KARIKYATHANAHALLI HANUMANTHE GOWDA PROPRIETOR MARUTHI BAR AND RESTAURANT, NATURE OF BUSINESS: SALE OF INDIA LIQUOR (OTHER THAN ARRACK) KARNATAKA EXCISE ACT, 1965 AGED ABOUT 58 YEARS, SON OF SRI. GUNDAPPA BASAVE GOWDA RESIDING AT No. 460, 'MARUTHI NILAYA', 6TH MAIN VIJAYANAGARA, 1ST STAGE MYSORE - 570 017 PAN: AEWPG2702B. …PETITIONER (BY SRI S PARTHASARATHI, ADVOCATE) AND: THE ASSESSMENT UNIT INCOME -TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE DELHI -110 001. …RESPONDENT (BY SRI M THIRUMALESH, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED U/W 143(3) RWS 144B OF THE ACT DATED:20/03/2024 IN FILE No. ITBA/AST/S/143(3)/2023/2024/1062972871(1) ALONG WITH THE DEMAND NOTICE BY THE RESPONDENT FOR THE ASSESSMENT YEAR 2022-23 (ANNEXURE-F) AND ETC., Digitally signed by MADHURI S Location: High Court of Karnataka - 2 - NC: 2024:KHC:36038 WP No. 10826 of 2024 THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks for the following reliefs: \"a) Issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the assessment order passed u/s.143(3) rws 1448 of the Act dt. 20.03.2024 in File No.ITBA/AST/S/143(3)/2023- 24/1062972871(1) along with the demand notice by the Respondent for the assessment year 2022-23 (ANNEXURE-`F'); b) Issue a Writ of Prohibition or a direction in the nature of Writ of Prohibition restraining the Respondent from the recovery of the impugned demand raised vide assessment order passed u/s.143(3) read with section 144B of the Act dt.20.03.2024 in File No.ITBA/AST/S/143(3)/2023-24/1062972871(1) along with the demand notice by the Respondent for the assessment year 2022-23 (ANNEXURE-`F'); c) Issue a Writ of Mandamus or a direction in the nature of Writ of Mandamus directing the Respondent to provide a physical opportunity to the petitioner to furnish the books of accounts and other documents in accordance with the show cause notice and to determine a fair income.\" 2. Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record. 3. A perusal of the material on record will indicate that on 06.03.2024, respondent issued Show Cause Notice at Annexure-D - 3 - NC: 2024:KHC:36038 WP No. 10826 of 2024 in response to which the petitioner submitted an adjournment letter vide Annexure-E dated 14.03.2024 specifically contending that on account of the ill health of the chartered Accountant, it was not possible to submit a reply within stipulated period of five days as indicated in the aforesaid Show Cause Notice. It is the grievance of the petitioner that though such a request was made by the petitioner seeking time for seven days from 14.03.2024, the respondent has proceeded to pass the impugned assessment order dated 20.03.2024 along with the demand notice and computation sheet, which are assailed in the present petition. 4. Petitioner has also produced the medical certificate issued by Dr.N.Ravi Shankar so as to evidence the ill health of the chartered accountant by name H. N. Jnanesh, who was instructed to represent the petitioner in the instant proceedings. 5. Per contra, learned counsel for the respondents would support the impugned order and submit that there is no merit in the petition and the same is liable to be dismissed. 6. A perusal of the material on record will indicate that pursuant to Show Cause Notice dated 06.03.2024, the petitioner submitted reply dated 14.03.2024 specifically contending that the - 4 - NC: 2024:KHC:36038 WP No. 10826 of 2024 auditor was undergoing medical treatment and requested seven days time from 14.03.2024. The fact that the auditor was undergoing medical treatment stands established vide Annexure-G dated 30.03.2024 - Medical Certificate issued by the Doctor. 7. Under these circumstances, I am of the view that the inability and omission on the part of the petitioner to submit reply to the Show Cause Notice was due to bonafide, unavoidable circumstances and sufficient cause. Accordingly, by adopting justice oriented approach and in order to provide one more opportunity to the petitioner to submit reply to the Show Cause Notice along with documents, I deem it just and proper to set aside the impugned assessment order and remit the matter back to the respondent for reconsideration afresh in accordance with law to the stage of submitting reply to the Show Cause Notice and proceed further in accordance with law. 8. In the result, I pass the following: ORDER i) The petition is hereby allowed. - 5 - NC: 2024:KHC:36038 WP No. 10826 of 2024 ii) Impugned Assessment Order at Annexure-F dated 20.03.2024 is hereby set aside. iii) The matter is remitted back to respondents for reconsideration afresh in accordance with law to the stage of petitioner submitting reply to the Show Cause Notice at Annexure-D dated 06.03.2024. iv) The petitioner shall submit reply along with documents to the Show Cause Notice within a period of one month from today. v) Upon the petitioner submitting a reply/documents etc., the respondent shall provide sufficient and reasonable opportunity to the petitioner and grant personal hearing and proceed further in accordance with law. All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 8 "