Karnataka State Tourism Development Corporation Limited V. National E-Assessment Centre and The Deputy Commissioner of Income-Tax, Circle 4(1)(1)

WP/14675/2022

AI Insights

The case involves the Karnataka State Tourism Development Corporation Limited, represented by its General Manager-Finance, challenging the assessment order, computation sheet, and demand notice issued by the National E-Assessment Centre and the Deputy Commissioner of Income-Tax. The petitioner argued that the assessment order was passed without providing a reasonable opportunity to present all necessary documents and that it suffered from various legal infirmities, including lack of jurisdiction. The respondents contended that the petition lacked merit. The court found that the respondent did not properly consider all documents and materials provided by the petitioner, leading to an erroneous conclusion. Consequently, the court set aside the impugned documents and remitted the matter for fresh consideration.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798805 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-09-2022
• 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: ANNAMALAI
• Keywords: Assessment Order; Income Tax; Natural Justice; Writ of Certiorari
• Section: 143(3); 144B; 156

Judgement Text

"- 1 - IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF SEPTEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.14675 of 2022 (T-IT) BETWEEN: KARNATAKA STATE TOURISM DEVELOPMENT CORPORATION LIMITED ORIGINALLY COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 REP.BY ITS GENERAL MANAGER-FINANCE SMT. INDIRAMMA B G, WIFE OF SRI.NAGESH H G, AGED ABOUT 53 YEARS GROUND FLOOR, BMTC YESHWANTHPUR, TTMC BUS STAND YESHWANTHPUR CIRCLE BENGALURU-560 022 … PETITIONER (BY SRI.ANNAMALAI S., ADV.) AND: 1 . NATIONAL E-ASSESSMENT CENTRE REP. BY ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME-TAX/ INCOME-TAX OFFICER, INCOME-TAX DEPARTMENT, MINISTRY OF FINANCE ROOM NO.401, 2ND FLOOR, E-RAMP JAWARHALAL NEHRU STADIUM DELHI 110 003 2 . THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 4(1)(1) BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORMANGALA, BENGALURU-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 PASSED BY THE R-1 UNDER SECTION 143(3) READ WITH SECTION 144B OF THE INCOME TAX ACT 1961 VIDE DIN. ITBA/AST/S/143/(3)/2021-22/1032819738(1) DATED 7.5.2021 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE-A1 ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER In this petition, the petitioner has sought for the following reliefs: i) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the assessment order passed by the Respondent No.1 under section 143(3) read with section 144B of the Income-tax Act, 1961 vide DIN:ITBA/AST/S/143(3)/2021- 22/1032819738(1) dated 07.05.2021 for the assessment year 2018-19 herein marked as Annexure-A1. ii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Computation sheet passed by the Respondent No.1 for the assessment order passed under section 143(3) read with - 3 - section 144B of the Income-tax Act, 1961 vide DIN & Document No.ITBA/AST/S/186/2021-22/1032819778 (1) dated 07.05.2021 for the assessment year 2018-19 herein marked as Annexure- A2. iii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Notice of demand issued under section 156 of the Income-tax Act, 1961 vide DIN & Notice No.ITBA/AST/S/156/2021- 22/1032819787(1) dated 07.05.2021 for the assessment year 2018-19 for a sum of Rs.21,62,18,500/- herein marked as Annexure-A3. iv) 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 respondents and perused the material on record. 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, the learned counsel for the petitioner invites - 4 - my attention to the impugned assessment order at Annexure-A1 dated 07.05.2021 in order to contend that sufficient reasonable opportunity was not provided to the petitioner to produce all documents along with the reply and as such, the impugned order being violative of the principles of natural justice, the same deserves to be quashed on this ground alone. It is also pointed out that the impugned assessment order passed by respondent no.1 suffers from several other legal infirmities including lack of jurisdiction and consequently, the same deserves to be quashed on other grounds also. 4. Per contra, the learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 5. A perusal of the impugned assessment order at Annexure-A1 dated 07.05.2021 as well as the earlier show cause notice, replies etc. exchanged between the petitioner and respondent no.1 will clearly indicate - 5 - that respondent no.1 has not properly and correctly considered all the documents and material produced by the petitioner and this has resulted in erroneous conclusion. It is also relevant to state that in view of specific assertion on the part of the petitioner that, if one more opportunity is granted/provided in favour of the petitioner to produce additional documents and file additional pleadings, it would do so and if personal hearing is given in this regard, they would be able to substantiate the claim, without expressing any opinion on merits/demerits of the rival contentions and keeping the same open, I deem it appropriate to set aside the impugned assessment order at Annexure-A1 dated 07.05.2021 and the consequent computation sheet and demand notice issued by respondent no.1 and remit the matter back to respondent no.1 for reconsideration afresh in accordance with law. 6. In the result, I pass the following: - 6 - ORDER (i) The writ petition is hereby allowed; (ii) The impugned assessment order at Annexure-A1 dated 07.05.2021 is hereby set aside. Consequently, the impugned computation sheet and the notice at Annexures-A2 and A3 dated 07.05.2021 are also hereby set aside; (iii) The matter is remitted back to respondent no.1 for reconsideration afresh in accordance with law; (iv) Liberty is reserved in favour of the petitioner to file additional pleadings and produce additional documents in support of its defence. (v) All rival contentions are kept open and no opinion is expressed on the same. Sd/- JUDGE hkh. "