Kyalalur Silk Reelers Industrial Co-operative Society Limited V. Assessment Unit Rep by Additional/Joint/Deputy/Assessment Commissioner of Income Tax/Income Tax Officer, National Faceless Assessment Centre and The Principal Chief Commissioner of Income Tax, Karnataka and Goa and The Income Tax Officer Ward 1, Kolar

WP/9810/2024

AI Insights

The case involves Kyalalur Silk Reelers Industrial Co-operative Society Limited, which filed a writ petition against various income tax authorities challenging the assessment order and related notices for the assessment year 2016-17. The petitioner argued that the assessing authority failed to consider crucial financial records and discrepancies in the recovery challans. The court found merit in the petitioner's contention that not all documents were adequately considered and granted an additional opportunity for the petitioner to present further evidence.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 806076 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-06-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: MUDRABETTU VENKATESH
• Keywords: Assessment Order; Faceless assessment; Income Tax; Penalty notice; Quashing; Show cause notice
• Section: 147; 148; 144B; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:21699 WP No. 9810 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 9810 OF 2024 (T-IT) BETWEEN: KYALANUR SILK REELERS INDUSTRIAL CO OPERATIVE SOCIETY LIMITED A CO OPERATIVE SOCIETY REGISTERED UNDER MYSORE CO OPERATIVE SOCIETIES ACT 1959, REPRESENTED BY ITS PRESIDENT SRI SHAIK MOHAMOOD S/O SRI ABDUL GAFFAR AGED ABOUT 67 YEARS KYALANUR VILLAGE POST KOLAR TALUK, KOLAR - 563 102. …PETITIONER (BY SRI MUDRABETTU CHAITANYA VENKATESH, ADV.) AND: 1. ASSESSMENT UNIT REP BY ADDITIONAL / JOINT / DEPUTY / ASSESSMENT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO 401, 2ND FLOOR E RAMP, JAWAHARALAL NEHRU STADIUM, DELHI - 110 003. 2. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KARNATAKA AND GOA CENTRAL REVENUE BUILDING QUEENS ROAD, BANGALORE - 560 001. 3. THE INCOME TAX OFFICER WARD 1, KOLAR IT OFFICE KOLAR Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:21699 WP No. 9810 of 2024 NEW EXTENSION KOLAR KOLAR - 563 101. …RESPONDENTS (BY SRI M. DILIP, JR. STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ASSESSMENT ORDER PASSED BY THE R1 UNDER SECTION 147 R.W.S 144B OF THE ACT DTD 22.01.2024 BEARING DIN NO.ITBA/AST/S/147/ 2023.24/1059981182(1) FOR THE ASSESSMENT YEAR 2016.17 BY THE R1 HEREIN MARKED AS ANNEXURE-A1. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER 1. The present petition has been filed seeking for setting aside the Assessment Order passed by respondent No.1 under Section 147 read with Section 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) dated 22.01.2024 for the Assessment Year 2016-17 at Annexure-A1. Petitioner also have sought for quashing the computation sheet dated 22.01.2024 issued by respondent No.1 at Annexure-A2, Notice of Demand at Annexure-A3, Show Cause Notice for penalty at Annexures - A4, A5 and A6, Notice under Section 148 of the Act under Annexure-B1, Notice under Section 148A(b) of the Act under Annexure-B2 and order under Section 148A(d) of the Act at Annexure-B3. - 3 - NC: 2024:KHC:21699 WP No. 9810 of 2024 2. Amongst the several contentions advanced, learned counsel for the petitioner draws attention to the Assessment Order and submits that the assessing authority has merely relied upon the balance sheet and profit and loss account as is reflected in the Assessment Order and has not taken note of the receipt and payment records produced before the Assessing Officer, a copy of which is produced at Annexure-C1 and C2. Further, it is submitted that the observations made relating to verification of copies of recovery challan have discrepancies and insofar as such aspect, counsel for the petitioner submits that the petitioner had made out a table at Annexure R1 to R3, pointing out to the challans which have defect while other challans produced which were in order have not been taken note of. It is submitted that if another opportunity is granted, necessary clarification will be made. 3. Though learned counsel for the revenue submits that sufficient opportunity has been granted, however, taking - 4 - NC: 2024:KHC:21699 WP No. 9810 of 2024 note of the contention made above and also taking note of the Assessment Order and the observations made, case is made out for granting another opportunity for the petitioner to substantiate their response to the Show Cause Notice dated 06.12.2023. 4. Petitioner is permitted to make an additional response apart from the response made on 21.12.2023 and produce such other documents as may be required to support his case. 5. Accordingly, the order at Annexure-A1 is set-aside as well as the computation sheet and demand notice at Annexure - A2 and A3. Consequentially, notice for penalty at Annexures - A4 to A6 are set-aside. 6. All other contentions are kept open. SD/- JUDGE DN "