M E ELECTRICALS V. THE PRINCIPAL COMMISSIONER

WP/10233/2020

AI Insights

The case involves M.E. Electricals, represented by its director Sri Gangadhara S, who filed a writ petition against the Principal Commissioner of Income Tax Bengaluru-4 and others, challenging an assessment order for the year 2017-18. The petitioner contended that the order was passed without a personal hearing, violating the principles of natural justice. The respondents argued that the petition lacked merit. The court, acknowledging the absence of a personal hearing, set aside the assessment order and remitted the case for a fresh assessment following due process.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 691443 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-12-2021
• Assessment Year: misc
• Laws Referred To: Article 226 & 227 of the Constitution of India, Section 143(3) of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: K MALHAR RAO; JINITHA CHATTERJEE
• Keywords: Assessment Order; Impugned order; Natural Justice; Personal hearing; Quash
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF DECEMBER, 2021 BEFORE THE HON’BLE MR.JUSTICE S.R.KRISHNA KUMAR W.P.NO.10233 OF 2020 (T - IT) BETWEEN: M.E. ELECTRICALS NO.68 & 90E, 3RD BLOCK 1ST STAGE, NAGARBHAVI BENGALURU - 560 072; REP. BY ITS DIRECTOR SRI GANGADHARA S (PAN NO:AAHCM8658G) ... PETITIONER (BY SRI.K MALHAR RAO & SMT. JINITHA CHATTERJEE, ADVOCATES) AND: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX BENGALURU-4 5TH FLOOR, BMTC BUILDING 80 FEET ROAD 6TH BLOCK, KORAMANGALA BENGALURU- 560 095. 2 THE JOINT COMMISSIONER OF INCOME TAX (OSD) CIRCLE 4(1)(3), WARD-4 BENGALURU. 3 THE INCOME TAX OFFICER, WARD-4(1)(3) 5TH FLOOR, BMTC BUILDING 80 FEET ROAD 6TH BLOCK, KORAMANGALA BENGALURU-560 095. ... RESPONDENTS (BY SRI.K.V. ARAVIND, ADVOCATE) ----- 2 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER DATED 27.12.2019 PASSED BY THE R-3 PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT FOR THE ASSESSMENT YEAR 2017-18 VIDE ANNEXURE- B. THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING : ORDER In this petition, the petitioner seeks quashing of the impugned order at Annexure-B dated 27.12.2019 and for other reliefs. 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the documents produced by the petitioner, learned counsel for the petitioner invites my attention to the impugned assessment order in order to point out that the petitioner was not granted an opportunity of personal hearing in the matter before passing the impugned order, which is violative of principles of natural justice. It is also submitted that if the respondents had granted an 3 opportunity of personal hearing to the petitioner, the petitioner would have produced additional documents and filed additional objections before the respondents in this regard. It is therefore, contended that the impugned assessment order at Annexure-B deserves to be quashed. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 5. Though several contentions have been urged by both sides in respect of their respective claim, having regard to the undisputed fact that no personal hearing was given/granted in favour of the petitioner prior to passing the impugned order, without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and proper to set aside the impugned order and remit the matter back to the respondent No.3 for re-consideration afresh in accordance with law by giving personal hearing to the petitioner and after providing one more opportunity to the petitioner to produce additional documents and to file 4 additional objections if any, and thereafter to proceed and conclude the proceedings in accordance with law. 6. In the result, I pass the following order: a) Petition is hereby allowed. b) The impugned assessment order dated 27.12.2019 passed by respondent No.3 vide Annexure-B is hereby set aside. c) Matter is remitted back to concerned respondent for re-consideration afresh in accordance with law after giving personal hearing to the petitioner and providing opportunity to the petitioner to produce the additional documents and to file additional objections in support of its claim pursuant to which the respondent shall conclude the proceedings in accordance with law. SD/- JUDGE nms "