M/S MANIPAL EDUCATION AND MEDICAL GROUP INDIA PVT LTD., V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP/8814/2023

AI Insights

The case involves M/s Manipal Education and Medical Group India Pvt Ltd, which filed a writ petition against several orders and notices issued by the Income Tax authorities concerning a special audit and subsequent reassessments under the Income Tax Act, 1961. The petitioner challenged the legality of these actions, citing violations of natural justice. During the proceedings, the respondents agreed to remand the matter for fresh adjudication from a specific stage, which the petitioner consented to. The court's decision to set aside the impugned orders and notices was based on the need for a fair hearing and proper consideration of the petitioner's submissions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 752637 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 31-05-2023
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M VENKATARAMAN; K V ARAVIND; M DILIP
• Assessee Lawyers: ABHISHEK MANU SINGHVI; AJAY VOHRA; S K TULRISJAN; S SHARATH; MEGHA MEHTA
• Keywords: Income Tax; Natural Justice; Reassessment; Special Audit; Writ petition
• Section: 148; 142(2A); 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - WP No. 8814 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF MAY, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 8814 OF 2023 (T-IT) BETWEEN: 1. M/S MANIPAL EDUCATION AND MEDICAL GROUP INDIA PVT LTD., 24/1, 15 FLOOR, J W MARRIOTT BANGALORE NORTH, BENGALURU-560 001. (REPRESENTED BY ITS DIRECTOR SRI. NISITH KUMAR MOHANTY AGED ABOUT 60 YEARS, S/O SRI. MOHANTY) INCORPORATED UNDER COMPANIES ACT-1956 … PETITIONER (BY DR. ABHISHEK MANU SINGHAVI A/W SRI AJAY VOHRA, SENIOR ADVOCATE, SRI S.K. TULRISJAN, ADVOCATE, SRI S. SHARATH, ADVOCATE AND SMT. MEGHA MEHTA, ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 4(1)(2) ROOM NO.230, 2ND FLOOR BMTC DEPOT BUILDING, 80FT. ROAD 6TH BLOCK, KORMANGALA BENGALURU-560 095. Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - WP No. 8814 of 2023 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4(1)(1) BMTC BUILDING, 80FT. ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE, KORMANGALA BENGALURU-560 095. 3. THE ADDITIONAL /JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER NATIONAL FECELESS ASSESSMENT CENTRE (REPRESENTED BY THE PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU-2) BMTC BUILDING, 80FT ROAD, 6TH BLOCK, KORAMANGALA BENGALURU-560 095. 4. THE PRINCIPAL COMMISSIONER OF INCOME TAX BENGALURU-2 BMTC BUILDING, 80FT ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA BENGALURU-560 095. … RESPONDENTS (BY SRI. M. VENKATARAMAN, ASG A/W SRI K.V. ARAVIND, ADVOCATE AND SRI M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE, THE IMPUGNED PASSED BY THE R-4 FOR CONDUCT OF SPECIAL AUDIT UNDER SEC 142(2A) OF THE INCOME-TAX ACT, 1961 DTD 30/03/2023 VIZ NO. ITBA/COM/F/17/2022-23/1051646652(1) ENCLOSED AS ANNEXURE-U AND ETC. - 3 - WP No. 8814 of 2023 THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Petitioner has filed the present writ petition seeking for the following reliefs: \"(a) Quash as far as the petitioner is concerned by an appropriate writ or order in the nature of certiorari or otherwise the impugned order passed by the respondent No.4 for conduct of special audit under Section 142(2A) of the Income Act, 1961 dated 30.03.2023 viz., No.ITBA/COM/F/17/2022-23/1051646651(1) ENCLOSED AT Annexure -U; (b) Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise, the impugned notice under section 142(2A), dated 21.03.2023, viz No. ITBA/ COM/F/17/2022-23/1051072444(1) passed by the Respondent No. 4, enclosed as Annexure Q; - 4 - WP No. 8814 of 2023 (C) Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise, the impugned notice issued under section 148A(b) of the Income-tax Act, 1961 by the Respondent No. 2, dated 22.03.2022, viz No. ITBA/AST/F/148A(SCN)/2021-22/ 1041210068(1) for proposing reassessment in the case of Petitioner enclosed as Annexure D; (D) Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise, the impugned order passed by the Respondent No. 2 under section 148A(d) of the Income- tax Act, 1961, dated 31.03.2022, viz No. ITBA/AST/F/148A/2021-22/1042382145(1) proposing reassessment and issuance of notice under Section 148 of the Act in the case of Petitioner enclosed as Annexure K; (E) Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise, the impugned notice issued under section 148 of the Income-tax Act, 1961 by the Respondent - 5 - WP No. 8814 of 2023 No. 2, dated 31.03.2022, VIZ No. ITBA/AST/S/148_1/2021-22/1042385475(1) for reassessment in the case of Petitioner enclosed as Annexure K1; (F) Quash as far as the petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise, the impugned notice issued under Section 144BA(1) of the Income Tax, 1961 by the respondent No.2 dated 24.03.2023 viz., No. ITBA/AST/F/17/2022-23/1051272093(1) for invocation of Chapter X-A of the Income Tax Act, 1961, in the case of petitioner enclosed as Annexure-W.\" 2. During the hearing on 25.05.2023, the learned ASG appearing for the Revenue submitted that the respondents would have no objection to have the matter remanded to the stage prior to issuance of a reassessment notice under Section 148 of the Income Tax Act, 1961 (the 'Act') for fresh adjudication from Section 148A(b) stage, in light of violation of principles of natural justice. - 6 - WP No. 8814 of 2023 3. Petitioner consents to the above proposal. 4. In light of the above, the following order is passed: ORDER a. The impugned order dated 31.03.2022 passed under Section 148A(d) of the Act and the impugned notice dated 31.03.2022 issued under Section 148 of the Act is hereby set aside. b. All actions initiated pursuant to the above under Section 142(2A), Section 144BA(1) and Section 144BA(2) of the Act, being consequential, impugned notice dated 21.03.2023 and order dated 30.03.2023; notice dated 24.03.2023 and notice dated 26.04.2023 bearing Nos. ITBA/COM/F/17/2023-24/1052370469(1) and No. ITBA/COM/F/17/2023-24/1052350581(1) are consequentially quashed. - 7 - WP No. 8814 of 2023 c. The matter is hereby remanded back to the Assessing Officer to hear the matter afresh from the Section 148A(b) stage initiated via impugned notice dated 22.03.2022. d. The petitioner / Assessee is granted 30 days from the date of this order to file its reply along with documents as regards the notice dated 22.03.2022 under Section 148A(b). e. After considering the petitioner's reply to impugned notice dated 22.03.2022 issued under Section 148A(b) of the Act, the department shall consider afresh keeping open the contentions of both parties and decide petitioner's reply to impugned notice dated 22.03.2022 issued under Section 148A(b) of the Act. f. Thereafter, a fresh order under Section 148A(d) of the Act may be passed by the Assessing Officer - 8 - WP No. 8814 of 2023 expeditiously after considering the petitioner's reply in accordance with law. g. All rights of the petitioner/assessee under law shall remain available to it in respect of the aforesaid order. All contentions of both the parties are kept open. Writ petition is disposed off accordingly. All pending I.As. are disposed off as not calling for any adjudication in light of the disposal of the matter. Sd/- JUDGE VP "