M/S MPRIME PREMISES PVT LTD V. ASSISTANT COMMISSIONER OF INCOME TAX

WP/4301/2018

AI Insights

The case involves two writ petitions filed by M/s. MPRIME Premises Pvt Ltd and M/s. Milestone Plot Developers Pvt Ltd against the assessment orders issued by the Income Tax Department for the assessment year 2015-16. The petitions challenged the orders on the grounds that they were passed without considering the explanations provided by the petitioners in response to the notices. The respondents defended the orders, asserting their validity. However, the court found that the orders were issued without proper consideration of the petitioners' responses, leading to a decision in favor of the petitioners.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 697397 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 28-01-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Articles 226 & 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: SWATHI ASHOK; ANURADHA
• Keywords: Assessment Order; Income Tax; Natural Justice; Non application of mind; Writ petition
• Section: 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JANUARY, 2020 BEFORE THE HON’BLE MR. JUSTICE KRISHNA S.DIXIT WRIT PETITION NO.4301 OF 2018 (T-IT) C/W WRIT PETITION NO.4302 OF 2018 (T-IT) IN W.P. NO. 4301/2018: BETWEEN: M/S. MPRIME PREMISES PVT LTD., NO.103, EDEN PARK NO.20, VITTALMALLYA ROAD BENGALURU - 560 001. REPRESENTED BY ITS DIRECTOR ... PETITIONER (BY MS. SWATHI ASHOK & SMT. ANURADHA S.R., ADVOCATES) AND: 1 . ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 4(1)(2) BENGALURU - 560 001. 2 . GOVERNMENT OF INDIA, MINISTRY OF FINANCE INCOME TAX DEPARTMENT, 7TH FLOOR, INCOME TAX OFFICE, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 001. ... RESPONDENTS (BY SRI. K.V.ARAVIND, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY THE R-1 DTD 22.12.2017 FOR THE ASSESSMENT YEAR 2015-16 VIDE ANNEXURE-A; AND ETC. 2 IN W.P.NO.4302 OF 2018 BETWEEN: M/S. MILESTONE PLOT DEVELOPERS PVT. LTD., NO.103, EDEN PARK NO.20, VITTAL MALLYA ROAD, BENGALURU - 560 001, REPRESENTED BY ITS DIRECTOR. ... PETITIONER (BY MS. SWATHI ASHOK & SMT. ANURADHA S.R., ADVOCATES) AND: 1 . DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3 (1) (1), BENGALURU - 560 001. 2 . GOVERNMENT OF INDIA MINISTRY OF FINANCE, INCOME TAX DEPARTMENT, 7TH FLOOR, INCOME TAX OFFICE, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 001. ... RESPONDENTS (BY SRI. K.V.ARAVIND, ADVOCATE FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY THE R-1 DTD: 22.12.2017 FOR THE ASSESSMENT YEAR 2015-16 [ANNEXURE-P]; AND ETC., THESE WRIT PETITIONS ARE COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUPM, THIS DAY, THE COURT MADE THE FOLLOWING: 3 ORDER Petitioner-Company being the assessee under the Income Tax Act, 1961 is invoking the writ jurisdiction of this Court grieving against the Assessment Order dated 22.12.2017, a copy whereof is at Annexure-A covering the assessment year 2015-16 and the consequent Notice dated 22.12.2017, a copy whereof is at Annexure-B, both issued by the first respondent. 2. After service of notice, the respondents having entered appearance through their Senior Panel Counsel Sri. K.V.Aravind, resist the writ petitions making submission in justification of impugned order and the notice. 3. Having heard the learned counsel for the parties and having perused the petition papers, this Court is of a considered opinion that, reprieve needs to be granted to the petitioner as under and for the following reasons: a) the impugned order at Annexure-A proceeds on the wrong factual premise that the petitioner had not sent explanation to the notice in question when the original 4 records admittedly reveal that the petitioner had filed one vide Replies dated 20.12.2017, copies whereof is at Annexures-J & H; and, b) the contention that petitioner has an alternate remedy of statutory appeal and therefore, no relief can be granted in these writ petitions cannot be accepted since there is an apparent violation of principles of natural justice apart from demonstrable non-application of mind to the material borne out from the record. In the above circumstances, these writ petitions succeed; the Writ of Certiorari issues quashing the impugned orders; matter is remitted to the first respondent for consideration afresh after adverting to the reply sent by the petitioner, in accordance with law. The period for compliance is three months from the date a copy of this judgment is received by the first respondent. No costs, now. Sd/- JUDGE DS "