Mr. Yousuf Shariff V. Assistant Commissioner of Income Tax Central Circle 1(2), BLR and Assessment Unit represented by Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer, Income Tax Department, Ministry of Finance and National Faceless Appeal Centre represented by Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer, Income Tax Department, Ministry of Finance

WP/10637/2024

AI Insights

In this case, the petitioner, Mr. Yousuf Shariff, challenged an ex-parte assessment order and subsequent demand notice issued by the Assistant Commissioner of Income Tax for the assessment year 2022-23. The petitioner contended that his failure to respond to the notices was due to genuine health issues and the recent death of his brother, which prevented him from contesting the proceedings in a timely manner. The court, considering the circumstances presented by the petitioner, decided to set aside the impugned orders and remand the case for fresh consideration, emphasizing the need for justice and fair opportunity to be heard.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799811 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-04-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Demand notice; Ex-parte assessment order; Hospitalization; Ill health; Surgery; Untimely demise
• Section: 142(1)

Judgement Text

" - 1 - NC: 2024:KHC:15407 WP No. 10637 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF APRIL, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.10637 OF 2024 (T-IT) BETWEEN: MR. YOUSUF SHARIFF SON OF LATE DASTHAGIR SHARIFF AGED ABOUT 57 YEARS, RESIDING AT NO.13/1, KAVERIAPPA LAYOUT, MILLER TANK BUND ROAD, BENGALURU - 560 052 …PETITIONER (BY SRI. SYED KHAMRUDDIN, ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2), BLR BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA BENGALURU - 560 095. 2. ASSESSMENT UNIT REPRESENTED 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, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003 3. NATIONAL FACELESS APPEAL CENTRE REPRESENTED 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, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003 …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:15407 WP No. 10637 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE EX-PARTE ASSESSMENT ORDER DATED 09/03/2024 BEARING NO. ITBA/AST/S/144/2023-24/1062325636(1) ALONG WITH COMPUTATION SHEET BEARING NO.ITBA/AST/322/2023-24/1062325654(1) PASSED BY THE R-1 FOR THE ASSESSMENT YEAR 2022-23 (ANNEXURE-A AND A1) AND CONSEQUENTLY, DEMAND NOTICE DATED 09/03/2024 BEARING NO.ITBA/AST/S/156/2023-24/1062325652(1) ISSUED BY THE R1 (ANNEXURE-B) AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner seeks for the following reliefs:- “i) Quash the Ex-parte Assessment Order dated 09.03.2024 bearing No.ITBA/AST/S/144/2023- 24/1062325636(1) along with Computation sheet bearing No. ITBA/AST/S/1332/2023-24 11062325654(1) passed by the 1st Respondent for the Assessment Year 2022-23 (Annexure-A and A1) and consequently, Demand Notice dated 09.03.2024 bearing No. ITBA/AST/S/156/2023- 24/1062325652(1) issued by the 1st Respondent (Annexure- B). ii) Pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that the respondents issued notices to the petitioner on 16.11.2023 - 3 - NC: 2024:KHC:15407 WP No. 10637 of 2024 onwards seeking to initiate proceedings against him under Section 142 (1) of the Income Tax Act, 1961 and since the petitioner did not submit his reply to the said notices, the respondents proceeded to pass the impugned assessment order dated 09.03.2024 followed by the impugned demand notice dated 09.03.2024, which are assailed in the present petition. It is the specific contention of the petitioner that on account of his ill-health including hospitalization, surgery, etc., as well as the untimely demise of his brother, Syed Zubair Shariff on 20.11.2023, the petitioner could not submit his replies / responses along with documents, as a result of which, the respondents have proceeded to pass the impugned ex-parte assessment order, which deserves to be set aside and the matter remitted back to the 1st respondent for reconsideration afresh in accordance with law after providing an opportunity to the petitioner. 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. A perusal of the material on record will indicate that the petitioner did not submit his responses / replies to the notices including the Show Cause Notice issued by the respondents - 4 - NC: 2024:KHC:15407 WP No. 10637 of 2024 leading to the impugned ex-parte order being passed against the petitioner. In the light of the specific assertion on the part of the petitioner that his inability and omission to submit his responses / replies to the notices and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and on account of his ill-health including hospitalization, surgery, etc., as well as the untimely demise of his brother, Syed Zubair Shariff on 20.11.2023, by adopting a justice oriented approach and in order to provide an opportunity to the petitioner to submit his response / reply along with documents and contest the proceedings, I deem it just and appropriate to set aside the impugned order and demand notice and remit the matter back to the 1st respondent for reconsideration afresh in accordance with law. 6. In the result, I pass the following:- ORDER (i) The petition is hereby allowed. (ii) The impugned order / Computation Sheet at Annexure-A and A1 dated 09.03.2024 and impugned Notice at Annexure-B dated 09.03.2024 are hereby set aside. - 5 - NC: 2024:KHC:15407 WP No. 10637 of 2024 (iii) The matter is remitted back to the stage of the petitioner submitting reply to the notices issued by the 1st respondent. (iv) Liberty is reserved in favour of the petitioner to file responses, replies, pleadings, documents, etc., before the 1st respondent, who shall consider the same and pass appropriate orders in accordance with law. Sd/- JUDGE Srl. / SV "