MSOURCE (INDIA) PRIVATE LIMITED V. ASSISTANT COMMISSIONER OF INCOME TAX

WP/22370/2024

AI Insights

The case involves MSOURCE (India) Private Limited, which filed a writ petition against the Assistant Commissioner of Income Tax and the Commissioner of Income Tax (Appeals) at the National Faceless Appeals Centre. The petitioner challenged an appellate order under section 250 of the IT Act for the assessment year 2016-17, claiming that the order was passed without sufficient opportunity to present their case, thus violating the principles of natural justice. The High Court found merit in the petitioner's argument and set aside the impugned order, remitting the matter back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747897 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 19-09-2024
• Assessment Year: misc
• Laws Referred To: Constitution of India, IT Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: PAI ANKUR DEEPAK
• Keywords: Assessment Order; Faceless Appeals; Income Tax; Natural Justice; Writ petition
• Section: 250; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:38862 WP No. 22370 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 22370 OF 2024 (T-IT) BETWEEN: MSOURCE (INDIA) PRIVATE LIMITED BAGMANE WORLD TECHNOLOGY CENTRE DODANEKUNDI OUTER RING ROAD, DODDANEKKUNDI B O BENGALURU NORTH BENGALURU - 560037 PAN NO AACCM 2097G A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 REP BY ITS MR ARJIT GANGULY S/O AMITAVA GANGULY AGED ABOUT 52 YEARS OCCUPATION SR VICE PRESIDENT AND GROUND HEAD TAXATION RESIDING AT BAGMANE TECHNOLOGY PARK LAUREL BUILDING C V RAMNA NAGAR BENGALURU – 560 003. …PETITIONER (BY SRI. PAI DHUNGAT ANKUR DEEPAK.,ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 4 (1) (1) BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA BENGALURU – 560 095. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:38862 WP No. 22370 of 2024 2. THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEALS CENTRE INCOME TAX DEPARTMENT MINISTRY OF FINANCE, GOVERNMENT OF INDIA NORTH BLOCK NEW DELHI - 110001 …RESPONDENTS (BY SRI. SUSHAL TIWARI, ADVOCATE) THIS W.P IS FILED ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH TEH FOLLOWING ANNEXURE-D -IMPUGNED APPELLATE ORDER DTD 22.04.2024 PASSED BY THE R-2 UNDER SECTION 250 OF THE IT ACT FOR THE AY 2016-17 IN DIN AND ORDER NO. ITBA/NFAC/S/250/2024- 25/1064247144(1) PASSED IN APPEAL NO. CIT(A), BENGALURU - 4/10263/2018-19. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: i. Issue a writ of certiorari or any other writ as the Hon'ble High Court may deem fit and quash the following: ANNEXURE 'D' Impugned appellate order dated 22.04.2024 passed by the Respondent No.2 under section 250 of the IT Act for the AY 2016-17 in DIN & Order No. ITBA/NFAC/ S/250/2024- 25/1064247144(1) passed in Appeal No. CIT (A), Bengaluru- 4/10263/ 2018-19. ii. Issue any other writ, order or direction to which the Petitioner is found entitled to in the present facts and circumstances. - 3 - NC: 2024:KHC:38862 WP No. 22370 of 2024 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 aggrieved by the assessment order dated 18.12.2018, the petitioner has filed an appeal before the Commissioner of Income Tax (Appeals) and when the same was pending adjudication, the appeals were transferred to the National Faceless Appeals Centre - respondent No.2. It is seen that without providing sufficient opportunity to the petitioner, respondent No.2 has proceeded to pass the impugned order, which is clearly violative of principles of natural justice warranting interference of this Court. 4. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned order dated 22.04.2024 at Annexure – D passed by respondent No.2 is hereby set aside. (iii) Matter is remitted back to respondent No.2 for reconsideration afresh in accordance with law. - 4 - NC: 2024:KHC:38862 WP No. 22370 of 2024 (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 2 Sl No.: 17 "