Palaiah Pappanna V. Additional/Joint/Deputy/Assistant Commissioner of Income Tax

WP/16266/2022

AI Insights

The case involves a writ petition filed by Palaiah Pappanna against the Additional/Joint/Deputy/Assistant Commissioner of Income Tax, challenging an ex parte assessment order under Section 147 read with Section 144B of the Income Tax Act, 1961. The petitioner argued that he was unable to submit the required documents and response due to bona fide reasons and unavoidable circumstances, which led to the issuance of a show-cause notice with insufficient time for compliance. The court found that the impugned order violated the principles of natural justice and thus set it aside, remitting the case back for fresh consideration.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 810964 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 10-11-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: MRINALINI RAMAMURTHY
• Keywords: Assessment Order; Faceless assessment; Natural Justice; Writ of Certiorari
• Section: 147; 142(1); 144B; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 10TH DAY OF NOVEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.16266 OF 2022 (T-IT) BETWEEN: PALAIAH PAPANNA S/O PALAIAH AGED ABOUT 54 YEARS DSP DAR O/O DAR POLICE HEAD QUARTER NEAR MAJESTIC CIRCLE CHITRADURGA – 577 501. ...PETITIONER (BY MISS. MRINALINI RAMAMURTHY FOR SRI. RAMA MURTHY.R., ADVOCATES) AND: ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE DELHI – 110 001. …RESPONDENT (BY SRI. K.V.ARAVIND., ADVOCATE ) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF ASSESSMENT DATED: 28.03.2022 PASSED U/S 147 R.W.S. 144B OF ACT (ANNEXURE-E) NO. ITBA/AST/S/156/2021- 22/1041780688(1) TO THIS WRIT PETITION IN THE INTEREST OF JUSTICE AND DIRECT THE RESPONDENT TO GRANT AN OPPORTUNITY ENABLING THE PETITIONER TO SUBMIT THE DETAILS AS EXPLAINED IN THIS WRIT PETITION. THIS W.P. COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:- 2 ORDER In this petition, petitioner has sought for the following reliefs: a) The petitioner humbly pray that this Hon’ble Court may be pleased to issue a writ of certiorari or in the nature of writ of certiorari quashing the order of assessment dated 28.03.2022 passed under Section 147 r.w.s. 144B of Act (Annexure – E) No.ITBA/AST/S/156/2021-22/1041780688(1) to this writ petition in the interest of justice and direct the respondent to grant an opportunity enabling the petitioner to submit the details as explained in this writ petition; b) This Hon’ble Court may be pleased to issue such other writ or writs as this Hon’ble Court deem it fit in the petitioner’s case in the interest of justice. 2. Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that pursuant to notice dated 05.02.2022 issued by the respondent under Section 142(1) of the 3 Income Tax Act, 1961, the petitioner made several attempts to collate and collect documents for the purpose of furnishing the same to the respondent along with his reply. However, on account of his inability to do so, the respondent issued a show-cause notice dated 23.03.2022 to the petitioner granting only two days time to file his reply and since the petitioner did not do so, respondent proceeded to pass the impugned assessment order dated 28.03.2022, aggrieved by which the petitioner is before this Court by way of the present petition. It is further submitted that the inability and omission on the part of the petitioner to submit his reply along with documents was due to bonafide reasons, unavoidable circumstances and sufficient cause and the impugned order being violative of principles of natural justice, the same deserves to be set aside and the matter be remitted back to the respondent for reconsideration afresh after providing one more opportunity to the petitioner to submit his response along with documents. 4 4. Per contra, learned counsel for the respondent 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 including the impugned assessment order will indicate that the same is an exparte assessment order, which has been passed without the petitioner submitting his response/reply and/or documents to the notices issued by the respondents and without the petitioner participating in the proceedings. Under these circumstances, in view of the specific assertion on the part of the petitioner that the inability and omission on the part of the petitioner to submit his reply along with documents was due to bonafide reasons, unavoidable circumstances and sufficient cause and the impugned order being violative of principles of natural justice, I am of the considered opinion that by adopting a justice oriented approach, the impugned assessment order deserves to be set aside and the matter be remitted back to the respondent for reconsideration afresh after providing one more opportunity to the petitioner to submit his 5 response along with documents, which shall be considered by the respondents in accordance with law. 6. In the result, I pass the following: ORDER (i) Petition is hereby allowed. (ii) The impugned Assessment Order at Annexure-E dated 28.03.2022 is hereby set aside. (iii) The matter is remitted back to the respondent for reconsideration from the stage of Section 142(1) of the Income Tax Act, 1961, in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit reply along with documents to the notice dated 05.02.2022 issued by the respondent under Section 142(1) of the Income Tax Act, 1961. (v) Respondent is directed to continue the proceedings from the stage of Section 142(1) of the Income Tax Act, 1961 and proceed further and pass appropriate orders in accordance with law. Sd/- JUDGE SV/Bmc "