PRIMARY AGRICULTURAL CREDIT CO OPERATIVE V. UNION OF INDIA

WP/19779/2024

AI Insights

The case involves the Primary Agricultural Credit Co-operative Society Ltd (PACS), which filed a writ petition against various orders and notices issued by the Income Tax Department under different sections of the Income Tax Act, 1961. The petitioner contended that due to unavoidable circumstances, they could not respond to a show cause notice, leading to an exparte assessment order. The respondents supported the impugned orders, arguing there was no merit in the petition. The court, however, found the process followed by the respondent violated the principles of natural justice and thus quashed the orders, remitting the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 683287 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: THIRUMALESH M
• Assessee Lawyers: SAMEER GUPTA
• Keywords: Certiorari; Certiorari; Exparte assessment order; Natural Justice; Show cause notice
• Section: 147; 144; 144B; 271AAC(1); 272A(1)(d); 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:33321 WP No. 19779 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19779 OF 2024 (T-IT) BETWEEN: PRIMARY AGRICULTURAL CREDIT CO - OPERATIVE SOCIETY LTD (PACS) OFFICE AT SOMANAHALLI SOMANAHALLI POST, KADUR CHICKMAGALAUR - 577 138. KARNATAKA, INDIA. THROUGH ITS AUTHORISED REPRESENTATIVE MR. MARULASIDDAPPA S R SON OF MR. REVANNASIDDAPPA AGED ABOUT 39 YEARS RESIDENT OF: SOMANAHALLI SOMANAHALLI, CHIKMAGALUR KARNATAKA - 577 138. [REGISTERED UNDER KARANTAKA CO-OPERATIVE SOCIETY ACT, 1959]. …PETITIONER (BY SRI SAMEER GUPTA, ADVOCATE (VIDEO CONFERENCE)) AND: 1. UNION OF INDIA THROUGH ITS SECRETARY GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE NORTH BLOCK NEW DELHI - 110 001. Digitally signed by REKHA R Location: High Court of Karnataka - 2 - NC: 2024:KHC:33321 WP No. 19779 of 2024 2. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX BENGALURU-3, CENTRAL REVENUE BUILDING QUEENS ROAD, BENGALURU KARNATAKA - 560 001. 3. INCOME TAX OFFICER, WARD-1 CHIKMAGALUR, I.T. OFFICE COURT ROAD, CHICKMAGALUR KARNATAKA - 577 101. 4. NATIONAL FACELESS ASSESSMENT CENTRE 2ND FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM NEW DELHI - 110 003. REPRESENTED BY ITS AUTHORIZED OFFICER 5. ASSESSMENT UNIT INCOME TAX DEPARTMENT REGIONAL FACELESS ASSESSMENT CENTRE BENGALURU - 560 500. REPRESENTED BY ITS AUTHORIZED OFFICER. …RESPONDENTS (BY SRI THIRUMALESH M, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER BEARING No.DIN ITBA/AST/S/147/2023- 24/1059045822(1) DATED 26.12.2023 PASSED BY THE R-5 UNDER SECTION 147 READ WITH SECTION 144 AND 144B OF THE INCOME TAX ACT, 1961 (ANNEXURE-A) AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR - 3 - NC: 2024:KHC:33321 WP No. 19779 of 2024 ORAL ORDER In this petition, the petitioner seeks for the following reliefs: i. Issue a writ, order or direction in the nature of certiorari quashing the order bearing ITBA/AST/S/147/2023-24/1059045822 (1) No.DIN dated 26.12.2023 passed by the Respondent No.5 under Section 147 read with Section 144 and 144B of the Income Tax Act, 1961 (Annexure-A); ii. Issue a writ, order or direction in the nature of certiorari quashing the notice of demand bearing DIN ITBA/AST/S/156/2023-24/1059045884(1) dated 26.12.2023 issued by the Respondent No.5 under Section 156 of the Income Tax Act, 1961. (Annexure- B); iii. Issue a writ, order or direction in the nature of certiorari quashing order passed under Section 272A(1)(d) bearing DIN ITBA/PNL/F/272A(1)(d)/2024- 25/1064263570(1) dated 22.04.2024 issued by the Respondent No.5 (Annexure-C); iv. Issue a writ, order or direction in the nature of certiorari quashing demand notice bearing DINITBA/PNL/S/156/2024-25/1064259190(1) dated 22.04.2024 issued under Section 156 of the Income Tax Act, 1961 of the Income Tax Act, 1961 by the Respondent No.5; (Annexure-D); v. Issue a writ, order or direction in the nature of certiorari quashing Assessment Order dated 07.06.2024 bearing DIN ITBA/PNL/F/271AAC(1)/2024-25/1065480813(1) issued by the Respondent No.5 under Section 271AAC(1) of the Income Tax Act, 1961. (Annexure- Ε). - 4 - NC: 2024:KHC:33321 WP No. 19779 of 2024 vi. Issue a writ, order or direction in the nature of certiorari quashing demand notice bearing DIN ITBA/PNL/S/156/2024-25/1065480701(1) dated 07.06.2024 issued under Section 156 of the Income Tax Act, 1961 issued by the Respondent No.5. (Annexure- F). vii. Grant costs and interest; and viii. Grant such further and other reliefs as the nature and circumstances of the case may require. 2. 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 due to bonafide reasons, unavoidable circumstances and sufficient cause, petitioner could not submit his reply to the show cause notice at Annexure-N dated 11.12.2023 and as such, respondent proceeded to pass the exparte assessment order at Annexure-A, without providing sufficient opportunity to the petitioner, who is before this Court by way of the present petition. It is submitted that if one more opportunity is being provided, the petitioner would submit his reply to the show cause notice and respondent may be directed to proceed further on the merits in accordance with law. - 5 - NC: 2024:KHC:33321 WP No. 19779 of 2024 3. Per contra, learned counsel for the respondents would support the impugned order and submits that there is no merit in the appeal and the same is liable to be dismissed. 4. A perusal of the impugned order at Annexure-A, shows that the same is an exparte order pursuant to the petitioner not submitting any reply to the show cause notice dated 11.12.2023. 5. Under these circumstances, I am of the view that the impugned order being violative of the principles of natural justice, deserves to be set aside and the matter is remitted back to respondent No.5 for consideration afresh in accordance with law. 6. Accordingly, I pass the following: ORDER i) The Petition is hereby allowed. - 6 - NC: 2024:KHC:33321 WP No. 19779 of 2024 ii) Impugned notices/orders at Annexures-A, B, C, D, E and F are quashed. iii) Matter is remitted back to respondent No.5 for reconsideration afresh in accordance with law from the stage of petitioner submitting his reply to the Show Cause Notice dated 11.12.2023. iv) Liberty is reserved in favour of the petitioner to submit his reply/documents to the aforesaid notice, which shall be considered by respondent No.5, 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.: 1 Sl No.: 37 "