Primary Agricultural Credit Co-operative Society Ltd (Vyavasaya Seva Sahakari Sangha Ltd) V. Assessing Officer National Faceless Assessment Centre, New Delhi and Income Tax Officer Ward -1, Aayakar Bhavan, Court Road, Chikkamagalur

WP/13680/2022

AI Insights

The case involves the Primary Agricultural Credit Co-operative Society Ltd, represented by its CEO, Mr. U K Shivaprasad, challenging the re-assessment order and related notices issued by the National Faceless Assessment Centre and the Income Tax Officer, Chikkamagalur. The petitioner argued that the orders were passed in a hurried manner without proper service of the show cause notice and without adequate opportunity to respond, thus violating the principles of natural justice. The respondents contended that the petition lacked merit. The court found in favor of the petitioner, highlighting the procedural lapses in the issuance of the orders and notices.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 817236 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-08-2022
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: MAHESH UPPIN
• Keywords: Certiorari; Certiorari; Natural Justice; Penalty notice; Re-assessment order; Writ petition
• Section: ITBA/AST/S/147/2021-22/1041815819(1)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 18TH DAY OF AUGUST, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.13680 OF 2022 (T-IT) BETWEEN: PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD (VYAVASAYA SEVA SAHAKARI SANGHA LTD) GONIBEEDU VILLAGE AND POST, MUDIGERE TALUK, CHIKKAMAGALURU DISTRICT-577132 REPRESENTED BY ITS C.E.O MR U K SHIVAPRASAD, REGD. UNDER KCS ACT 1959 …PETITIONER (BY SRI. MAHESH R. UPPIN, ADVOCATE) AND: 1 . ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI-110002. 2 . INCOME TAX OFFICER WARD -1, AAYAKAR BHAVAN, COURT ROAD, CHIKKAMAGALURU-577101 …RESPONDENTS (BY SRI. E.I.SANMATHI, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE RE- ASSESSMENT ORDER DTD 28.03.2022 BEARING DIN NO.ITBA/AST/S/147/2021-22/1041815819(1) ISSUED BY THE R1 MARKED AS ANNEXURE-L AND ETC. THIS W.P. COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:- 2 ORDER In this petition, the petitioner has sought for the following reliefs: a) Quash the re-assessment order dated 28.03.2022 bearing DIN No.:ITBA/AST/S/147/2021- 22/1041815819(1) issued by the 1st respondent marked as Annexure “L” by issuing a writ in the nature of certiorari; b) Quash the Penalty Notice dated 28.03.2022 bearing PAN No.AAAAV8405F issued by the 1st respondent marked as Annexure “N” and the Notice dated 28.03.2022 bearing PAN No.AAAAV8405F issued by 1st respondent marked as Annexure “P” by issuing a writ in the nature of certiorari; and c) Grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice. 2. Heard learned counsel for the petitioner and learned counsel for the respondents 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 invites my attention to the Show Cause Notice at Annexure – K dated 26.03.2022 issued by the respondents 3 in order to contend that apart from the fact that the said Show Cause Notice was not served upon the petitioner nor uploaded on the website / portal of the respondents, without providing sufficient or reasonable opportunity to the petitioner to submit its response and documents, the respondents have proceeded to pass the impugned order within a period of two days i.e., on 28.03.2022 in a hurried manner and consequently, the impugned assessment order at Annexure – L dated 28.03.2022 and consequential notices at Annexures – M, N and P all dated 28.03.2022 are illegal, arbitrary and vitiated in addition to being violative of principles of natural justice and the same deserve to be quashed. It is also submitted that the petitioner intends to avail the opportunity of personal hearing in the matter and requests this Court to issue necessary directions in this regard. 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. 4 5. As rightly contented by the learned counsel for the petitioner, that the impugned order dated 28.03.2022 passed by the respondents is clearly illegal, arbitrary and vitiated apart from being violative of principles of natural justice inasmuch as the same was passed without providing reasonable or sufficient opportunity to the petitioner to submit its reply and documents and consequently, though several contentions have been urged by both sides in support of their respective claims, without expressing any opinion on the merits / demerits of the rival contentions, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned assessment order at Annexure – L dated 28.03.2022, Penalty Notice at Annexure – N and Notice at 5 Annexure – P all dated 28.03.2022 are hereby quashed. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh after providing sufficient and reasonable opportunity to the petitioner to furnish its reply, documents, etc., and to consider the same and also provide an opportunity of personal hearing to the petitioner and to proceed further and pass appropriate orders in accordance with law. Sd/- JUDGE SV "