RAASI GREEN EARTH ENERGY V. ASSISTANT COMMISSIONER OF INCOME TAX

WP/20787/2021

AI Insights

In this case, Raasi Green Earth Energy One Private Limited filed a writ petition against the Assistant Commissioner of Income Tax, challenging the assessment order and demand notice issued on 23.04.2021. The petitioner argued that the respondent did not comply with the mandatory requirements of the Income Tax Act, 1961, particularly Section 144B(i)(xvi)b, which mandates the issuance of a draft assessment order and its furnishing to the taxpayer. The petitioner contended that despite submitting a reply to the notice under Section 142(1) of the Act, the respondent proceeded without providing an adequate opportunity to contest the assessment, thus violating the principles of natural justice. The respondent defended the validity of the assessment order and demand notice. The court, after considering the arguments and the lack of procedural compliance, decided in favor of the petitioner.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 754323 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-12-2021
• Assessment Year: misc
• Laws Referred To: Constitution of India, Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: SIRI RAJASHEKAR
• Keywords: Assessment Order; Demand notice; Income Tax; Natural Justice; Writ petition
• Section: 142(1); 156; 226; 227; 144B(i)(xvi)b

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 2ND DAY OF DECEMBER, 2021 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.20787 OF 2021 (T-IT) BETWEEN: RAASI GREEN EARTH ENERGY ONE PRIVATE LIMITED NO 817, 80 FEET ROAD 8TH BLOCK, KORAMANGALA BENGALURU 560 095 REP BY SANDEEP B.C. …PETITIONER (BY SMT. SIRI RAJASHEKAR, ADVOCATE FOR SRI D.R.RAVISHANKAR, ADVOCATE) AND: ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT NATIONAL E-ASSESSMENT CENTRE DELHI, MAYUR BHAVAN CONNUAUGHT LANE, BARAKHAMBA NEW 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 ASSESSMENT ORDER DATED 23.04.2021 PASSED BY THE RESPONDENT (ANNEXURE-D) AND ALSO CONSEQUENTIAL NOTICE OF DEMAND U/S 156 OF THE INCOME TAX ACT 1961 DATED 23.04.2021 VIDE ANNEXURE-E AND ETC. THIS W.P. COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:- 2 ORDER In this petition, petitioner seeks quashing of the impugned Assessment Order at Annexure – D dated 23.04.2021 and the consequential Demand Notice at Annexure – F dated 23.04.2021 and for other reliefs. 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 petition and referring to the documents produced by the petitioner, learned counsel for the petitioner submits that it is the grievance of the petitioner that despite the petitioner submitting a reply dated 08.02.2021 to the notice dated 18.01.2021 issued by respondent under Section 142(1) of the Income Tax Act, 1961 (for short, the said Act of 1961), the respondent has not complied with the mandatory requirement of issuing a draft assessment order and furnishing the same to the petitioner as mandatorily required under Section 144B(i) (xvi)b of the said Act of 1961 and consequently, the impugned Assessment Order at Annexure – D dated 23.04.2021 and the consequential Demand Notice at Annexure – E dated 23.04.2021 deserves to be quashed. It is further submitted that 3 no adequate or reasonable opportunity was granted to the petitioner before passing of the impugned assessment order, which is violative of principles of natural justice and deserves to be quashed. 4. Per contra, learned counsel for the respondent would support the impugned assessment order and demand notice and submits that there is no merit in the petition and the same is liable to be dismissed. 5. Though several contentions have been urged by the petitioner in support of his claim, having regard to the fact that no reasonable opportunity was granted to the petitioner including issuing and furnishing of the draft assessment order prior to passing of the impugned order, I deem it just and appropriate to set aside the impugned Assessment Order and Demand Notice and direct the respondent No.1 to reconsider the claim of the petitioner afresh and pass appropriate orders, in accordance with law and in terms of Section 144 B(i)(xvi)b of the said Act of 1961. 6. In the result, I pass the following: ORDER i) Petition is hereby allowed. 4 ii) The impugned Assessment Order at Annexure – D dated 23.04.2021 and the consequential Demand Notice at Annexure – F dated 23.04.2021 are set aside. iii) Matter is remitted back to respondent No.1 to reconsider the claim of the petitioner afresh in accordance with law. iv) Liberty is reserved in favour of the petitioner to furnish additional documents / objections / etc., before respondent No.1. SD/- JUDGE SV "