RAJATH B ESHWAR V. THE INCOME TAX OFFICER

WP/5583/2019

AI Insights

The case involves a writ petition filed by Rajatha B Eshwar against the Income Tax Officer, challenging the Assessment Order for the year 2013-14. The petitioner argued that her objections were not considered prior to the issuance of the Assessment Order, claiming a violation of the principles of natural justice. The respondent contended that the petitioner had an alternate remedy through the appeals process. The court referenced the Supreme Court's decision in GKN Driveshafts (India) Ltd. v. Income-Tax Officer, which established that the Assessing Officer must dispose of any objections by passing a speaking order before proceeding with the assessment. Agreeing with the petitioner, the court quashed the Assessment Order and remanded the case for fresh consideration.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 754831 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-02-2020
• Assessment Year: misc
• Other Referred Cases: GKN Driveshafts (India) Ltd. v. Income-Tax Officer
• Laws Referred To: Income Tax Act, 1961, Articles 226 & 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: G VENKATESH
• Keywords: Assessment Order; Income Tax; Jurisdiction; Natural Justice; Writ petition
• Section: 147; 148; 143(3)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF FEBRUARY, 2020 BEFORE THE HON’BLE MR. JUSTICE KRISHNA S.DIXIT WRIT PETITION NO.5583 OF 2019 (T-IT) BETWEEN: RAJATHA B ESHWAR, D/O H.S.ESHWAR, AGED ABOUT 31 YEARS, #1328, 6TH CROSS, 11TH MAIN ROAD, HAL III STAGE, BENGALURU – 560 075. ... PETITIONER (BY SRI. G.VENKATESH, ADVOCATE) AND: THE INCOME TAX OFFICER, WARD-4(2)(2), 3RD FLOOR, BMTC BUILDING, 80FT ROAD, 6TH BLOCK, KORAMANGALA, BENGALRURU – 560 095. ... RESPONDENT (BY SRI. K.V.ARAVIND, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE ISSUED IN I.T.N.S.34 UNDER SECTION 148 OF THE ACT BY THE RESPONDENT FOR THE ASSESSMENT YEAR 2013-14 VIDE ANNEXURE-A DTD 07.04.2016 (ERRONEOUSLY TYPED AS 07.04.2017) AS ONE WITHOUT JURISDICTION; AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: 2 ORDER Petitioner-Assessee has presented this writ petition for laying a challenge to the Assessment Order dated 29.12.2018, a copy whereof is at Annexure-B1 covering the Assessment Year 2013-14 made by the respondent under Section 143(3) r/w 147 of the Income Tax Act, 1961. Petitioner grieves that his Objections preceding the Assessment Order ought to have been considered by the respondent and this having not been done, there is a gross violation of principles of natural justice. 2. On request, learned Senior Panel Counsel Sri. K.V.Aravind having accepted notice for the respondent, opposes the writ petition inter alia contending that the petitioner has an alternate and equally efficacious remedy of appeal and therefore, he should be relegated to the same. 3. Having heard the learned counsel for the parties and having perused the petition papers, this Court is of a considered opinion that reprieve needs to be granted to the petitioner in view of settled position of law vide decision of the Apex Court in GKN DRIVESHAFTS (INDIA) LTD. V. INCOME- TAX OFFICER, (2003) 259 ITR 19 (SC) which states as under: 3 “… it was clarified that when a notice under section 148 is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notice. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons had been disclosed in the proceedings, the Assessing Officer had to dispose of the objections, if filed, by passing a speaking order, before proceeding with the assessment.” In the above circumstances, this writ petition succeeds; a Writ of Certiorari issues quashing the impugned Assessment Order & the consequential Demand Notice; matter is remitted to the respondent for consideration afresh from the stage of treating the Objections filed by the petitioner. Time for compliance is three months. All contentions of the parties are kept open. No costs. Sd/- JUDGE DS "