Ravi Kumar Krishnamurthy V. The Additional/Joint/Deputy/Asst Commissioner of Income Tax/Income Tax Officer, National Faceless Assessment Center, Delhi and The Income Tax Officer, Ward-1, Kolar

WP/22789/2022

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The case involves Ravi Kumar Krishnamurthy, the proprietor of S.L.V Developers, who filed a writ petition against the orders of re-assessment and penalties imposed by the Income Tax Department. The petitioner challenged the ex-parte orders issued under various sections of the Income Tax Act, claiming that he was not given a reasonable opportunity to present his case due to genuine difficulties in collating necessary documents. The court, considering the petitioner's circumstances and the principles of natural justice, decided to quash the impugned orders and remand the case for a fresh assessment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 816103 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 08-12-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: R CHANDRASHEKAR
• Keywords: Ex parte order; Income Tax; Penalty; Re-assessment; Writ of Certiorari; National Faceless Assessment Center
• Section: 147; 148; 144; 142(1); 271B; 271F; 270A; 144B; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 8TH DAY OF DECEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R. KRISHNA KUMAR WRIT PETITION No.22789 OF 2022 (T- IT) BETWEEN: RAVI KUMAR KRISHNAMURTHY, S/O SRI. K.N. KRISHNAMURTHY AGED ABOUT 43 YEARS, PROP: S.L.V DEVELOPERS, NO. 345, KARAHALLI VILLAGE AND POST, BANGARPET – 563 162. …PETITIONER (BY SRI. R. CHANDRASHEKAR, ADVOCATE) AND: 1. THE ADDITIONAL /JOINT /DEPUTY / ASST COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTER, DELHI - 110 001. 2. THE INCOME TAX OFFICER, WARD-1, KOLAR – 563 101. …RESPONDENTS (BY SRI.M.DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE EXPARTE ORDER OF RE-ASSESSMENT DATED 29.03.2022 MADE U/S 147 R.W.S144 AND 144B ANNEXURE-D TO THIS WRIT PETITION ISSUED BY R1 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. 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 ex-parte order of re-assessment dated 29.03.2022 made u/s. 147 r.w.s. 144 and 144B (Annexure-D) to this Writ Petition in the interest of justice; issued by 1st Respondent in No.ITBA/AST/S/147/2021- 22/10419518866(1). B. 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 exparte order of penalty dated 19.09.2022 made u/s. 270A of the Act (Annexure-E) to this Writ Petition in the interest of justice; issued by 2nd Respondent in No.ITBA/PNL/F/270A/2022-23/1045642529(1). C. 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 penalty order dated 19.09.2022 made u/s. 271B of the Act (Annexure-F) to this Writ Petition in the interest of justice; issued by 2nd Respondent in No.ITBA/PNL/F/2713/2022-23/1045642804(1). D. The petitioner humbly pray that this Hon’ble Court may be pleased to issue a Writ of Certiorari or in the 3 nature of Writ of Certiorari quashing the ex-parte order of penalty dated 21.09.2022 made u/s. 271F of the Act (Annexure-G) to this Writ Petition in the interest of justice; issued by 2nd respondent in No.ITBA/PNL/F/271F/2022-23/1045758658(1). E. 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 respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that pursuant to issuance of notice dated 29.03.2021 under Section 148 of the I.T. Act and the notice dated 13.11.2021 issued under Section 142(1) of the I.T. Act, petitioner submitted a reply dated 15.12.2021 enclosing documents. Subsequently, respondents issued one more notice dated 08.02.2022, to which the petitioner submitted a reply dated 17.03.2022 requesting some more time so as to enable him to collect and collate all relevant 4 documents. So also, for the same reasons, petitioner could not submit its reply to the show-cause notice dated 23.03.2022 as a result of which, respondents proceeded to pass the impugned exparte assessment order and consequential penalty orders without providing sufficient or reasonable opportunity to the petitioner. It is submitted that the inability and omission on the part of the petitioner to respond to the said notices issued by the respondent was due to bonafide reasons, sufficient cause and unavoidable circumstances and the respondents have proceeded to pass the impugned exparte assessment order and consequential penalty orders against the petitioner, who is before this Court by way of the present petition. It is further submitted that if one more opportunity is granted, petitioner would file a detailed reply along with relevant documents and respondents are to be directed to consider the same and proceed further in accordance with law. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5 5. The material on record discloses that it is the specific assertion on the part of the petitioner that due to bonafide reasons, sufficient cause and unavoidable circumstances, he was not in a position to submit his replies to the notices since he was still collecting and collating the documents, despite which the respondents passed the impugned exparte assessment order. Under these circumstances, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner to submit his reply along with documents to the aforesaid notice dated 29.03.2021 issued under Section 148 of the I.T. Act and to contest the proceedings, I deem it just and appropriate to set aside the impugned assessment order and consequential penalty orders and remit the matter back to the concerned respondent for reconsideration afresh in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned assessment order dated 29.03.2022 vide Annexure-D and the penalty 6 orders dated 19.09.2022, 19.09.2022 and 21.09.2022 vide Annexures - E, F and G are hereby quashed. (iii) The matter is remitted back to the concerned respondent for reconsideration afresh from the stage of issuance of notice dated 29.03.2021 under Section 148 of the Income Tax Act, 1961 and to proceed further in accordance with law after providing an opportunity of personal hearing to the petitioner. (iv) Liberty is reserved in favour of the petitioner to submit his returns and contest the proceedings pursuant to the Section 148 notice dated 29.03.2021, referred to supra. Sd/- JUDGE KTY/BMC "