S.L.V. Steel and Alloys Private Limited V. National E-Assessment Centre, Delhi, Income Tax Department and Deputy Commissioner of Income Tax Circle-1, Ballary

WP/104359/2021

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The case involves S.L.V. Steel and Alloys Private Limited, which filed a writ petition against the National E-Assessment Centre and the Deputy Commissioner of Income Tax, challenging the assessment order, demand notice, and penalty notice issued for the assessment year 2018-19. The petitioner argued issues such as non-service of notices, non-passing of draft assessment order, unwarranted haste in passing the order, and lack of merit in the additions made to the total income. The respondents contended that notices were duly sent and received by the taxpayer, who failed to respond. The court found merit in the petitioner's arguments, particularly regarding the service of notices, and remanded the matter for further proceedings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 816160 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH; Y V RAVIRAJ
• Assessee Lawyers: T M SHIVAKUMAR
• Keywords: Assessment Order; Demand notice; Non-service of notices; Penalty notice; Writ of Certiorari; Non-passing of draft assessment order; Unwarranted hurry; Lack of merit in additions
• Section: 143(3); 274; 270A; 143(3A); 143(3B); 156

Judgement Text

" - 1 - NC: 2024:KHC-D:11999 WP No. 104359 of 2021 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 22ND DAY OF AUGUST, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 104359 OF 2021 (T-IT) BETWEEN: S.L.V.STEEL AND ALLOYS PRIVATE LIMITED, T.S. NO. 969/3A, BOMMANAHAL ROAD, BRUPECET, BALLARI, KARNATAKA-583 101. BY ITS DIRECTOR, T.SHIKRAM PRASAD. …PETITIONER (BY SRI. T.M.SHIVAKUMAR., ADVOCATE FOR SRI. M.K.PATHAN., ADVOCATE) AND: 1. NATIONAL E-ASSESSMENT CENTRE, DELHI, INCOME TAX DEPARTMENT, JLN STADIUM, LODHI ROAD, NEW DELHI-110 003. 2. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, BALLARY, AYAKAR BHAWAN, STAFF ROAD FORT, BALLARI, KARNATAKA-583 102. …RESPONDENTS (BY SRI. M.THIRUMALESH AND SRI. Y.V.RAVIRAJ., ADVOCATES) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: Digitally signed by PREMCHANDRA M R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:11999 WP No. 104359 of 2021 ORAL ORDER Sri.T.M.Shivakumar., learned counsel on behalf of Sri.M.K.Pathan., for the petitioner has appeared through video conferencing. Sri.M.Thirumalesh., learned counsel for the respondents has appeared in person. 2. The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the Assessment order dated:31.03.2021 under Section 143(3) R/w. Section 143(3A) and 143(3B) of the Income Tax act, 1961 and the consequential Notice of demand dated:31.03.2021 under Section 156 of the Act as well as the Notice dated:31.03.2021 under Section 274 of the Act initiating Penalty under Section 270A of the Act issued by the first respondent in the petitioner’s case for A.Y. 2018-19 vide Annexure-A. 3. Learned counsel for the respective parties urged several contentions. Heard the contentions and perused the Writ papers with utmost care. 4. The Principal ground on which this Court is asked to quash the Assessment Order, Demand Notice and Penalty - 3 - NC: 2024:KHC-D:11999 WP No. 104359 of 2021 Notice is (i) non-service of notices; (ii) non-passing of draft assessment order; (iii) un-warranted hurry shown in passing the order and (iv) lack of merit in the additions made to the total income. Counsel Sri.M.Thirumalesh., vehemently contends that the notices were duly sent to the tax payer and he has been in receipt of the notices and reminder letter dated:17.02.2021. Counsel further submits that the further notices were issued, however, there was no response from the tax payer, hence, the authority having left with no other option, proceeded further in the matter. Counsel therefore, submits that the Writ Petition is devoid of merits and the same may be dismissed. 5. One of the contention urged on behalf of the tax payer is that the authorities sent notices to the old email I.D despite furnishing new email I.D in the returns that was filed by the tax payer. Learned counsel for the petitioner vehemently contended that few notices were sent during Covid-19 pandemic, hence, they were unable to access the Portal. Counsel Sri.T.M.Shivakumar., submits that now the tax payer is in receipt of notices and hence, an opportunity may be - 4 - NC: 2024:KHC-D:11999 WP No. 104359 of 2021 accorded to the tax payer to reply to the notice and furnish documents to substantiate its claim before the authorities. On facts and in all circumstances of the case, this Court deems it proper to remand the matter by providing an opportunity to the petitioner to reply to the notices and furnish documents to substantiate its claim before the assessing authorities. Therefore, the Assessment Order, Demand Notice and Penalty Notice issued by the first respondent are liable to be set-aside. Accordingly, they are set-aside. 6. The Writ of Certiorari is ordered. The Assessment order dated:31.03.2021 and the consequential Notice of demand dated:31.03.2021 as well as the Notice dated:31.03.2021 under Section 274 of the Act initiating Penalty under Section 270A of the Act issued by the respondent No.1 vide Annexure-A is quashed. The matter is remanded. 7. Resultantly, the Writ Petition is allowed and remanded. Needless to observe that the petitioner must upload the documents in the IT Portal and once the authority is in receipt - 5 - NC: 2024:KHC-D:11999 WP No. 104359 of 2021 of the documents, shall proceed further in the matter. The question of limitation is not urged by the tax payer. The petitioner is hereby directed to upload this order through its portal. Sd/- (JYOTI MULIMANI) JUDGE MRP List No.: 3 Sl No.: 40 "