SELLAKANNU RAMANATHAN V. PRINCIPAL COMMISSIONER

WP/13107/2024

AI Insights

In this case, Sellakannu Ramanathan, the petitioner, challenged an assessment order and a subsequent demand notice issued by the Income Tax Department. The original assessment favored the petitioner, but upon revision under Section 263 of the Income Tax Act, a new order was passed, imposing additional tax. The petitioner contended that due to unavoidable circumstances, he could not submit necessary documents in response to the show cause notices, and sought another opportunity to present his case. The court, considering the circumstances, decided to quash the impugned order and notice, remitting the matter back for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 744303 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-08-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India, Section 263 of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DILIP
• Assessee Lawyers: MALLAHAR RAO
• Keywords: Assessment Order; Demand notice; Income Tax; Writ of Certiorari; Writ of prohibition
• Section: 263; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:34127 WP No. 13107 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No. 13107 OF 2024 (T-IT) BETWEEN: SELLAKANNU RAMANATHAN AGED ABOUT 35 YEARS No.176, 1ST MAIN, 7TH CROSS, PRAKASHNAGARA BANGALORE - 560 021. …PETITIONER (BY SRI MALLAHAR RAO, ADVOCATE) AND: 1. PRINCIPAL COMMISSIONER OF INCOME TAX BENGALURU - 1 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU - 560 095. 2. THE ASSESSMENT UNIT INCOME TAX DEPARTMENT NEW DELHI -110 002. REP BY: INCOME TAX OFFICER/ ASSESSING OFFICER. …RESPONDENTS (BY SRI DILIP M, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER BEARING DIN ITBA/AST/S/144/2023-24/1062741274(1) PASSED ON 16/03/2024 VIDE ANNEXURE-M AND DEMAND NOTICE BEARING DIN ITBA/AST/S/156/2023-24/1062741341(1) DATED 16/03/2024 AT ANNEXURE-M1 AND ETC., Digitally signed by MADHURI S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:34127 WP No. 13107 of 2024 THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks for the following reliefs: \"a) Issue Writ of Certiorari or in the like nature of Certiorari quashing the Impugned assessment order bearing DIN ITBA/AST/S/144/2023-24/1062741274(1) passed 16/03/2024 vide ANNEXURE-M and demand notice bearing DIN- ITBA/AST/S/156/2023-24/1062741341(1) dated 16/03/2024 at ANNEXURE-M1. b) Issue Writ of Prohibition, not to proceed further steps or measures or any such kind of initiatives pertaining to recovery(s) pursuant to the impugned assessment order and the impugned demand made thereof vide- ANNEXURE-M & ANNEXURE-M1; directing the respondent authorities to refrain from further coercive steps, in any manner of whatsoever in nature, in pursuant to the impugned assessment order and demand notice, both dated 16.03.2024 for the assessment year 2018-19. c) Pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of this case, in the interest of justice and equity.\" 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that in the first instance, respondent No.2 passed an assessment order in favour of the petitioner on 22.02.2021, which was taken up by the - 3 - NC: 2024:KHC:34127 WP No. 13107 of 2024 respondent in revision suo moto under Section 263 of Income Tax Act, which culminated in the order dated 20.03.2023, followed by notices dated 15.01.2024 and 07.02.2024 for re-adjudication for the assessment year 2018-19. In pursuance of the same, respondent No.2 issued show cause notices dated 16.02.2024 and 23.02.2024 calling upon the petitioner as to why the assessment should not be concluded based on the materials available on record. In response thereto, petitioner submitted reply dated 27.02.2024 and pursuant to which, respondent No.2 has proceeded to pass the impugned order to the effect by making an addition to tune of Rs.16,92,000/- and thereby levied tax of Rs.3,66,870/-. Aggrieved by which, the petitioner is before this Court, by way of the present petition. 4. Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, petitioner could not submit documents along with reply. If one more opportunity is granted in his favour and petitioner would do so and matter may be remitted back for reconsideration afresh in accordance with law. - 4 - NC: 2024:KHC:34127 WP No. 13107 of 2024 5. Though submission is made on behalf of the learned counsel for the petitioner, learned counsel for the revenue opposed the same and prays to dismiss the petition. 6. A perusal of the impugned order will indicate that respondent No.2 has proceeded to pass the impugned order rejecting the reply of the petitioner on the ground that no documents were produced by him. 7. Under these circumstances, in order to provide one more opportunity in favour of the petitioner, to substantiate his claim, I deem it just and appropriate to set aside the impugned order and remit the matter back to respondent No.2 for re- consideration afresh from the stage of petitioner submitting reply to the show cause notice and to proceed further in accordance with law. 8. Accordingly, I pass the following: ORDER i) The petition is hereby allowed. ii) The impugned order at Annexures-M and M1 are hereby quashed. - 5 - NC: 2024:KHC:34127 WP No. 13107 of 2024 iii) The matter is remitted back to respondent No.2 for reconsideration afresh from the stage of replying to show cause notices dated 16.02.2024 and 23.02.2024 issued by the respondents. iv) Liberty is reserved in favour of the petitioner to produce additional pleadings/documents which shall be considered by respondent No.2, who shall provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 17 "