SHAM RAO ANIL KUMAR V. UNION OF INDIA

WP/15445/2021

AI Insights

The case involves Sham Rao Anil Kumar, the petitioner, challenging the legality of certain provisions and notifications under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, and subsequent assessment orders issued by the income tax authorities. The petitioner argued that these provisions and notifications were ultra vires the Income Tax Act, 1961, particularly concerning the extension of limitation dates for assessments. The court's decision focused on the procedural fairness in the assessment process, emphasizing the need for adequate opportunity for the taxpayer to respond and present documents.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 722182 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-09-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP; CGSC
• Assessee Lawyers: SHREEHARI KUTSA
• Keywords: Assessment orders; Certiorari; Certiorari; Limitation Date; Mandamus; Natural Justice; Ultra Vires
• Section: 143(3); 153A; 156; 226; 227

Judgement Text

" -1- IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF SEPTEMBER, 2022 BEFORE THE HON’BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.15445 OF 2021 (T-IT) BETWEEN SHAM RAO ANIL KUMAR, S/O SRI R SHYAM RAO, AGED 50 YEARS, NO.199, MARUTHI NIVAS, METAGALLI EXTENSION, KRS ROAD, METAGALLI, MYSURU – 570 016. ...PETITIONER (BY SRI.SHREEHARI KUTSA, ADV.,) AND 1. UNION OF INDIA, REPRESENTED BY DIRECTOR, DEPARTMENT OF REVENUE UNDER MINISTRY OF FINANCE, ROOM NO.46, NORTH BLOCK, NEW DELHI – 110 001. 2. CENTRAL BOARD OF DIRECT TAXES, REPRESENTED BY CHAIRMAN, NORTH BLOCK, NEW DELHI – 110 002. 3. JOINT COMMISSIONER OF INCOME TAX (OSD), CENTRAL CIRCLE 1(3), BENGALURU. …RESPONDENTS (BY SRI.M.DILIP, ADV. FOR R2 AND R3; CGSC FOR R1) -2- THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUION OF INDIA PRAYING TO DECLARE INSOFAR THE PETITIONER IS CONCERNED THAT THE SECTION 3 OF THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 IS ULTRA VIRES THE SCHEME AND PROVISIONS OF THE INCOME TAX ACT, 1961 TO THE EXTENT IT CONFERS POWERS ON CENTRAL GOVERNMENT TO EXTEND BY WAY OF NOTIFICATION THE LIMITATION DATE FOR COMPETITION OF THE ACTIONS SPECIFIED UNDER SUB-SECTION (1) OF THE SAID SECTION ENCLOSED AS ANNEXURE – A AND ETC., THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner has sought for the following reliefs: i. Issue a writ of mandamus or any other appropriate writ(s), order(s), direction(s) declaring insofar the Petitioner is concerned that the Section 3 of the Taxation and other laws (relaxation and amendment of certain provisions) Act, 2020 is ultra-vires the scheme and provisions of the income Tax Act, 1961 to the extent it confers powers on central government to extend by way of notification the limitation date for competition of the actions specified under sub-section (1) of said section enclosed as Annexure-A. ii. Issue a writ of mandamus or any other appropriate writ(s), order(s), direction(s) declaring insofar the Petitioner is concerned that the Notification No.S.O.966(E) -3- [No.10/2021/F.No.370142/35/2020-TPL] dated 27/02/2021 and the Notification No. S.O.1703(E)[No.38/2021/F.No.370142/35/ 2020-TPL] dated 27.04.2021 issued by the Central Board of Direct Taxes and enclosed as Annexures-B1 & B2 are illegal insofar they extend the due date of assessment or reassessment and quash the same insofar it extends the limitation date for conclusion of assessment proceedings. iii. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 153A of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2013-14 bearing DIN No. ITBA/AST/S/153A/2021- 22/1033143236(1) which is enclosed as Annexure-C1. iv. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 153A of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2014-15 bearing DIN No. ITBA/AST/S/153A/2021- 22/1033143351(1) which is enclosed as Annexure-C2. v. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 153A of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2015-16 bearing DIN No. ITBA/AST/S/153A/2021-22/10331 43425(1) which is enclosed as Annexure- C3. -4- vi. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 153A of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2016-17 bearing DIN No. ITBA/AST/S/153A/2021- 22/1033143494(1) which is enclosed as Annexure-C4. vii. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 153A of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2017-18 bearing DIN No. ITBA/AST/S/153A/2021-22/10331 43462(1) which is enclosed as Annexure- C5. viii. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 153A of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2018-19 bearing DIN No. ITBA/AST/S/153A/2021-22/10331 43583(1) which is enclosed as Annexure- C6. ix. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 143(3) of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2019-20 bearing DIN No. ITBA/AST/S/153(3)/2021- -5- 22/1033143747(1) which is enclosed as Annexure-C7. x. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of the Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2013-14 bearing DIN No. ITBA/AST/S/156/2021-22/1033143269(1) which is enclosed as Annexure-D1. xi. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2014-15 bearing DIN No. ITBA/AST/S/156/2021-22/10331 43387(1) which is enclosed as Annexure-D2. xii. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2015-16 bearing DIN No. ITBA/AST/S/156/2021-22/1033143461(1) which is enclosed as Annexure-D3. xiii. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2016-17 bearing DIN No. ITBA/AST/S/156/2021-22/1033143537(1) which is enclosed as Annexure-D4. -6- xiv. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2017-18 bearing DIN No. ITBA/AST/S/156/2021-22/1033143498(1) which is enclosed as Annexure-D5. xv. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2018-19 bearing DIN No. ITBA/AST/S/156/2021-22/1033143611(1) which is enclosed as Annexure-D6. xvi. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of Income Tax Act, 1961 dated 28.05.2021 passed by the Respondent No.1 for the Assessment Year 2017-18 bearing DIN No. ITBA/AST/S/156/2021-22/1033143786(1) which is enclosed as Annexure-D7. xvii. And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity. 2. Heard the learned counsel for the petitioner, learned counsel for respondent No.2 and learned CGSC for respondent No.1 and perused the material on record. -7- 3. In addition to reiterating the various contentions urged in the petition and referring the material on record, learned counsel for the petitioner invites my attention to the impugned orders in order to point out that pursuant to show cause notice dated 01.03.2021 issued by the respondents, the petitioner submitted his tentative/preliminary response furnishing certain particulars and producing certain documents and requested the respondents to grant some more time to make further submission and an opportunity to hearing for the purpose of producing documents. 4. It is the grievance of the petitioner that despite noticing the aforesaid show cause notice and the response/reply submitted by the petitioner including the request made by the petitioner for an opportunity of further hearing and time to produce additional documents and submit additional reply/response, the respondents have proceeded to pass the impugned assessment orders without granting/providing sufficient and reasonable -8- opportunity for the petitioner to furnish additional response/reply and documents and without hearing the petitioner, thereby violating the principles of natural justice and consequently, the impugned assessment orders deserve to be quashed. 5. Per contra, learned counsel for the respondents submits that there is no merit in the matter and the same is liable to be dismissed. 6. As rightly contended by the learned counsel for the petitioner, after noticing the facts and circumstances obtaining in the instant case, the respondents have culled out the response submitted by the petitioner and noticed that the petitioner had requested for some more opportunity for hearing and to enable him to make further submissions before the respondents and also sought for time to furnish the additional reply / response along with documents. Having noticed the said submissions/requests made by the petitioner, the respondents clearly fell in error in proceeding to pass the impugned orders without -9- providing sufficient or reasonable opportunity in favour of the petitioner, in spite of the aforesaid requests being made by him and consequently, the impugned orders passed by the respondents are violative of principles of natural justice and by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned orders and remit back the matter to the respondents for reconsideration afresh in accordance with law by providing one more opportunity to submit additional reply/response and the additional documents in support of his claim. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned orders at Annexures-C1, C2, C7, D1 and D7 all dated 28.05.2021 passed by the 1st respondent are hereby set aside. (iii) The matter is remitted back to respondent No.3 for reconsideration afresh in accordance with law. -10- (iv) Liberty is reserved in favour of the petitioner to submit additional response / reply and additional documents before respondent No.3, who shall consider the same and pass appropriate orders in accordance with law. (v) All rival contentions are kept open and no opinion is expressed on the same. Sd/- JUDGE KA/SRL "