Smt. M. Anitha Reddy V. National Faceless Assessment Centre, Assessment Unit, Income Tax Department and The Income Tax Officer, Ward No.(4) (2) (1), Bengaluru and Principle Commissioner of Income Tax, Bengaluru 2

WP/35707/2024

AI Insights

The case involves Smt. M. Anitha Reddy, the petitioner, who challenged an ex parte assessment order issued by the National Faceless Assessment Centre under the Income Tax Act, 1961. The petitioner contended that she had not received proper notices under Sections 133(6) and 148, nor a show-cause notice under Section 144B, which are essential for a fair assessment process. Despite receiving notices under Sections 148 and 142(1), she could not participate due to unavoidable reasons. The respondents argued that notices were duly served and the petitioner failed to participate. The court found that the petitioner was not given a fair opportunity to explain her cash transactions, which were the subject of the assessment, and thus allowed the writ petition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 686799 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 08-01-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP; E I SANMATHI
• Assessee Lawyers: SUBRAMANYA
• Keywords: Assessment Order; Exparte assessment order; Income Tax; Notice; Writ petition
• Section: 147; 148; 144; 142(1); 133(6); 144B; 226; 227

Judgement Text

" - 1 - NC: 2025:KHC:850 WP No. 35707 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO.35707 OF 2024 (T-IT) BETWEEN: SMT. M. ANITHA REDDY W/O SRI. M.B. MADAVA REDDY, NO.66/1, NEAR BASAVESHWARA TEMPLE, AVALAHALLI VILLAGE, VIRGONAGARA POST, BENGALURU 560 049. …PETITIONER (BY SRI. SUBRAMANYA R., ADVOCATE FOR SRI. VARUN R.R., ADVOCATE) AND: 1. NATIONAL FACELESS ASSESSMENT CENTRE, ASSESSMENT UNIT, INCOME TAX DEPARTMENT, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI 110 033, REP. BY ITS ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX. 2. THE INCOME TAX OFFICER, WARD NO.(4) (2) (1), BENGALURU, BMTC BUILDING, Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:850 WP No. 35707 of 2024 80 FEET ROAD, 6TH BLOCK, NEAR SONY WORLD SIGNAL, KORAMANGALA, BENGALURU. 3. PRINCIPLE COMMISSIONER OF INCOME TAX, BENGALURU 2, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR SONY WORLD SIGNAL, KORAMANGALA, BENGALURU 560 095. …RESPONDENTS (BY SRI. M. DILIP AND SRI. E.I. SANMATHI, ADVOCATES FOR R1 TO R3) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, 1950 PRAYING TO A) QUASH THE DIGITALLY SIGNED IMPUGNED EXPARTE ASSESSMENT ORDER PASSED UNDER SECTION 147 R/W SECTION 144 AND 144B OF THE INCOME TAX ACT, 1961 DATED 29.11.2024 BEARING DIN NO. ITBA/AST/S/147/2024-25/1070755829(1) ISSUED BY THE RESPONDENT NO.1 (ANNEXURE - A) AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT - 3 - NC: 2025:KHC:850 WP No. 35707 of 2024 ORAL ORDER Heard Sri. Subramanya.R., learned counsel for Sri. Varun.R.R., learned counsel for the petitioner and Sri. Dilip.M. and Sri. E.I.Sanmathi, learned counsels for respondent Nos.1 to 3. Perused the writ petition papers. 2. Learned counsel for the petitioner Sri. Subramanya would contend that Annexure-A, Assessment Order is an Exparte Order and the Notice either under Section 133(6) nor subsequent Notice under Section 148 of the Income Tax Act, 1961 (for short 'I.T.Act') or Show-cause Notice has not been served on the petitioner. However, learned counsel Sri. Subramanya submits that the petitioner was issued with Notices under Section 148 as well as Section 142(1) of the I.T.Act but for unavoidable reasons, she could not participate in the proceedings. Learned counsel would further submit that the petitioner may be provided with an opportunity to reply to the show-cause notice and also to participate in the proceedings and thereafter, the Assessing Officer be directed to pass an appropriate Assessment Order. - 4 - NC: 2025:KHC:850 WP No. 35707 of 2024 3. Learned counsel Sri. Dilip.M., on the other hand would submit that the petitioner was served with Notices as indicated in the Assessment Order, but the petitioner failed to participate in the proceedings. He admits that Assessment Order at Annexure-A is an Exparte Order and Annexures-A1, A2, A3 and A4 are consequential orders subsequent to Assessment Order. 4. On hearing the learned counsels for the parties and on perusal of the entire writ petition papers, I am of the view that the petitioner ought to be provided an opportunity to participate in the proceedings. Initially, Notice came to be issued to the petitioner under Section 133(6) of the I.T.Act and thereafter Notices were issued under Section 148 and Section 142(1) and Show-cause Notice under Section 144B of the I.T.Act. The petitioner has failed to participate in the proceedings. The dispute is with regard to the cash transactions by the petitioner. As the Assessment Order is an Exparte Order without hearing the petitioner and as the petitioner had no opportunity to explain cash transaction, I deem it appropriate in the facts and circumstances of the case, to provide an - 5 - NC: 2025:KHC:850 WP No. 35707 of 2024 opportunity to the petitioner to participate in the proceedings. Hence, the following: ORDER (a) Writ Petition is allowed; (b) Annexures-A, A1 to A4 bearing Nos.ITBA/AST/S/147/2024-25/1070755829(1); ITBA/AST/S/330/2024-25/1070755888(1); ITBA/AST/S/156/2024-25/1070755890(1); ITBA/PNL/S/271AAC(1)/2024-25/1070755964(1); ITBA/PNL/S/272A(1)(d)_FL/2024-25/1070755626(1) dated 29.11.2024 are quashed. (c) The matter is remitted to the stage of submitting reply to the Notice under Section 148 of the I.T.Act. (d) Four weeks time is granted to reply to the Notice under Section 148 of the I.T.Act. Thereafter, respondent No.1 to proceed to pass Assessment Order in accordance with law. Sd/- (S.G.PANDIT) JUDGE SMJ List No.: 1 Sl No.: 25 "