SMT NIRANJANA MUTHUSWAMY V. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX

WP/20854/2022

AI Insights

The case involves Smt. Niranjana Muthuswamy, the petitioner, who challenged several assessment orders and notices issued by the Income Tax Department, Karnataka and Goa Region, for the assessment year 2017-18. The petitioner contended that the notices were sent to her previous address, leading to her inability to respond, which resulted in ex-parte orders against her. The respondents argued that the petition lacked merit. The court, adopting a justice-oriented approach, set aside the impugned orders and remitted the matter for fresh consideration, ensuring the petitioner could present her case.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 753891 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-11-2022
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Assessment Order; Income Tax; Notice; Quash; Reconsideration; Writ petition
• Section: 147; 156

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 18TH DAY OF NOVEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.20854 OF 2022 (T-IT) BETWEEN: SMT NIRANJANA MUTHUSWAMY W/O MR SHITIJ RAMESH KALE AGED ABOUT 41 YEARS R/A D-703, ASHOK GARDENS SWAN MILLS, T J ROAD SEWRI MUMBAI-400 015. …PETITIONER (BY SRI. SYED KHAMRUDDIN., ADVOCATE) AND: 1 . PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA REGION GROUND FLOOR, CR BUILDING NO.1 QUEENS ROAD BENGALURU-560 001. 2 . THE ADDITIONAL COMMISSIONER OF INCOME TAX ROOM NO.240, 2ND FLOOR BMTC BUILDING, 80 FEET ROAD KORAMANGALA BENGALURU-560 095. 3 . THE INCOME TAX OFFICER WARD1(2)(1)BANGALORE BMTC BUILDING, 80 FEET ROAD KORAMANGALA BENGALURU-560 095. …RESPONDENTS (BY SRI. M.DILIP., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER BEARING DIN NO.ITBA/AST/S/147/2021- 22/1041912698(1) AND CONSEQUENT NOTICE BEARING NO.ITBA/AST/S/156/2021-22/1041913144(1) BOTH DTD 29.03.2022 FOR THE ASSESSMENT YEAR 2017-18 ANNEXURE-L AND N. 2 THIS W.P. COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER In this petition, petitioners have sought for the following reliefs:- “ (i) Quash the impugned Assessment Order bearing DIN No. ITBA/AST/S/147/2021- 22/1041912698 (1) and consequent Notice bearing No.ITBA/AST/S/156/2021 - 22/1041913144(1) both dated: 29.03.2022, for the assessment year 2017-18 (Annexure- ‘L’ and ‘N’); (ii) Consequently, quash the impugned Assessment Order bearing No. ITBA/PNL/F/2022-23/1044659025(1) and notice bearing No. ITBA/PNL/S/156/2022- 23/1044659106(1) both dated 16.08.2022, for the assessment year 2017-18 (Annexure ‘P’ and ‘R’); (iii) Consequently, quash the impugned Assessment order bearing DIN No. ITBA/PNL/F/271AAC(1)/2022- 23/1044851718(1) AND Notice Bearing No. ITBA/PNL/S/156/2022-23/1044851777(1) both dated 22.08.2022, for the assessment year 2017-18 (Annexure ‘S’ and ‘V’); (iv) Consequently, quash the impugned Assessment order bearing DIN No. ITBA/PNL/F/272A (1) (d) 2022- 3 23/1044976144(1) and Notice bearing no. ITBA/PNL/S/156/2022-23/1044976210(1) both dated: 26.08.2022 issued by respondent No.3 for the assessment year 2017-18 (Annexure- W and Y’) (v) Pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, in the interests of justice and equity.” 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 prior to passing the impugned assessment order dated 29.03.2022, the respondents are said to have issued notices dated 25.03.2021, 24.06.2021, 04.12.2021 and 31.01.2022, which were not responded to by the petitioner as narrated in the impugned order. In this context, learned counsel for the petitioner submits that since the said notices were issued to the previous address of the petitioner, she did not receive the same and consequently, was not in a position 4 to either submit a reply to the aforesaid notices or the show-cause notice, which was issued subsequently on 16.03.2022 as well as the assessment order dated 29.03.2022, which was also issued to the previous address. It is submitted that the inability and omission on the part of the petitioner to submit her response / reply to the earlier notices as well as the subsequent show-cause notice and the draft assessment order was on account of bonafide reasons, unavoidable circumstances and sufficient cause and as such, it is necessary that the same are to be set aside and one more opportunity be provided in favour of the petitioner to submit her response / reply along with the documents to that effect. 4. Learned counsel for the respondents – revenue submits that there is no merit in the petition and the same is liable to be dismissed. 5. Though several contentions have been urged by both sides, in view of the specific assertion on the part of the petitioner that on account of the change of address of the petitioner from the earlier address at No.1, 1st floor, 5 Karle Premium, Airport Road, Bangalore, to the latest address i.e., at No.D-703, Ashok Gardens, Swan Mills, T.J.Road Sewri, Mumbai-400 015, due to which, the petitioner could not receive either earlier notices or show cause notice or draft assessment order, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner to contest the proceedings in the impugned ex-parte assessment order, without expressing any opinion on the merits / demerits of the rival contentions, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh, by providing an opportunity to the petitioner to submit her reply to the same and directing the respondents to proceed in accordance with law. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned assessment order and consequent notice both dated 29.03.2022 at Annexures-L and N are 6 hereby quashed; the impugned assessment order and notice both dated 16.08.2022 at Annexures-P and R are hereby quashed; the impugned assessment order and notice both dated 22.08.2022 at Annexures-S and V are hereby quashed; and the impugned assessment order and notice both dated 26.08.2022 passed by the 3rd respondent at Annexures-W and Y are hereby quashed. (iii) The matter is remitted back to the respondents for reconsideration afresh in accordance with law. (iv) Liberty is reserved in favour of the petitioner to file pleadings, documents, reply etc., to the notices or show cause notice or draft assessment order, which shall be considered by the respondents and shall also afford an opportunity of personal hearing to the petitioner and thereafter pass appropriate orders in accordance with law. Sd/- JUDGE Srl. "