Smt. Prema Somashekar V. The Union of India and The Assessment Unit Income Tax Department and The Assistant Commissioner of Income Tax NAFAC-1(1)(2) and The Additional/Joint/Deputy/Assistant Commissioner of Income Tax and The Assessment Unit/Verification Unit/Technical Unit/Revenue Unit Income Tax Department

WP/20760/2022

AI Insights

This case involves a writ petition filed by Smt. Prema Somashekar against the Union of India and various officials of the Income Tax Department, challenging the assessment order for the assessment year 2020-21. The petitioner contended that despite submitting a reply to a show-cause notice, the authorities proceeded to pass the assessment order without considering her response. The court examined the procedural fairness and adherence to the principles of natural justice in the assessment process.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 803825 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-06-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: RAJEEV NULVI
• Keywords: Adjournment; Email Communication; Quash assessment order; Show cause notice; Violation of Principles of Natural Justice
• Section: 143(3); 144B; 156

Judgement Text

" - 1 - NC: 2023:KHC:20712 WP No. 20760 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JUNE, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 20760 OF 2022 (T-IT) BETWEEN: 1. SMT. PREMA SOMASHEKAR W/O LATE SOMASHEKAR C R AGED ABOUT 67 YEARS RESIDING AT SWAMY KRUPA WARD NO.12, RAILWAY STATION ROAD, BIRUR, KARNATAKA - 577 116 CHIKAMAGALUR DISTRICT … PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI., ADVOCATE) AND: 1. THE UNION OF INDIA REPRESENTED BY ITS JOINT SECRETARY MINISTRY OF FINANCE AND DEPARTMENT OF REVENUE (INCOME TAX DEPARTMENT ) ROOM NO. 46, NORTH BLOCK NEW DELHI - 110 001 2. THE ASSESSMENT UNIT INCOME TAX DEPARTMENT NORTH BLOCK NEW DELHI DELHI - 110 001 Digitally signed by B K MAHENDRAKUMAR Location: High Court of Karnataka - 2 - NC: 2023:KHC:20712 WP No. 20760 of 2022 3. THE ASSISTANT COMMISSIONER OF INCOME TAX NAFAC-1(1)(2) NATIONAL FACELESS ASSESSMENT CENTRE NORTH BLOCK, NEW DELHI DELHI - 110 001 4. THE ADDTIONAL/JOINT/DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE NORTH BLOCK NEW DELHI DELHI - 110 001 5. THE ASSESSMENT UNIT/VERIFICATION UNIT/ TECHNICAL UNIT /REVENUE UNIT INCOME TAX DEPARTMENT NORTH BLOCK, NEW DELHI DELHI - 110 001 … RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ASSESSMENT ORDER U/S 143(3) R/W SECTION 144B OF THE INCOME TAX ACT, 1961 VIDE DIN NO.ITBA/AST/S/143(3)/2022-23/1045941348(1) DATED 26.09.2022 ALONG WITH COMPUTATION SHEET VIDE DIN NO.ITBA/AST/S/330/2022-23/1045941563(1) DTD 26.09.2022 AND DEMAND NOTICE U/S 156 OF THE INCOME TAX ACT, 1961 VIDE DIN NO.ITBA/AST/S/156/2022-23/1045941434(1) DTD 26.09.2022, PASSED BY THE R2 AUTHORITY, PASSED BY THE R2 AUTHORITY, PERTAINING TO ASSESSMENT YEAR 2020-21 VIDE ANNEXURE-A, A1 AND A2 RESPECTIVELY AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2023:KHC:20712 WP No. 20760 of 2022 ORDER 1. The petitioner has sought for quashing of the assessment order under Section 144B of the Income Tax Act, 1961 dated 26.09.2022 along with computation sheet and demand notice under Section 156 of the Income Tax Act, 1961, copies of which are enclosed at Annexure-A, A1 and A2 respectively. 2. It is the contention of the petitioner that after show-cause notice came to be issued, motion for adjournment was made as per Annexure-'G' on 16.09.2022 on medical grounds seeking for adjournment till 23.09.2022. The making of such adjournment remains uncontroverted. Meanwhile, the petitioner has also sent a communication seeking for opportunity to submit reply in response to the show-cause notice by Email dated 22.09.2022. Along with the said request, reply also has been sent by way of attachment to the said mail. Such aspect is also not in dispute. However, it is noticed from the assessment order at Annexure-A while observing that there was no reply to the show-cause notice dated 09.09.2022, matter is proceeded with and the order is passed. - 4 - NC: 2023:KHC:20712 WP No. 20760 of 2022 3. The facts make out a case which requires interference in light of violation of principles of natural justice insofar as respondents ought to have taken reasonable view of the matter and taken note of the reply that was sent on 21.09.2022 while noticing that the order came to be passed only on 26.09.2022. 4. Accordingly, the orders at Annexure-A, A1 and A2 are set aside. All consequential orders including penalty order pursuant to the assessment order are set aside. The matter is relegated to the competent authority to resume proceedings post issue of show-cause notice dated 09.09.2022. The petitioner to re-file her statement of objections to the show-cause notice and the authority to proceed thereafter as per law. Sd/- JUDGE NP "