Smt. Vinuta Reddy V. Additional Joint/Deputy Assistant Commissioner of Income Tax, National Faceless Assessment Centre, Delhi and Principal Chief Commissioner of Income Tax, National E-Assessment Centre, Delhi

WP/21548/2022

AI Insights

The case involves Smt. Vinuta Reddy, the petitioner, who challenged an ex parte assessment order and subsequent notice issued by the Income Tax Department for the Assessment Year 2020-21. The petitioner was unable to respond to earlier notices due to the continuous ill health and eventual death of her brother during the COVID-19 pandemic, which she claimed as a bonafide reason for her non-compliance. The court, considering the circumstances and the principles of natural justice, decided to set aside the impugned order and remand the case for a fresh assessment, allowing the petitioner an opportunity to present her case and documents.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 688073 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 08-12-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: BALRAM RAO
• Keywords: Bonafide reasons; Exparte order; Justice-oriented approach; Unavoidable circumstances
• Section: 144; 143(2); 144B; 156

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 8TH DAY OF DECEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.21548 OF 2022 (T - IT) BETWEEN: SMT. VINUTA REDDY, D/O LATE NANJUNDA REDDY, AGED 38 YEARS, R/AT NO.120/A, KANEGOWDANA HALLI, NELAMANGALA TALUK, BENGALURU RURAL – 562 123, KARNATAKA, INDIA. PAN NO.BXPPR3737N. …PETITIONER (BY SRI.BALRAM R. RAO, ADVOCATE) AND: 1. ADDITIONAL JOINT /DEPUTY ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, INCOME TAX DEPARTMENT, DELHI II FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. 2. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, NATIONAL E-ASSESSMENT CENTRE INCOME TAX DEPARTMENT, DELHI II FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. …RESPONDENTS (BY SRI.M.DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF TO QUASH AND SET 2 ASIDE THE IMPUGNED PASSED ORDER U/S 144 R/W SECTION 144B OF THE INCOME TAX ACT DATED 26.09.2022 IN DIN AND NOTICE NO.ITBA/AST/S/144/2022-2023/1045937034 (1) ANNEXURE - A AND NOTICE DATED 26.09.2022 ISSUED U/S 156 OF THE INCOME TAX ACT HAVING DOCUMENT NO.ITBA/AST/S/156/2022-23/1045937106(1) ANNEXURE - A1 FOR THE ASSESSMENT YEAR 2020-21 AND ETC., THIS W.P. COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER In this petition, the petitioner has sought for the following reliefs: a. Issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ order or direction under Article 226 of the Constitution of India, calling for the records of the petitioner's case and after examining the legality and validity thereof be pleased to quash and set aside the impugned passed order under section 144 read with section 144B of the Income Tax Act dated 26.09.2022 in DIN and Notice No.ITBA/AST/S/144/2022-2023/1045937034 (1) (Annexure-A) and notice dt. 26.09.2022 issued under section 156 of the Income Tax Act having document No.ITBA/AST/S/156/2022-23/ 1045937106(1) (Annexure-A1) for the Assessment Year 2020-21 b. Issue a writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of the 3 Constitution of India ordering and directing the Respondents by withdrawing and canceling the impugned order issued under section 144 read with Section 144B of the Income Tax Act dtd 26.09.2022 in DIN and Notice No.ITBA/AST/S/144/2022-2023/ 1045937034 (1) (Annexure-A) and notice dt. 26.09.2022 issued under section 156 of the Income Tax Act having document No.ITBA/AST/S/156/2022- 23/1045937106(1) (Annexure-A1) for the Assessment Year 2020-21 c. Issue a writ of prohibitio or a writ in the nature of prohibitio or any other appropriate writ, order or direction under Article 226 of the Constitution of India prohibiting and restraining the Respondents by themselves, their subordinates, servants and agents from taking any action in furtherance or consequent to impugned order passed under section 144 read with Section 144(b) of the Income Tax Act dated 26.09.2022 in DIN and Notice No.ITBA/AST/S/144/2022- 2023/ 1045937034 (1) (Annexure-A) and notice dt. 26.09.2022 issued under section 156 of the Income Tax Act having document No.ITBA/AST/S/156/2022-23/1045937106(1) (Annexure-A1) for the Assessment Year 2020-21 d. Issue such other order, writ or direction as the Hon'ble Court deems fit and direct the Respondents to pay the cost of this writ petition. 4 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. The material on record discloses that on account of the continuous ill health and hospitalisation of the petitioner's brother during the period from 2020-2021, the petitioner was not in a position to submit a reply either to the notice dated 29.06.2021 issued under Section 143(2) of the Income Tax Act, 1961 (Hereinafter referred to as the 'IT Act' for short) or to the show cause notices dated 28.02.2022 and 05.09.2022 during which period the petitioner's brother expired on account of the COVID-19 pandemic. Subsequently, on 15.09.2022, the petitioner filed his response seeking further time of one month to collate all relevant documents and file detailed response in this regard. 4. It is the grievance of the petitioner that despite the petitioner seeking time up to one month to collate all the documents and furnish the same to the respondents, the 5 respondents have proceeded to pass the impugned exparte order on 26.09.2022 itself, aggrieved by which, the petitioner is before this Court by of the present petition. 5. It is submitted that the inability and omission on part of the petitioner to submit replies along with documents to the notices and show cause notices and to participate in the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause. It is, therefore, submitted that if the impugned order is set aside and one more opportunity is granted in favour of the petitioner, he would produce all relevant documents along with his reply, which have to be directed to be considered by the respondents in accordance with law. 6. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 7. The material on record discloses that the impugned assessment order that has been passed by the respondents is an exparte assessment order passed 6 without the petitioner submitting his reply/documents, nor participating in the proceedings. Under these circumstances by adopting justice oriented approach and to provide one more opportunity to the petitioner to contest the matter on merits, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondent for reconsideration afresh in accordance with law. 8. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order passed under Section 144 read with Section 144B of the IT Act dated 26.09.2022 vide Annexure - A is hereby set aside. (iii) The matter is remitted back to the respondent for reconsideration afresh in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit pleadings, documents, replies and 7 etc., to the respondent which shall consider the same and proceed further in accordance with law. Sd/- JUDGE KTY "