M/S SREE BALAJI PLYWOODS V. THE INCOME TAX OFFICER

WP/1962/2020

AI Insights

The case involves M/s Sree Balaji Plywoods, a partnership firm, represented by its partner Sri Ashok Kumar, who filed a writ petition against the Income Tax Officer, Ward 1(2)(1), challenging the Assessment Order and Demand Notice issued on 30.12.2019 under Section 143(3) of the Income Tax Act, 1961. The petitioner argued that the respondent issued the demand notice and assessment order without providing an opportunity to address queries or furnish necessary documents, thus violating the principles of natural justice and Section 68 of the I.T. Act. The respondent contested the petition, asserting its lack of merit. The court found that the respondent had indeed violated the procedural requirements by not providing an opportunity to the petitioner to respond adequately before issuing the impugned orders.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 753968 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-09-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: VANI
• Keywords: Assessment Order; Demand notice; Natural Justice; Quash; Show cause notice
• Section: 143(3); 143(2); 68

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 15TH DAY OF SEPTEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.1962 OF 2020( T-IT) BETWEEN: M/S SREE BALAJI PLYWOODS 119/1, INFANTRY ROAD, BENGALURU - 560 001 A PARTNERSHIP FIRM REPRESENTED BY ITS PARTNER SRI ASHOK KUMAR S/O SRI MOHAN C AGED ABOUT 62 YEARS, …PETITIONER (BY SMT. VANI.H., ADVOCATE) AND: THE INCOME TAX OFFICER WARD 1(2)(1) BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU - 560 095 …RESPONDENT (BY SRI. M. DILIP, ADVOCATE) ***** THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED: 30.12.2019 PASSED BY THE RESPONDENT U/S 143(3) OF HTE INCOME TAX ACT, 1961 VIDE ANNEXURE-D AND ETC. THIS W.P. COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:- 2 ORDER In this petition, the petitioner seeks quashing of the impugned Assessment Order dated 30.12.2019 and the impugned Demand Notice dated 30.12.2019 passed by the respondent vide Annexures-D and E respectively and for other reliefs. 2. Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record. 3. In addition to reiterating the various contentions urged in the Memorandum of Petition and referring to the documents produced by the petitioner, learned counsel for the petitioner invites my attention to the notice dated 08.08.2018 issued by the respondent under Section 143(2) of the Income Tax Act, 1961 (for short “the I.T. Act”) and in response thereto, the petitioner submitted a reply at Annexure-C dated 06.12.2019 along with all necessary enclosures. It is submitted that despite the petitioner submitting a reply along with all necessary details, the respondent has proceeded to issue the 3 impugned demand notice and Assessment Order at Annexures-D and E respectively, without providing any opportunity to the petitioner and without calling upon the petitioner to answer the queries and furnish necessary documents as regards details already furnished by him and the same is violative of principles of natural justice and also in violation of Section 68 of the I.T. Act and as such, the petitioner is before this Court by way of the present petition. 4. Per contra, learned counsel for the respondent submits that there is no merit in the petition and the same is liable to be dismissed. 5. As rightly, contended by learned counsel for the petitioner, despite referring to the details/documents submitted by the petitioner along with reply dated 06.12.2019, the respondents have proceeded to pass the impugned Assessment Order without providing any opportunity to the petitioner as contemplated under Section 68 of the I.T. Act and consequently, the impugned order passed by the respondent being not only contrary to Section 68 of the I.T. Act, but also in violation of principles 4 of natural justice and hence, the impugned order/notice deserve to be quashed and the matter be remitted back to the respondent by treating the aforesaid impugned Assessment Order at Annexure-D as show-cause notice and provide an opportunity to the petitioner to submit its reply along with documents and to proceed further in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Assessment Order dated 30.12.2019 and the Demand Notice dated 30.12.2019 passed by the respondent vide Annexures-D and E respectively are hereby quashed. (iii) The impugned Assessment Order at Annexure-D is directed to be treated as show-cause notice, to which liberty is reserved in favour of the petitioner to submit 5 his reply within four weeks along with necessary documents. (iv) Upon receipt of the said response/reply by the petitioner along with documents, the respondent shall provide an opportunity of personal hearing to the petitioner and proceed thereafter in accordance with law. Sd/- JUDGE Bmc "