SRI. BASAVARAJU MUNINARAYANA V. INCOME TAX OFFICER

WP/7748/2023

AI Insights

The case involves two writ petitions filed by Sri. Basavaraju Muninarayana against various income tax authorities challenging the assessment orders, attachment orders, and penalty orders for the assessment years 2018-19 and 2019-20. The petitioner argued that the satisfaction note prepared by the transferring assessing officer was not furnished, which is mandatory under Section 153C of the Income Tax Act. The court referenced a similar case (W.P.No.4943/2017 c/w. W.P.No.4847/2023) where it had interfered with similar assessment orders, leading to the decision to quash the current orders and restore proceedings for reconsideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 752656 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 21-04-2023
• Assessment Year: misc
• Other Referred Cases: W.P.No.4943/2017 c/w. W.P.No.4847/2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: ARAVIND CHAVAN
• Keywords: Assessment Order; Attachment Order; Income Tax; Penalty order; Satisfaction note; Writ petition
• Section: 153C; 270A; 226

Judgement Text

" - 1 - WP No. 7748 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF APRIL, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 7748 OF 2023 (T-IT) C/W WRIT PETITION NO.7750 OF 2023 (T-IT) BETWEEN: SRI. BASAVARAJU MUNINARAYANA S/O BASAVARAJU, AGED 38 YEARS, R/AT NO.10, LAKSHMI NILAYA, MUNESHWARA TEMPLE ROAD, NAGASHETTIHALLI, BANGALORE-560094. …PETITIONER (BY SRI. ARAVIND V CHAVAN.,ADVOCATE) AND: 1. INCOME TAX OFFICER WARD-6(2) (4) BMTC BUILDING, 60 FEET ROAD, KORAMANGALA, BENGALURU-560095. 2. PRINCIPAL COMMISSIONER OF INCOME TAX-6 BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU-560095. 3. ASSISTANT COMMISSIONER OF TAX CENTRAL CIRCLE-2(4), Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - WP No. 7748 of 2023 C.R.BUILDING, QUEENS ROAD, BANGALORE-560 001. 4. PRINCIPAL COMMISSIONER OF TAX CENTRAL CIRCLE, C.R.BUILDING, QUEENS ROAD, BANGALORE-560 001. …RESPONDENTS (BY SRI.E.I. SANMATHI., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS TO FURNISH THE SATISFACTION NOTE PREPARED IN THE CASE OF THE ASSESSEE BY THE TRANSFERRING ASSESSING OFFICER RESPONDENT NO. 1 TO THE THIRD RESPONDENT WHICH IS MANDOTORY U/S. 153C OF THE IT ACT FOR A.Y. 2019-20; QUASH THE ATTACHMENT ORDER PASSED U/S. 226 OF THE IT ACT DATED 04.11.2022 BEARING NO.ITBA/COM/F/ 17/2022-23/1046907033(1) ANNEXURE-F1 PASSED BY THIRD RESPONDENT FOR ASSESSMENT YEAR 2019-20; QUASH THE PENALTY ORDER PASSED U/S. 270A OF THE IT ACT DATED 28.02.2022 BEARING NO ITBA/PNL/ F/270A/2021-22/ 1040164451991) ANNEXURE-D2 PASSED BY THIRD RESPONDENT FOR ASSESSMENT YEAR 2019-20. IN WP NO.7750/2023 BETWEEN: SRI. BASAVARAJU MUNINARAYANA S/O. BASAVARAJU AGED 38 YEARS, R/AT. NO.10, LAKSHMI NILAYA, MUNESHWARA TEMPLE ROAD, - 3 - WP No. 7748 of 2023 NAGASHETTIHALLI, BANGALORE-560094. …PETITIONER (BY SRI. ARAVIND V CHAVAN.,ADVOCATE) AND: 1. INCOME TAX OFFICER WARD-6(2)(4), BMTC BUILDING 80 FEET ROAD KORAMANGALA, BENGALURU-560095. 2. PRINCIPAL COMMISSIONER OF INCOME TAX-6, BMTC BUILDING 80 FEET ROAD KORAMANGALA, BENGALURU-560095. 3. ASSISTANT COMMISSIONER OF TAX, CENTRAL CIRCLE-2(4), C.R. BUILDING, QUEENS ROAD, BANGALORE-560001. 4. PRINCIPAL COMMISSIONER OF TAX, CENTRAL CIRCLE-2(4), C.R. BUILDING, QUEENS ROAD, BANGALORE-560001. …RESPONDENTS (BY SRI.E.I. SANMATHI., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS TO FURNISH THE SATISFACTION NOTE PREPARED IN THE CASE OF THE ASSESSEE BY THE TRANSFERRING ASSESSING OFFICER RESPONDENT NO.1 TO THE THIRD RESPONDENT WHICH IS MANDATORY U/S. 153C OF THE IT ACT FOR A.Y. 2018-19; QUASH THE - 4 - WP No. 7748 of 2023 ATTACHMENT ORDER PASSED U/S. 226 OF THE IT ACT DATED 04.11.2022 BEARING NO.ITBA/ COM/ F/17/2022-23/1046907033(1) ANNEXURE-F1 PASSED BY THIRD RESPONDENT FOR ASSESSMENT YEAR 2018- 19; QUASH THE PENALTY ORDER PASSED U/S. 270A OF THE IT ACT DATED 28.02.2022 BEARING NO ITBA/PNL/F/270A/2021-22/104016420(1) ANNEXURE- E2 PASSED BY THIRD RESPONDENT FOR ASSESSMENT YEAR 2018-19 AND ETC. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner is aggrieved by the third respondent's assessment orders dated 05.07.2021 for the assessment years viz., 2019-20 and 2018-19 respectively and the attachment orders issued under Section 226 the Income Tax Act, 1961. It is submitted that in similar circumstances that are canvassed as in these petitions, this Court has interfered with the assessment orders restoring the proceedings to the third respondent for reconsideration with liberty to the petitioner to file detailed submissions. In support of this submission, a copy of this Court's order dated - 5 - WP No. 7748 of 2023 16.03.2023 in W.P.No.4943/2017 c/w. W.P.No.4847/2023 is placed on record. On perusal of the records, the petitions are allowed quashing the impugned assessment orders dated 05.07.2021 and the attachment order dated 04.11.2022 [Annexures -A and F1 respectively in these writ petitions] restoring the proceedings for reconsideration by the third respondent. The petitioner shall appear before the third respondent without further notice on 03.05.2023. The petitioner shall be at liberty to file detailed submissions. Sd/- JUDGE SA ct:sr "