Sri Donthy Krishnaiah Setty Jayachandra Gupta V. Assessing Officer National Faceless Assessment Centre and Jurisdictional Assessing Officer Income Tax Officer, Ward-7 (2)(1) and Principal Commissioner of Income Tax-7

WP/23411/2021

AI Insights

The case involves Sri Donthy Krishnaiah Setty Jayachandra Gupta, the petitioner, who challenged an assessment order passed by the National Faceless Assessment Centre (respondent No.1) for the assessment year 2018-19. The petitioner argued that the assessment order was passed without a mandatory personal hearing, despite repeated requests for one, which he claimed violated the principles of natural justice. The respondents contended that the petition lacked merit. The court found that the failure to provide a personal hearing, as requested, was indeed a violation of natural justice and thus set aside the assessment order, remitting the matter back for fresh consideration.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798750 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-11-2022
• Assessment Year: misc
• Laws Referred To: Constitution of India, IT Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: ARAVIND CHAVAN
• Keywords: Assessment Order; Natural Justice; Personal hearing; Writ of Certiorari
• Section: 143(3); 226; 227; 144B(7)(ix); 144B(9)

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.23411 OF 2021(T-IT) BETWEEN: SRI DONTHY KRISHNAIAH SETTY JAYACHANDRA GUPTA S/O DONTHY KRISHNAIAH SETTY AGED 59 YEARS, R/AT NO.16, GIRLS SCHOOL ROAD DODDAMAVALLI, V.V. PURAM BENGALURU-560004 …PETITIONER (BY SRI. ARAVIND.V.CHAVAN., ADVOCATE) AND: 1 . ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE NO.412-413, 1ST FLOOR OPP. METRO PILLAR NO.793 DWARKA MOR, NEW DELHI-110059 2 . JURISDICTIONAL ASSESSING OFFICER INCOME TAX OFFICER, WARD-7 (2)(1) BMTC BUILDING. 80 FEET ROAD KORAMANGALA BENALURU-560 095. 3 . PRINCIPAL COMMISSIONER OF INCOME TAX-7 BMTC BUILDING, 80 FEET ROAD KORAMANGALA BENGALURU-560 095 …RESPONDENTS (BY SRI.E.I.SANMATHI., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY R-1 DTD. 11.09.2021 VIDE ANNX-K FOR A.Y. 2018-19 AND ETC. THIS W.P. COMING ON FOR PRELIMINARY HEARING ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:- 2 ORDER In this petition, the petitioner has sought for the following reliefs: a. Issue a Writ of Certiorari to quash the assessment order passed by first respondent dated 11.09.2021 bearing No.ITBA/AST/S/ 143(3)/2021-22/1035484159(1) Annexure-K for A.Y.2018-19. b. Issue a writ declaring that the impugned assessment order dated 11.09.2021 Annexure-K is “non-est” in accordance with Section 144B(9) of the IT Act for failing to give mandatory hearing as per Section 144B(7)(ix) of the IT Act before passing assessment order. c. Issue such other Writ or direction as this Hon’ble Court deem fit to grant in the facts and circumstances of the present case. 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 Memorandum of Petition and referring to the material on record, learned counsel for the petitioner submits that despite repeated request made by 3 the petitioner to the respondents on 25.08.2021 for an opportunity of personal hearing, having regard to the complexity of the facts involved in the business of cheque discounting carried on by the petitioner, the respondents have not considered the said request made by the petitioner, proceeded to pass the impugned assessment order, which is violative of principles of natural justice and as such, the petitioner is before this Court by way of the present petition. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5. As rightly contended by the learned counsel for petitioner that though repeated request made by the petitioner to the respondents on 25.08.2021 seeking an opportunity of personal hearing as stated supra, was not considered by the respondents, who proceeded to pass the impugned assessment order, which is violative of principles of natural justice. In view of the aforesaid facts and circumstances, without expressing any opinion on the 4 merits and demerits of the rival contentions, I deem it just and appropriate to dispose of this petition by setting aside the impugned assessment order and by giving certain directions to the concerned respondents. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned assessment order dated 11.09.2021 passed by respondent No.1 vide Annexure-K is set aside. (iii) The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law. (iv) Liberty is reserved in favour of the petitioner to produce additional pleadings, documents etc., before respondent No.1, who in turn shall provide the petitioner an opportunity of personal hearing. Sd/- JUDGE Bmc "