Sri. Harsha Thambi S. V. The Additional/Joint/Deputy/Assistant Commissioner of Income Tax Income Tax Officer, National Faceless Assessment Centre, Income Tax Department Ministry of Finance and Deputy Commissioner of Income Tax Circle 3(3)(1)

WP/10816/2024

AI Insights

In this case, the petitioner, Sri. Harsha Thambi S., challenged the assessment order, demand notice, and penalty notice issued by the Income Tax Department for the assessment year 2022-23. The petitioner argued that the notices were issued without providing a reasonable opportunity for a personal hearing, which violated the principles of natural justice. The court found that the petitioner was not given adequate time or opportunity to respond to the notices and attend a personal hearing, leading to the decision to quash the notices and remit the matter back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 688014 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-09-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India, Section 143, Section 144B, Section 274, Section 271AAC
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL THIWARI
• Assessee Lawyers: GEETHA K; NARENDRA J JAIN
• Keywords: Assessment Order; Demand notice; Natural Justice; Penalty notice; Personal hearing; Writ petition
• Section: 143(3); 271AAC; 144B; 156

Judgement Text

" - 1 - NC: 2024:KHC:38279 WP No. 10816 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 10816 OF 2024 (T-IT) BETWEEN: SRI. HARSHA THAMBI S. S/O SRINIVAS THAMBI AGED ABOUT 50 YEARS, NO.198, SHREE DARSHAN, 10TH C MAIN, 1ST BLOCK, JAYANAGAR, BANGALORE SOUTH BANGALORE - 560 011 …PETITIONER (BY SRI. GEETHA RANI K., ADVOCATE SRI. NARENDRA KUMAR J. JAIN, ADVOCATE) AND: 1. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E RAMP, JAWARHARLAL NEHRU STADIUM DELHI - 110 003 2. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(3)(1), BMTC BUILDING, 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095 BENGALURU-56500 …RESPONDENTS (BY SRI. SUSHAL THIWARI, ADVOCATE) Digitally signed by REKHA R Location: High Court of Karnataka - 2 - NC: 2024:KHC:38279 WP No. 10816 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED ASSESSMENT ORDER VIDE ITBA/AST/S/143(3)/2023-24/1062777075(1), DATED 17/03/2024 ISSUED BY THE LEARNED FIRST RESPONDENT UNDER SECTION 143 READ WITH SECTION 144B FOR AY 2022-23, ENCLOSED IN ANNEXURE-A. B) QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED DEMAND NOTICE VIDE ITBA/AST/S/156/2023-24/1062777122(1) DATED 17/03/2024 FOR THE PAYMENT OF TAX SO ASSESSED BY THE LEARNED FIRST RESPONDENT FOR THE AY 2022-23, ENCLOSED IN ANNEXURE-B AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: “(i) Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned assessment order vide ITBA/AST/S/143(3)/2023-24/1062777075(1), dated 17.03.2024 issued by the Learned First Respondent under section 143 r.w.s 144B for AY 2022-23, enclosed in Annexure-A. (ii) Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned Demand Notice vide ITBA/AST/S/156/2023-24/1062777122(1) dated 17.03.2024 for the payment of tax so assessed by the - 3 - NC: 2024:KHC:38279 WP No. 10816 of 2024 Learned First Respondent for the AY 2022-23, enclosed in Annexure-B. (iii) Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned Penalty Notice under Section 274 r.w.s 271AAC of the Act vide ITBA/PNL/S/271AAC(1)/2023-24/1062777144(1) dated 17.03.2024 by the Learned First Respondent for the AY 2022-23, enclosed in Annexure C. (iv) Direct the Learned First and Second Respondent by an appropriate writ or Order in the nature of Mandamus or otherwise, not to take any coercive step towards recovery of the disputed tax as stated in demand Notice dated 17.03.2024 issued by Learned First Respondent enclosed as Annexure B.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that pursuant to the proceedings initiated by the respondents against the petitioner by issuance of show cause notice dated 04.03.2024, petitioner filed an application for adjournment requesting time upto 18.03.2024. But the respondent No.1 granted only time upto 12.03.2024 and the petitioner submitted reply on 12.03.2024. On 13.03.2024, respondent No.1 issued a communication vide email - 4 - NC: 2024:KHC:38279 WP No. 10816 of 2024 calling upon the petitioner to appear for video conferencing on the very same day. In pursuance of the same, petitioner submitted reply dated 13.03.2024 requesting opportunity for personal hearing by granting sufficient and reasonable time to the petitioner, which was not granted by respondent No.1, who proceeded to pass the impugned assessment order dated 17.03.2024, which is assailed in the present petition. 4. As stated supra, the request of the petitioner to provide sufficient and reasonable opportunity for attending personal hearing or by way of video conferencing having not been granted by respondent No.1, I am of the considered opinion that the impugned assessment order at Annexure-A is clearly violation of principles of natural justice and the same along with impugned demand notice and penalty notice deserves to be quashed and the matter is required to be remitted back to respondent No.1 for reconsideration afresh in accordance with law. 5. In the result, pass the following: ORDER (i) The petition is hereby allowed. - 5 - NC: 2024:KHC:38279 WP No. 10816 of 2024 (ii) Impugned assessment order / demand notice / penalty notice at Annexures A, B and C are hereby quashed. (iii) 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 submit replies, responses, pleadings, documents, etc., to respondent No.1, who shall consider the same, provide sufficient and reasonable opportunity to the petitioner and grant him personal hearing and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE RR List No.: 1 Sl No.: 63 "