Sri K.V. Madhusudhan Karthik V. Assessment Unit Income Tax Department, Government of India

WP/21629/2022

AI Insights

The case involves Sri K.V. Madhusudhan Karthik, the petitioner, who challenged the assessment order, demand notices, and penalty notices issued by the Income Tax Department for the assessment year 2020-21. The petitioner argued that his responses submitted through the e-filing portal were not considered, and the orders were passed without a personal hearing, violating the principles of natural justice. The respondent contested the merits of the petition. The court found that the respondent had indeed not considered the petitioner's submissions and had not provided a personal hearing, leading to the decision to set aside the impugned orders and remit the matter for fresh consideration.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798754 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 17-11-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: VANI
• Keywords: Assessment Order; Demand notice; E-filing; Natural Justice; Penalty notice; Writ of Certiorari; Writ of Mandamus
• Section: 144; 274; 270A; 144B; 272A(1)(d); 156; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF NOVEMBER, 2022 BEFORE THE HON’BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.21629 OF 2022 (T-IT) BETWEEN: SRI K.V. MADHUSUDHAN KARTHIK S/O SRI VENKATRAMANASWAMY AGED ABOUT 36 YEARS RESIDING AT PLOT NO.98W/2 2ND PHASE, JIGANI INDUSTRIAL AREA JIGANI, BANGALORE-562 106 … PETITIONER (BY SMT.VANI H., ADVOCATE) AND: ASSESSMENT UNIT INCOME TAX DEPARTMENT GOVERNMENT OF INDIA MINISTRY OF FINANCE NORTH BLOCK NEW DELHI-110 001 … RESPONDENT (BY SRI M.DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE IMPUGNED ASSESSMENT ORDER BEARING NO.ITBA/AST/S/144/ 2022- 23/1045873693(1), DTD 23.09.2022 PASSED U/S 144 R/W SECTION 144B OF THE INCOME TAX ACT, 1961 AND THE CONSEQUENTIAL DEMAND NOTICE BEARING NO.ITBA/AST/S/ 156/2022-23/1045873771(1) DTD 23.09.2022 ISSUED U/S 156 OF THE INCOME TAX ACT, 1961 IN RESPECT OF ASSESSMENT YEAR 2020-21 VIDE ANNEXURE-C AND D AND ETC. THIS PETITION COMING ON FOR ORDERS 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 or a writ in the nature of certiorari to set aside the impugned assessment order bearing No.ITBA/AST/S/144/2022- 23/1045873693(1) dated 23.09.2022 passed under Section 144 read with Section 144B of the Income Tax Act, 1961 and the consequential demand notice bearing No.ITBA/AST/S/156/2022-23/1045873 771(1) dated 23.09.2022 issued under Section 156 of the Income Tax Act, 1961 in respect of assessment year 2020-21 vide ANNEXURE-C and ANNEXURE-D, b) Issue a writ of Certiorari or a writ in the nature of certiorari to set aside the penalty notices even dated 23.09.2022 bearing Nos.ITBA/PNL/S/270A/2022- 23/1045873931(1) and ITBA/PNL/S/272A (1)(d)_FL/2022-23/1045870696(1) issued under Section 274 read with Section 270A and Section 272A(1)(d) of the Act in respect of assessment year 2020-21 vide ANNEXURE-E and ANNEXURE-F. c) Issue a writ of Mandamus or a direction in the nature of mandamus directing the Respondent to afford reasonable opportunity to Petitioner to file reply, submit documents and to pass the appropriate order in accordance with law by 3 considering the replies and documents submitted by petitioner and d) Issue such other order and further reliefs as deemed fit by this Hon’ble Court, in the interest of justice and equity. 2. Heard learned counsel for the petitioner, learned counsel for the petitioner, 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 material on record, learned counsel for the petitioner submits that despite submitting reply through e-filing portal on 13.09.2022 to the show cause notice issued by the respondent dated 05.09.2022, the respondent has not considered the said request made by the petitioner, proceeded to pass impugned assessment order, the impugned demand notices and the impugned penalty notices and which is violative of principles of natural justice and as such, the petitioner is before this Court by way of the present petition. 4 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 reply dated 13.09.2021 was submitted by the petitioner to show-cause notice dated 05.09.2022 issued by the respondent on through e-filing portal, without providing an opportunity of personal hearing to the petitioner as stated supra, was not considered by the respondents, who proceeded to pass the impugned assessment order and the penalty notices, which are violative of principles of natural justice. In view of the aforesaid facts and circumstances, without expressing any opinion on the 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, the penalty notices and the demand notices and by giving certain directions to the concerned respondents. 6. In the result, I pass the following: 5 ORDER (i) The petition is hereby allowed. (ii) The impugned assessment order dated 11.09.2021 and the consequential demand notice dated 23.09.2022, penalty notices both dated 23.09.2022 passed by respondent No.1 vide Annexures-C, D, E and F respectively are 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, objections etc., before the respondent, who in turn shall provide the petitioner an opportunity of personal hearing. SD/- JUDGE PKS/Bmc "