Sri. Nithin Nagaraj Reddy V. Assessment Unit, Faceless Assessment Centre and National Faceless Assessment Centre and Jurisdictional Assessing Officer, Income Tax Officer, Ward-6(3)(4) and Principal Commissioner of Income Tax-6

WP/17026/2024

AI Insights

The case involves Sri. Nithin Nagaraj Reddy, the petitioner, who challenged an assessment order passed by the Income Tax Department for the Assessment Year 2022-23. The petitioner argued that he was not given adequate time to provide necessary bank account details due to the merger of Andhra Bank with Union Bank of India, which complicated the procurement of required documents. The High Court of Karnataka found that the assessment was concluded without considering the petitioner's reasonable request for additional time, thus meriting a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799642 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: NAGHARISH
• Keywords: Assessment Order; Documentary evidence; Faceless assessment; Income Tax; Writ petition; Request for Adjournment
• Section: 143(3); 144B; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:26998 WP No. 17026 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 17026 OF 2024 (T-RES) BETWEEN: SRI. NITHIN NAGARAJ REDDY, S/O SRI. T.C. NAGARAJA, AGED ABOUT 30 YEARS, R/AT NO. 304, VISHNU RESIDENCY, THUBARAHALLI, VARTHUR MAIN ROAD, BANGALORE 560 037 …PETITIONER (BY SRI. NAGHARISH G.S., ADVOCATE) AND: 1. ASSESSMENT UNIT, FACELESS ASSESSMENT CENTRE NORTH BLOCK, NEW DELHI 110 001 REP. BY ASSESSING OFFICER 2. NATIONAL FACELESS ASSESSMENT CENTRE, NO. 412-413, 1ST FLOOR, OPP. METRO PILLAR NO. 793, DWARKA MOR, NEW DELHI 110 059, REP. BY ASSESSING OFFICER Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:26998 WP No. 17026 of 2024 3. JURISDICTIONAL ASSESSING OFFICER, INCOME TAX OFFICER, WARD -6(3)(4) BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BANGALORE 560 095 4. PRINCIPAL COMMISSIONER OF INCOME TAX -6 BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BANGALORE 560 095 …RESPONDENTS (BY SRI. SUSHAL TIWARI, ADVOCATE) …….. THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE BEST JUDGMENT ASSESSMENT ORDER DATED 12.03.2024 BEARING NO. ITBA/AST/S/143(3)/2023-24/1062452968(1) ANNEXURE-K PASSED FOR THE AY 2022-23 PASSED BY THE R-1 AND REMAND THE MATTER BACK FOR FRESH ADJUDICATION IN ACCORDANCE WITH THE PROCEDURE U.S 144B OF THE IT ACT AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2024:KHC:26998 WP No. 17026 of 2024 ORDER 1. The petitioner has sought for setting aside the assessment order dated 12.03.2024 at Annexure-K passed for the Assessment Year 2022-23 and to remand the matter back for fresh adjudication in accordance with procedure under 144-A of the Income Tax Act, 1961. 2. The case of the petitioner is that during the course of the assessment proceedings, show-cause notice came to be issued on 21.02.2024 directing compliance by 28.02.2024. It is submitted that though some information was given, request was made in terms of Annexure-J5 seeking for an additional two weeks time to complete details regarding the details of the bank account related to an account from Andhra Bank, which subsequently was merged with Union Bank of India. Further, request was made to the Bank to provide the account statement for the relevant financial year which pertains to a time period beyond ten years and procurement of statements required - 4 - NC: 2024:KHC:26998 WP No. 17026 of 2024 additional time. However, it is submitted that the assessment proceedings itself were concluded as on 12.03.2024. It is submitted that the request for adjournment has not been considered despite the reasonableness of such request. Taking note that the assessment order is passed on 12.03.2024 and the request at Annexure-J5 having been made on 20th February 2024, further time as requested ought to have been granted in light of the assertion made regarding merger of Andhra Bank with Union Bank of India. 3. The assessment order clearly proceeds on the premise that the petitioner has failed to furnish documentary evidence. In the light of the same, it would meet the ends of justice in affording an opportunity to the petitioner to furnish necessary details as made out in their request at Anenxure-J5. 4. Accordingly, Writ Petition is allowed and order at Annexure-K is set aside. Matter is remitted for fresh consideration. Petitioner to make out the necessary details upon appearing before the Assessing Officer. - 5 - NC: 2024:KHC:26998 WP No. 17026 of 2024 All other contentions are kept open. The matter is relegated as observed above. Sd/- JUDGE BNV ct-snn/List No.: 1 Sl No.: 16 "