Sri Niyamathulla Adam Kadermahideen V. National Faceless Assessment Centre and Income Tax Officer Ward 4(3)(1)

WP/20355/2022

AI Insights

The case involves Sri Niyamathulla Adam Kadermahideen, the petitioner, who challenged the assessment order and related penalties issued by the National Faceless Assessment Centre and the Income Tax Officer for the assessment year 2017-18. The petitioner argued that he was not residing at the address mentioned in the impugned orders and was unaware of the proceedings, leading to an ex-parte assessment which violated the principles of natural justice. The respondents contended that the petition lacked merit. The court found that the petitioner was not given a fair opportunity to respond due to the address change and lack of communication from his auditor, leading to the decision to set aside the impugned orders and remit the matter for fresh consideration.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798726 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 16-12-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: THIRUMALESH
• Keywords: Assessment Order; Ex parte assessment; Natural Justice; Penalty order; Writ of Certiorari
• Section: 147; 144; 144B; 272A(1)(d); 271 AAC(1); 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 16TH DAY OF DECEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.20355/2022 (T-IT) BETWEEN: SRI NIYAMATHULLA ADAM KADERMAHIDEEN S/O LATE KHADER MAHIDEEN AGED ABOUT 55 YEARS FLAT NO.B2, 2ND FLOOR AVOOR RESIDENCY NO.269/270, 8TH CROSS AREKERE LAKSHMI LAYOUT BENGALURU-560 076 ...PETITIONER (BY SRI.THIRUMALESH M., ADVOCATE) AND: 1 . NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED BY ADDITIONAL COMMISSIONER OF INCOME TAX NO.412-413, 1ST FLOOR OPP. METRO PILLAR, NO.793 DWARKA MOR, DELHI-110 059 2 . INOCME TAX OFFICER WARD 4(3)(1) BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, 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 FOR THE ASST. YEAR 2017-18 UNDER SECTION 147 READ WITH SECTIONS 144 AND 144B OF THE INCOME TAX ACT PASSED BY THE R-1, NATIONAL FACELESS ASSESSMENT CENTRE, IN ITBA/AST/S/147/2021- 2 22/1041119110(1) ALONG WITH CONSEQUENTIAL DEMAND NOTICE IN ITBA/AST/S/156/2021-22/1041119230(1) AND COMPUTATION SHEET IN ITBA/AST/S/213/2021-22/1041119242(1), ALL DATED 21.03.2022 VIDE ANNX-J, K AND L AND ETC. THIS W.P. COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER In this petition, petitioner has sought for the following reliefs: A) Issue a Writ of Certiorari or a declaration in the nature of Writ of Certiorari quashing the assessment order for the AY 2017-18 under section 147 read with sections 144 and 144B of the Income Tax Act passed by the first Respondent, National Faceless Assessment Centre, in ITBA/AST/S/147/2021- 22/1041119110(1) along with consequential demand notice in ITBA/AST/S/156/2021-22/1041119230(1) and computation Sheet in ITBA/AST/S/213/2021- 22/1041119242(1), all dated 21.03.2022 – ANNEXURES – J, K & L. B) Issue a Writ of Certiorari or a declaration in the nature of Writ of Certiorari quashing the penalty order for the AO 2017-18 under section 272A(1)(d) of the Income Tax Act passed by the second respondent in ITBA/PNL/S/272A(1)(d)/2022-23/1045620018(1) along with consequential demand notice in ITBA/PNL/S/156/2022-23/1045619997(1) and Computation Sheet in ITBA/PNL/S/992/2022- 23/1045550860(1), all dated 16.09.2022 – ANNEXURES – Q, R & S. 3 C) Issue a Writ of Certiorari or a declaration in the nature of Writ of Certiorari quashing the penalty order for the AO 2017-18 u/s 271 AAC(1) of the Income Tax Act passed by the second Respondent in ITBA/PNL/F/271AAC(1)/2022-23/1045981853(1) along with consequential demand notice in ITBA/PNL/S/156/2022-23/1045981644(1) and computation sheet in ITBA/PNL/S/992/2022- 23/1045887757(1), all dated 26.09.2022 – ANNEXURES- T,U AND V; D) And grant such other relief or reliefs as this Hon’ble Court may deem fit in the circumstances of the case, in the interest of justice.” 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 as he was not residing in the address mentioned in the impugned order, he could not submit his reply to the notice issued under Section 148 of the Income Tax Act, 1961 (for short “the I.T. Act”), notices dated 12.11.2021, 17.12.2021 and 03.01.2022 and also to 4 the show cause notice dated 22.02.2022 issued by the respondents. Learned counsel further submits that the petitioner was not even informed by his auditor and hence, he was not aware of the proceedings initiated by the respondents. Thereafter, the respondents proceeded to pass the impugned ex-parte 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 even though he was not aware of the proceedings initiated by the respondents due to change of address before passing the impugned order and there was no information to the petitioner by his auditor, he could not submit his reply, consequent upon which the respondents proceeded to pass the impugned ex-parte assessment order, which is violative of principles of natural justice. In view of the aforesaid facts and circumstances, without 5 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 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 at Annexure-J dated 21.03.2022, the impugned Demand Notice at Annexure-K dated 21.03.2022, the impugned Computation Sheet at Annexure-L dated 21.03.2022, the impugned Penalty Order at Annexure- Q dated 16.09.2022, the impugned Demand Notice at Annexure-R dated 16.09.2022, the impugned Computation Sheet at Annexure-S dated 16.09.2022, the impunned Penalty Order at Annexuer-T dated 26.09.2022, the impugned Demand Notice at annexure-U dated 26.09.2022 and the impugned Computation Sheet at Annexure-V dated 26.09.2022 are hereby set aside 6 (iii) The matter is remitted back to the concerned respondent for reconsideration afresh in accordance with law. (iv) Liberty is reserved in favour of the petitioner to produce additional pleadings, documents etc., before concerned respondent, who shall provide the petitioner an opportunity of personal hearing and proceed further in the matter. Sd/- JUDGE SV/Bmc "