Sri Ranganatha Timber Depot rep. by Partner Sri Ranganatha V. National E Assessment Centre and Income Tax Officer, Ward 6(2)(4), Bengaluru

WP/12522/2021

AI Insights

The case involves Sri Ranganatha Timber Depot, represented by its partner, challenging the validity of an assessment order and a demand notice issued by the National E-Assessment Centre and the Income Tax Officer, Ward 6(2)(4), Bengaluru. The petitioner contested the assessment order under Section 143(3) read with Sections 143(3A) and 143(3B) of the Income Tax Act, 1961, dated 08.04.2021, for the assessment year 2018-19. The petitioner argued that the time provided to respond to the show cause notice was inadequate, especially considering the circumstances of the COVID-19 pandemic. The court found merit in the petitioner's argument regarding the insufficient time to respond and directed that the information requested by the petitioner should be provided to enable an effective reply to the show cause notice.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 817240 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 21-01-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: SHREEHARI K
• Keywords: Assessment Order; Covid-19 pandemic; Demand notice; Show cause notice; Tax Evasion; Writ petition
• Section: 144; 143(3); 142(1); 143(3A); 143(3B); 156

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF JANUARY, 2022 BEFORE THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.12522/2021 (T-IT) BETWEEN: SRI RANGANATHA TIMBER DEPOT REP. BY PARTNER SRI RANGANATHA NO.22, 3RD MAIN ROAD, B.K. NAGAR, YESHWANTHAPUR BENGALURU - 560 022. … PETITIONER (BY SRI SHREEHARI K., ADVOCATE) AND: 1. NATIONAL E ASSESSMENT CENTRE ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM DELHI - 110 003. 2. INCOME TAX OFFICER, WARD 6(2)(4), BENGALURU BMTC BUILDING 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA BENGALURU - 560 095. … RESPONDENTS ( BY SRI E.I. SANMATHI, ADVOCATE) 2 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) R.W.S. 143(3A) AND 143(3B) OF THE INCOME TAX ACT 1961 DATED 08.04.2021 ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2018-19 WHICH IS ENCLOSED AS ANNEXURE-A AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT, MADE THE FOLLOWING: ORDER Petitioner has challenged the validity of the assessment order passed under Section 143(3) read with Section 143(3A) of the income Tax Act, 1961 (for short \"the Act\") dated 08.04.2021 issued by respondent No.1 for the assessment year 2018-19. Petitioner has also sought for issuance of writ of certiorari seeking quashing of demand notice issued under Section 156 of the Act, copy of which is enclosed at Annexure-B. 2. Petitioner would submit that notice under Section 143(2) of the Act came to be issued as per Annexure-D dated 27.09.2019 and the said notice provides that the proceedings were initiated on the basis of \"specific information pointing tax evasion has been received from other agency\". It is further submitted that another notice 3 under Section 142(1) of the Act came to be issued on 06.02.2021. Petitioner submits that he made out a reply as per Annexure-F seeking for information that is in the hands of the assessing authority and had requested for furnishing of such information in order to enable him to make out a reply. 3. It is further submitted that another show cause notice dated 30.03.2021 came to be issued under Section 144 of the Act dated 30.03.2021. The time fixed for making out a reply to this show cause notice was 01.04.2021. The petitioner submits that as per the letter at Annexure-H, further request was made by the petitioner seeking for information sought to be used against the petitioner to enable him to reply to the said show cause notice. Further request was also made as per the letter at Annexure-J. 4. Learned counsel for the revenue submits that sufficient opportunity was granted. However, the assertion of the petitioner that there appears to have been very limited time afforded to reply to the show cause notice 4 dated 30.03.2021 insofar as the reply was to be made out by 01.04.2021, has not been controverted with any legally acceptable argument. 5. Having heard the learned counsel for both sides, in light of the time afforded for reply to the show cause notice, clearly, the time prescribed is inadequate. Considering the conditions of Covid-19 pandemic, in order to avoid further unnecessary litigation once the matter is resumed, it would be appropriate to direct that the request of the petitioner for information relied upon by the Assessing Authority as reproduced in the show cause notice is required to be considered as per law. 6. Petitioner submits that the conclusion arrived at in the show cause notice pointing out to various transactions as is evident from the averments in paragraph No.4.3 of the show cause notice is such that, for an effective reply, petitioner requires to be furnished with underlying information on the basis of which observations were made in the show cause notice at various paragraphs 5 as against the assessee including at paragraph No.4.3. In light of the same, in the event the request is made by the petitioner to enable him to make an effective reply to the show cause notice, material that is available with the authority that could be shared as is permissible under law is to be furnished upon consideration of the request of the petitioner. 7. Accordingly, the matter is relegated to the Assessing Officer to the stage of reply to show cause notice to be furnished by the assessee. The request of the petitioner for information on the basis of which proceedings were initiated against the assessee is to be considered as per law in light of the discussions made above. 8. Accordingly, the petition is allowed. The assessment order at Annexure - A is set aside so also the demand notice at Annexure-B is set aside. Sd/- JUDGE VP "