SRI SRIGANDHA SOUHARDHA CREDIT V. THE UNION OF INDIA

WP/8045/2022

AI Insights

The case involves Sri Srigandha Souharda Credit Co-operative Limited, represented by its CEO, challenging the assessment order and demand notice issued by the Income Tax Department for the assessment year 2017-18. The petitioner argued that their detailed response to a show cause notice was not considered by the assessing authority, leading to a violation of the principles of natural justice. The respondents contended that the petition lacked merit. The court found that the assessing authority did not adequately consider the petitioner's submissions, leading to the decision to set aside the orders and remand the case for a fresh assessment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 722184 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-09-2022
• 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: RAJEEV NULVI
• Keywords: Assessment Order; Income Tax; Natural Justice; Non-speaking order; Writ of Certiorari
• Section: 147; 144; 144B; 156; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF SEPTEMBER, 2022 BEFORE THE HON’BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.8045 OF 2022 (T-IT) BETWEEN SRI SRIGANDHA SOUHARDHA CREDIT CO-OPERATIVE LIMITED A REGISTERED SOUHARDHA CO-OPERATIVE SOCIETY HAVING ITS REGISTERED OFFICE AT NO.107/3, 2ND FLOOR 1ST BLOCK RAJAJINAGAR, BANGALORE 560010 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER SMT. G.R.PUSHPAVATHY D/O LATE R.RANGAPPA …PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI., ADV.) AND 1. THE UNION OF INDIA REPRESENTED BY ITS JOINT SECRETARY MINISTRY OF FINANCE AND DEPARTMENT OF REVENUE (INCOME TAX DEPARTMENT) ROOM NO.46, NORTH BLOCK NEW DELHI, DELHI 110001 2. THE NATIONAL FACELESS ASSESSMENT CENTRE NORTH BLOCK MINISTRY OF FINANCE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME-TAX OFFICER 2 NEW DELHI, DELHI 110001 3. INCOME TAX OFFICER WARD-2(2)(2) BMTC BUILDING 80 FEET ROAD 6TH BLOCK, KORMANGALA BANGALORE 560095 …RESPONDENTS (BY SRI E.I.SANMATHI, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ASSESSMENT ORDER U/S 147 R/W SECTION 144 R/W SECTION 144B OF THE INCOME TAX ACT, 1961 DTD 09.03.2022 ALONG WITH COMPUTATION SHEET VIDE DTD 09.03.2022 AND DEMAND NOTICE U/S 156 OF THE INCOME TAX ACT, 1961 VIDE DTD 09.03.2022, PASSED BY THE R2 AUTHORITY, PERTAINING TO ASSESSMENT YEAR 2017-18 VIDE ANNEXURE-A, A1 AND A2 RESPECTIVELY. THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this writ petition, the petitioner has sought for the following reliefs: (a) To issue a writ of certiorari, quashing the assessment order u/s 147 read with section 144 read with section 144B of the Income Tax Act, 1961 vide DIN No.ITBA/AST/S/147/2021- 22/1040521545(1) dated 09.03.2022 along with computation sheet vide DIN 3 No.ITBA/AST/S/215/2021-22/1040521652(1) dated 09.03.2022, and demand notice u/s 156 of the Income Tax Act, 1961 vide DIN No.ITBA/AST/S/156/2021-22/1040521621(1) dated 09.03.2022, passed by respondent No.2 authority, pertaining to Assessment Year 2017- 18 vide Annexure-A, A-1 & A-2, respectively; and (b) To pass any such other writ, order or direction as this Hon'ble court might deem fit to be issued in the fact and circumstances of the case in the interest of justice and equity.\" 2. Heard the learned counsel for the petitioner and also the learned counsel for the respondents and perused the material on record. 3. The material on record discloses that pursuant to the show cause notice dated 04.03.2022 issued by respondent No.2, the petitioner submitted his reply dated 08.03.2022 along with all relevant documents. It is the grievance of the petitioner that despite the submission of a detailed response/reply/submission along with relevant documents to the show cause notice (Supra), 4 respondent No.2 – Authority has proceeded to pass the impugned order dated 09.03.2022 without considering or appreciating the submissions and the documents produced by the petitioner along with his submission/reply dated 08.03.2022. 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 the same is liable to be dismissed. 5. As rightly contended by the learned counsel for the petitioner, a perusal of the impugned order at Annexure-A will indicate that despite the petitioner's submitting a detailed response dated 08.03.2022 along with relevant documents, the same has been neither considered nor appreciated by respondent No.2, which is a non-speaking, unreasoned and laconic order without any application of mind and 5 consequently being violative of principles of natural justice, the same deserves to be set aside and the matter remitted back to respondent No.2-Authority for reconsideration afresh in accordance with law after providing an opportunity of personal hearing to the petitioner. 6. In the result, the writ petition is allowed. The impugned orders dated 09.03.2022 passed by respondent No.2 vide Annexures-A, A1 & A2 are hereby set aside. The matter is remitted back to respondent No.2 for reconsideration afresh in accordance with law after considering the response/submission dated 08.03.2022 submitted by the petitioner and the documents annexed thereto and after providing an opportunity of personal hearing to the petitioner. 6 Liberty is reserved in favour of the petitioner to produce additional pleadings or documents before respondent No.2 who shall consider the same and proceed further in accordance with law. Sd/- JUDGE ssb "