Sri. Yuvaraj S/O Ramadas V. The Principal Commissioner of Income Tax of Karnataka and Goa and The Assistant Commissioner of Income Tax Central Circle -2(4)

WP/25843/2023

AI Insights

In this case, the petitioner, Sri. Yuvaraj, challenged the assessment order passed by the Assistant Commissioner of Income Tax, which he claimed was made without considering his replies due to unavoidable circumstances. The petitioner sought to quash the order and requested a writ of mandamus to prevent further proceedings based on subsequent orders. The respondents argued that the petition lacked merit. The court, considering the petitioner's circumstances and the principles of natural justice, decided to set aside the assessment order and remit the case back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 674538 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 13-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: MALLAHAR RAO
• Keywords: Assessment Order; Income Tax; Natural Justice; Writ petition; Section 142(1) Notices
• Section: 142(1); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:32504 WP No. 25843 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 25843 OF 2023 (T-RES) BETWEEN: SRI. YUVARAJ S/O RAMADAS, AGED ABOUT 50 YEARS, NO. 161, 8TH MAIN,4TH CROSS, 14TH BLOCK, NAGARABHAVI, BENGALURU-560 071. …PETITIONER (BY SRI. MALLAHAR RAO.,ADVOCATE) AND: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX OF KARNATAKA AND GOA, QUEENS ROAD, BANGALORE-560 001. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -2(4), BENGALURU-560 001. …RESPONDENTS (BY SRI.M DILIP.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE ORDER DTD 30.03.2023 PASSED IN ORDER BEARING NO. ITBA/AST/S/147/2022- 23/1051665403 (1) PASSED BY R-2 VIDE ANNX-A AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by Vandana S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:32504 WP No. 25843 of 2023 CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner has sought for the following reliefs:- “(i) Issue writ of Certiorari or in the like nature of certiorari or in the like nature of Certiorari quashing the order dated: 30.03.2023, passed in order bearing DIN No.: ITBA/AST/S/147/2022-23/1051665403(1), passed by respondent No.2, vide ANNEXURE-A; (ii) Issue a writ of Mandamus or writ of direction to the respondent authorities to refrain from further proceedings in respect of the order dated: 29.09.2023, passed in order bearing DIN No. ITBA/PNL/F/271(1) (C)/2023- 24/1056662677(1), passed by respondent No.2, vide ANNEXURE-B; and order dated: 29.09.2023, passed in order bearing DIN No.: ITBA/PNL/F/271(1)(C)/2023- 24/1056662679(1), passed by respondent No.2, vide ANNEXURE-C. (iii) Issue writ of Prohibition, not to proceed further steps or measure or any such kind of initiatives pertaining to recovery(s), directing the respondent authorities to refrain from further coercive steps against the order dated: 30.03.2023, passed in order bearing DIN No.: ITBA/AST/S/147/2022-23/1051665403(1), passed by respondent No.2., vide Annexure-A; (iv) Pass such other further orders as this Hon’ble Court may deem fit in the facts and circumstances of this case, in the interest of justice and equity.” - 3 - NC: 2024:KHC:32504 WP No. 25843 of 2023 2. Heard learned counsel for the petitioner and learned counsel for the respondents – revenue and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submitted that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not submit his replies along with documents to the notices issued by the respondents under Section 142(1) of the Income Tax Act, 1961, resulting in passing of the impugned Assessment Order dated 30.03.2023 and consequent orders, notices etc., which are violative of principles of natural justice and the same deserve to be set aside. It is submitted that if one more opportunity is provided, the petitioner would submit his replies to the notices under Section 142(1) of the I.T.Act along with documents and as such, the impugned order is to be set aside and the matter be remitted back to the respondents for reconsideration afresh in accordance with law. - 4 - NC: 2024:KHC:32504 WP No. 25843 of 2023 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. A perusal of the material on record will indicate that though several contentions have been urged by both sides, in the light of the specific assertion on the part of the petitioner that his inability and omission to submit reply / response to Section 142(1) notices was due to bonafide reasons, unavoidable circumstances and sufficient cause, in order to provide one more opportunity to the petitioner and by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Assessment Order dated 30.03.2023 at Annexure – A passed by the 2nd respondent is hereby set aside. (iii) Matter is remitted back to the respondents for reconsideration afresh from the stage of submitting replies to the - 5 - NC: 2024:KHC:32504 WP No. 25843 of 2023 Notices under Section 142(1) of the Income Tax, 1961 to proceed further in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit his response / documents, etc., to Section 142(1) Notices, which shall be considered by the respondents, in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Srl. List No.: 1 Sl No.: 72 "