VIKRAM KUMAR JAIN V. INCOME TAX OFFICER

WP/27542/2024

AI Insights

In this writ petition, Vikram Kumar Jain challenged the assessment orders and subsequent penalties imposed by the Income Tax Department for the assessment year 2022-23. The petitioner argued that the orders were passed ex parte as his accountant failed to act upon the notices forwarded to him, leading to the imposition of penalties without a hearing. The respondents defended the validity of the orders and penalties. The court, acknowledging the petitioner's lack of participation due to the accountant's oversight, decided to set aside the orders and remand the case for a fresh assessment, provided the petitioner pays a specified cost.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 671580 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 29-10-2024
• 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: SUDHEENDRA
• Keywords: Assessment Order; Demand notice; Exparte; Income Tax; Penalty; Writ petition
• Section: 143(3); 144B

Judgement Text

" - 1 - NC: 2024:KHC:43518 WP No. 27542 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF OCTOBER, 2024 BEFORE THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO. 27542 OF 2024 (T-IT) BETWEEN: 1. VIKRAM KUMAR JAIN, AGED ABOUT 46 YEARS, S/O MANDANLAL, NO.5 KAMALA KESHAVA, 23RD MAIN , MARENAHALLI, JP NAGAR, 2ND PHASE, BANGALORE-560 018. PAN AA0PJ1631J. …PETITIONER (BY SRI. SUDHEENDRA B.R., ADVOCATE) AND: 1. INCOME TAX OFFICER, WARD 2(2)(3), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU 560 095. 2. PRINCIPAL COMMISSIONER OF INCOME TAX, BANAGALORE -2, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. 3. NATIONAL FACELESS ASSESSMENT CENTRE, REP. BY ADITION/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, Digitally signed by CHAITHANYA K Location: High Court of Karnataka - 2 - NC: 2024:KHC:43518 WP No. 27542 of 2024 INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. …RESPONDENTS (BY SRI. E.I.SANMATHI, ADVOCATE) THIS PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT QUASHING THE ASSESSMENT ORDER PASSED UNDER SEC 143(3) R.W.S 144B DTD 20.03.2024 BEARING DIN ITBA/AST/S/143(3)/2023- 24/1062971961(1) ISSUED BY THE R-3 FOR AY 2022-23 (ANNEXURE-D1) AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.I.ARUN ORAL ORDER 1. The petitioner in the instant writ petition has challenged the assessment orders passed under Section 143(3) of the Income Tax Act, 1961 for the assessment year 2022-23 and the notices of demand and orders of penalty imposed pursuant to the said assessment order. Ground on which the assessment order is challenged is that the petitioner forwarded the notices received to his accountant, but unfortunately the same was not acted - 3 - NC: 2024:KHC:43518 WP No. 27542 of 2024 upon by the accountant, because of which present orders have been passed. It is submitted that the orders have been passed exparte without hearing the petitioner and if an opportunity is given, petitioner would justify how the same is bad in law. 2. Learned counsel for the respondents justifies the impugned orders and demands raised and the penalty imposed on the same and prays for dismissal of the writ petition. 3. Admittedly, the petitioner, under the given peculiar facts and circumstances of the case has not been able to participate in proceedings before respondent No.3 and it is pleaded that if an opportunity is given he would produce the relevant material. Under the given the peculiar facts and circumstances of the case, this Court is of the opinion, interest of justice would be met if an opportunity is given to the petitioner by imposing some cost on him. Hence, the following: - 4 - NC: 2024:KHC:43518 WP No. 27542 of 2024 ORDER i) The impugned Assessment order dated 20.03.2024 bearing DIN ITBA/AST/S/143(3)/2023-24/1062971961(1) issued by respondent No.3 for AY 2022-23 vide Annexure-D1; the impugned computation sheet dated 20.03.2024 bearing DIN ITBA/AST/S/322/2023-24/1062972124(1) issued by respondent No.3 for AY 2022-23 vide Annexure-D2; the impugned notice of demand dated 20.03.2024 bearing DIN ITBA/AST/S/156/2023-24/1062972040(1) issued by respondent No.3 for AY 2022-23 vide Annexure-D3; impugned penalty order dated 13.09.2024 bearing DIN ITBA/PNL/F/270A/2024-25/1068679292(1) issued by respondent No.3 for AY 2022-23 vide Annexure-F1; impugned computation sheet dated 13.09.2024 bearing DIN - 5 - NC: 2024:KHC:43518 WP No. 27542 of 2024 ITBA/PNL/S/270A/2023-24/1062972222(1) issued by respondent No.3 for AY 2022-23 vide Annexure-F2; impugned notice of demand dated 13.09.2024 bearing DIN ITBA/PNL/S/156/2024-25/1068674294(1) issued by respondent No.3 for AY 2022-23 vide Annexure-F3; impugned penalty order dated 17.09.2024 bearing DIN ITBA/PNL/F/271AAC(1)/2024- 25/1068804751(1) issued by respondent No.3 for AY 2022-23 vide Annexure-H1; impugned computation sheet dated 17.09.2024 bearing DIN ITBA/PNL/S/271AAC(1)/2023- 24/1062972223(1) issued by respondent No.3 for AY 2022-23 vide Annexure-H2; impugned notice of demand dated 17.09.2024 bearing DIN ITBA/PNL/S/156/2024-25/1068803751(1) issued by respondent No.3 for AY 2022-23 vide Annexure-H3; impugned penalty order dated 12.09.2024 bearing DIN - 6 - NC: 2024:KHC:43518 WP No. 27542 of 2024 ITBA/PNL/F/272A(1)(d)/2024- 25/1068638750(1) issued by respondent No.3 for AY 2022-23 vide Annexure-K1; impugned computation sheet dated 12.09.2024 bearing DIN 2024202240418590560T issued by respondent No.3 for AY 2022-23 vide Annexure-K2 and impugned notice of demand dated 12.09.2024 bearing DIN ITBA/PNL/S/156/2024-25/1068633642(1) issued by respondent No.3 for AY 2022-23 vide Annexure-K3 to the writ petition are hereby set aside, subject to petitioner paying cost of Rs.25,000/- to the Registrar General, High Court of Karnataka, Bengaluru, within a period of two weeks from today; ii) The matter stands remanded back to respondent No.3 at the stage of reply to notice issued under Section 143(2) of Income Tax Act, 1961 dated 01.06.2023; - 7 - NC: 2024:KHC:43518 WP No. 27542 of 2024 iii) Respondent No.3 shall consider the reply to be filed by the petitioner and thereafter pass appropriate orders in accordance with law; iv) Accordingly, the writ petition is disposed of. In view of disposal of main petition, all pending interlocutory applications, if any, stand disposed of. SD/- (M.I.ARUN) JUDGE PGG "