VMAKS Builders Pvt. Ltd. V. The Deputy Commissioner of Income Tax, Central Circle 2(2), Bangalore and The Tax Recovery Officer (Central), Bangalore and The Income Tax Officer, Ward 7(1)(3), Bangalore and Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Income Tax Department, New Delhi

WP/13125/2024

AI Insights

The case involves multiple writ petitions filed by VMAKS Builders Pvt. Ltd. against various income tax authorities, challenging the assessment orders issued for different assessment years. The petitions were consolidated due to the similarity in contentions and the fact that they pertained to different periods but involved the same assessee. The primary grievance was the attachment of bank accounts while the appeals were still pending before the Commissioner of Income Tax (Appeals). The court considered the submissions that the appeals could be disposed of within six months and that the attachments would be subject to the final results of these appeals.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 805378 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-06-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: SANDEEP HUILGOL
• Keywords: Appeal; Assessment Order; Bank Account Attachment; Income Tax; Writ petition
• Section: 147; 143(3); 226

Judgement Text

" - 1 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 13125 OF 2024 (T-IT) C/W WRIT PETITION NO. 12792 OF 2024 (T-IT), WRIT PETITION NO. 12869 OF 2024 (T-IT), WRIT PETITION NO. 13941 OF 2024 (T-IT) IN WP NO. 13125/2024 BETWEEN: VMAKS BUILDERS PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO. 1(123), 14TH MAIN, 16TH 'B' CROSS, 3RD BLOCK, JAYANAGAR EAST, BENGALURU - 560 011, REPRESENTED HEREIN BY ITS MANAGING DIRECTOR, MR. R. MAHESH BABU. ALSO AT : R/O 18 AND 19, CHITHRITHA NILAYA, 5TH MAIN, GNANAJYOTHI NAGAR, MALLATHAHALLI, BANGALORE - 560 056. …PETITIONER (BY SRI. SANDEEP HUILGOL.,ADVOCATE) Digitally signed by V KRISHNA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 AND: 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), BANGALORE, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 2. THE TAX RECOVERY OFFICER, (CENTRAL), BENGALURU, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 3. THE INCOME TAX OFFICER, WARD 7(1)(3), BENGALURU, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. 4. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, ROOM NO. 245-A, NORTH BLOCK, NEW DELHI - 110 001. …RESPONDENTS (BY SRI. M. DILIP, JR. STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 23.04.2021 ISSUED ON 23.04.2021 BEARING DIN NO. ITBA/AST/S/143(3)/2021- 22/1032641467(1) PASSED BY THE R-1 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 FOR THE AY 2018-19 (ANNEXURE 'A-1') AND ETC., - 3 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 IN WP NO. 12792/2024 BETWEEN: VMAKS BUILDERS PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO. 1(123), 14TH MAIN, 16TH 'B' CROSS, 3RD BLOCK, JAYANAGAR EAST, BENGALURU - 560 011, REPRESENTED HEREIN BY ITS MANAGING DIRECTOR, MR. R. MAHESH BABU. ALSO AT: R/O 18 AND 19, CHITHRITHA NILAYA, 5TH MAIN, GNANAJYOTHI NAGAR, MALLATHAHALLI, BANGALORE - 560 056. …PETITIONER (BY SRI. SANDEEP HUILGOL., ADVOCATE) AND: 1. THE INCOME TAX OFFICER, WARD 7(1)(3), BENGALURU, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 047. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 2(2), BANGALORE, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. - 4 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 3. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE (7)(1)(2), BENGALURU BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. 4. THE TAX RECOVERY OFFICER (CENTRAL), BENGALURU, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 5. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, ROOM NO. 245-A, NORTH BLOCK, NEW DELHI - 110 001. …RESPONDENTS (BY SRI. M. DILIP, JR. STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 31/12/2019 ISSUED ON 13/01/2020 BEARING DIN NO. ITBA/AST/S/143(3)/2019- 20/1023542528(1) PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961, FOR ASSESSMENT YEAR 2017-18 (ANNEXURE-A1) AND ETC., IN WP NO. 12869/2024 BETWEEN: VMAKS BUILDERS PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO. 1(123), 14TH MAIN, 16TH 'B' CROSS, 3RD BLOCK, JAYANAGAR EAST, - 5 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 BENGALURU - 560 011, REPRESENTED HEREIN BY ITS MANAGING DIRECTOR, MR. R. MAHESH BABU. ALSO AT: R/O 18 AND 19, CHITHRITHA NILAYA, 5TH MAIN, GNANAJYOTHI NAGAR, MALLATHAHALLI, BANGALORE - 560 056. …PETITIONER (BY SRI. SANDEEP HUILGOL.,ADVOCATE) AND: 1. THE INCOME TAX OFFICER, WARD 7(1)(3), BENGALURU, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 047. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 2(2), BANGALORE, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 3. THE TAX RECOVERY OFFICER (CENTRAL), BENGALURU, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 4. PRINCIPAL COMMISSIONER OF INCOME TAX-7 BANGALORE, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. - 6 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 5. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, ROOM NO. 245-A, NORTH BLOCK, NEW DELHI - 110 001. …RESPONDENTS (BY SRI. M. DILIP, JR. STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 31.12.2019 BEARING NO DIN NUMBER, PASSED BY RESPONDENT NO. 1 UNDER SECTION 143(3) READ WITH SECTION 147 OF THE INCOME-TAX ACT 1961 FOR THE SUBJECT AY 2013-14 (ANNEXURE A-1) AND ETC., IN WP NO. 13941/2024 BETWEEN: VMAKS BUILDERS PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO. 1(123), 14TH MAIN, 16TH 'B' CROSS, 3RD BLOCK, JAYANAGAR EAST, BENGALURU - 560 011, REPRESENTED HEREIN BY ITS MANAGING DIRECTOR, MR. R. MAHESH BABU. ALSO AT R/O 18 AND 19, CHITHRITHA NILAYA, 5TH MAIN, GNANAJYOTHI NAGAR, MALLATHAHALLI, BANGALORE - 560 056. …PETITIONER (BY SRI. SANDEEP HUILGOL.,ADVOCATE) - 7 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 AND: 1. THE INCOME TAX OFFICER, WARD 7(1)(3), BENGALURU, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 047. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 2(2), BANGALORE, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 3. THE TAX RECOVERY OFFICER (CENTRAL), BENGALURU, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 4. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, ROOM NO. 245-A, NORTH BLOCK, NEW DELHI - 110 001. …RESPONDENTS (BY SRI. M. DILIP, JR. STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 21.09.2021 ISSUED ON 21.09.2021 BEARING DIN NO. ITBA/AST/S/144/2021- 22/1035760673(1) PASSED BY R-2 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 FOR AY 2019-20 (ANNEXURE-A1) AND ETC., THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: - 8 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 ORDER The I.A.s for impleading applicant filed in W.P.Nos.12792/2024 and 12869/2024 are allowed. Learned counsel Sri. M. Dilip accepts notice for the proposed impleading applicant. Necessary amendment to be carried out. 2. The I.A.s for dispensation filed in W.P.Nos.12792/2024, 12869/2024 and 13125/2024 are allowed. The petitioner is dispensed with production of documents as mentioned in the application. 3. W.P.Nos.13941/2024, 12869/2024, 12792/2024 and 13125/2024 relate to the same assessee and in light of the similar contentions raised, all these petitions are taken up together and disposed off by a common order. The writ petitions of the same assessee relate to different periods as follows: - 9 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 W.P.No.13941/2024 2019-20 W.P.No.12869/2024 2013-14 & 2014-15 W.P.No.12792/2024 2017-18 W.P.No.13125/2024 2018-19 4. The petitioners in these writ petitions have sought for setting aside of the assessment orders for the relevant period, computation sheet, notice of demand, penalty order, penalty computation sheet, penalty demand notice, demand notices and recovery notice. 5. At the time of hearing of the matter, it is submitted that appeals have been filed and are pending consideration before the Commissioner of Income Tax (Appeals). It is submitted that the grievance relates to the attachment of the bank accounts while appeals are still not disposed off. It is submitted that the grievance would stand redressed if the appeals are directed to be disposed off within a reasonable period of time. - 10 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 6. Learned counsel for the revenue submits that partial recovery has been made pursuant to order of attachment and same would be subject to adjustment depending on the final result of the appeals. It is further submitted that appeals in all these matters could be disposed off within a period of six months from the date of receipt of certified copy of this order. 7. It is further submitted by counsel for the revenue that the attachment thereafter has been withdrawn. Said submission is taken note of. 8. In light of the stand taken by the revenue and the undertaking that appeals will be disposed off within six months as noticed above, the petitions are disposed while taking note of the stand of the respondents. 9. The respondents are restrained from taking further precipitative steps henceforth, while clarifying that - 11 - NC: 2024:KHC:20693 WP No. 13125 of 2024 C/W WP No. 12792 of 2024 WP No. 12869 of 2024 WP No. 13941 of 2024 the attachment already made would stand undisturbed and would be subject to final outcome of the appeal. Accordingly, the petitions are disposed off. All contentions are kept open. Sd/- JUDGE MCR "