WELLNEST INDIA PROJECTS PRIVATE LIMITED V. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX

WP/22494/2021

AI Insights

The case involves Wellnest India Projects Private Limited, which filed a writ petition against the Income Tax Department, challenging an ex-parte assessment order and related notices for the assessment year 2018-19. The petitioner argued that due to a defunct email address, they were unaware of any communications or notices from the respondents, leading to their inability to respond or provide necessary documents, thus violating the principles of natural justice. The court found merit in the petitioner's arguments, noting the lack of knowledge about the proceedings due to the inoperative email, and set aside the assessment order, remitting the case for fresh consideration.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 754248 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-12-2021
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: T SURYANARAYANA
• Keywords: Ex parte order; Principles of natural justice; Quash assessment order; Defunct email; Inoperative email
• Section: 144

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 23RD DAY OF DECEMBER, 2021 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.22494 OF 2021 (T-IT) BETWEEN: WELLNEST INDIA PROJECTS PRIVATE LIMITED PROPERTY NO 4/1, HOTEL TRIBUVAN 4TH FLOOR, 5TH MAIN GANDHINAGAR, BANGALORE -560 009 REP. HEREIN BY ITS DIRECTOR MR SIDDAIAH PURUSHOTHAM …PETITIONER (BY SRI T.SURYANARAYANA, SENIOR COUNSEL FOR SMT.TANMAYEE RAJKUMAR, ADVOCATES) AND: 1. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER NATIONAL E- ASESSEMNT CENTRE ROOM NO.401, 2ND FLOOR E-RAMP JAWARLAL NEHRU STAUDIUM DELHI -110 003 2. INCOME TAX OFFICER WARD 7(1)(3), BANGALORE BMTC BUIDLING , 6TH BLOCK 80 FEET ROAD, KORAMANGALA BANGALORE 560 095 3. THE PRINCIPAL COMMISISONER OF INCOME TAX -2 BMTC BUILDING, 6TH BLOCK 80 FEET ROAD, KORAMANGALA BANGALORE 560 095 …RESPONDENTS (BY SRI K.V.ARAVIND, ADVOCATE) 2 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED 19.04.2021 PASSED BY THE R1 U/S 144 OF THE ACT FOR THE ASSESSMENT YEAR 2018-19 ANNEXURE-D AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER In this petition, petitioner seeks quashing of the impugned assessment order at Annexure-D dated 19.04.2021 and for other reliefs. 2. Heard Sri.T.Suryanarayana, learned Senior counsel for the petitioner, learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the documents produced by the petitioner, learned senior counsel for the petitioner submits that all correspondence including notices etc., issued to the petitioner by the respondents were being sent to the email furnished by the petitioner. However, the said email and contact became inoperative resulting in the petitioner not being aware of any communication / email 3 sent to the said email addresses including any notices sent by the respondents. Under these circumstances, the notices dated 13.04.2021, 15.04.2021 and 19.04.2021 issued by the respondents in the name of the petitioner and sent to the defunct / inoperative email address did not come to the knowledge or attention of the petitioner who was neither aware of the same nor had the occasion or opportunity to reply to the said notices issued by the respondents. Under these circumstances, the petitioner could not reply nor furnish the details to the respondents as called for in their notices and consequently, in view of the inability and omission on the part of the petitioner to submit objections and furnish details and documents due to bonafide reasons, unavoidable circumstances and sufficient cause, since the petitioner had no knowledge or information about the notices sent to the defunct / inoperative email address, the respondents have proceeded to pass the impugned ex-parte assessment order, which is violative of principles of natural justice. (i) It is further submitted that the petitioner had no knowledge even about the impugned assessment order 4 dated 19.04.2021 and the petitioner came to know about the proceedings and the impugned order only subsequently in November 2021, when he received a phone call from an official of the respondents, pursuant to which, the petitioner has filed the present petition. (ii) It is therefore contended that the impugned assessment order passed by the respondents without giving sufficient or reasonable opportunity to the petitioner is violative of principles of natural justice and the same deserves to be quashed and the matter may be remitted back to the respondents for reconsideration afresh after giving an opportunity to the petitioner and considering his objections, documents and hearing him in accordance with law. 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 senior counsel for the petitioner, the material on record indicates that on account of the defunct / inoperative email address, 5 the petitioner did not have any knowledge of any correspondence addressed by the respondents to the said email address which had become defunct and inoperative resulting in the petitioner not being in a position to suitably reply to any of the notices issued by the respondents and file his objections, documents, details, particulars etc., as sought for by the respondents. It is clear that on account of the inability and omission on the part of the petitioner to file his objections and produce documents etc., due to bonafide reasons, unavoidable circumstances and sufficient cause, the respondents have proceeded to pass the ex-parte impugned order, which deserves to be set aside and the matter be remitted back to the respondents for reconsideration afresh after giving one more opportunity to the petitioner. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned assessment order dated 19.04.2021 at Annexures-D; the impugned Demand notice 6 dated 19.04.2021 at Annexure-E; the impugned notice for penalty dated 19.04.2021 at Annexure-F; the impugned notice for penalty dated 15.04.2021 at Annexure-G and the impugned notice for penalty dated 19.04.2021 at Annexure- H, all issued by the 1st respondent are hereby quashed. (iii) The matter is remitted back to respondent No.1 – Assessment Officer for re-consideration afresh and by affording an opportunity to the petitioner to file objections and documents by giving him personal hearing in the matter in accordance with law. SD/- JUDGE Srl. "