DR MADHUKAR G ANGUR vs. THE COMMISSIONER OF INCOME TAX

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WP/2911/2023HC KarnatakaKAHC01006778202327 February 2024Author: S.R.KRISHNA KUMAR5 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the petition, setting aside the impugned assessment order dated 31.12.2021 and all consequential orders. The matter was remitted back to the Assistant Commissioner of Income Tax (R-2) for fresh consideration in accordance with law. The Court acknowledged the petitioner's submission that his inability to provide a complete reply was due to bonafide reasons, unavoidable circumstances, and sufficient cause. The Court emphasized that it was not expressing any opinion on the merits or demerits of the rival contentions. All rival contentions between the petitioner, respondents, and impleading applicants, including issues of jurisdiction, were kept open to be decided in appropriate proceedings. The operative direction was to set aside the order and remit the matter for fresh adjudication.

What were the facts?

The petitioner, Dr. Madhukar G Angur, filed a writ petition before the High Court of Karnataka seeking to set aside an assessment order dated 31.12.2021 passed by the Assistant Commissioner of Income Tax (R-2) under Section 153 read with Section 144 of the Income Tax Act. The petitioner contended that due to ongoing litigation concerning the management of M/s. Alliance University, he was unable to provide a complete response with all necessary documents to the Assessing Officer. He requested an opportunity to submit a detailed response. The Revenue argued that the petition lacked merit and that the petitioner had already filed an appeal. The petitioner then agreed to withdraw the appeal.

What were the issues?

1. Whether the assessment order passed by the Assistant Commissioner of Income Tax under Section 153 read with Section 144 of the Income Tax Act, 1961, should be set aside and the matter remitted for fresh consideration? (Question of law and fact) Assessee's contention: The petitioner argued that due to litigation related to the management of M/s. Alliance University, he could not submit a complete response and documents to the Assessing Officer, necessitating a fresh opportunity. The petitioner relied on the principle of providing an opportunity when there are bonafide reasons and sufficient cause for non-compliance. Revenue's contention: The Revenue contended that the writ petition lacked merit and should be dismissed. They also pointed out that the petitioner had already filed an appeal against the assessment order, making the present writ petition inappropriate.

Which sections of the Income-tax Act were involved?

Section 153,Section 144

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:8062 WP No. 2911 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 2911 OF 2023 (T-IT) BETWEEN: DR. MADHUKAR G ANGUR AGED ABOUT 64 YEARS S/O LATE GUDAPPA ANGUR FLAT No.03, G-BLOCK, MANTRI ESPANA NEAR SAKRA WORLD HOSPITAL OUTER RING RAOD, KARIYAMMANA AGRAHARA BELLANDUR, BANGALORE - 560 103. …PETITIONER (BY SRI SHREEHARI KUTSA, ADVOCATE) AND: 1. THE COMMISSIONER OF INCOME TAX HMT BHAWAN GST COMMISSIONERATE BLOCK 59, HMT BHAVAN, 3RD FLOOR, BALLARI ROAD DENA BANK COLONY, GANGANAGAR, 59 DENA BANK COLONY, ARMANE NAGAR BENGALURU KARNATAKA - 560 032. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE (2) (4) BANGALORE HMT BHAWAN GST COMMISSIONERATE BLOCK 59, HMT BHAVAN, 3RD FLOOR, BALLARI ROAD DENA BANK COLONY, GANGANAGAR, 59 DENA BANK COLONY, ARMANE NAGAR BENGALURU, KARNATAKA - 560 032. …RESPONDENTS (BY SRI E I SANMATHI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSITITUTION OF INDIA PRAYING TO SET ASIDE THE ORDERS DATED 31/12/2021 PASSED BY THE R-2 I.E., LD. ASSISTANT COMMISSIONER INCOME TAX, CENTRAL CIRCLE (2)(4), BANGALORE, U/S 153 R.W.S 144 OF THE INCOME TAX ACT AND DIRECT THE R-2 TO CONDUCT AN Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:8062 WP No. 2911 of 2023 ENQUIRY AFRESH VALIDITY OF THE ORDER PASSED BY THE R-2 WITH RESPECT TO THE ASSESSMENT ORDER PASSED BY THE R-2. THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

In this petition, petitioner seeks quashing of the impugned assessment order at Annexure-B1 dated 31.12.2021 and for other reliefs.

2.

Heard learned counsel for the petitioner and learned counsel for respondents and perused the material on record.

3.

Learned counsel for the petitioner submits that because of the litigation between the petitioner and the impleading applicant, in relation to the management of M/s. Alliance University, the petitioner could not submit full / complete response along with all documents to respondent No.2 who has proceeded to pass the impugned order, aggrieved by which, the petitioner is before this Court by way of the present petition. It is submitted that if one more opportunity is provided, the petitioner would submit a detailed response / reply along with all documents before respondent No.2 who may be directed to re-consider the claim of the petitioner, in accordance with law. NC: 2024:KHC:8062

4.

Per contra, learned counsel for respondents submits that there is no merit in the petition and same is liable to be dismissed. It is also submitted that petitioner has preferred an appeal and as such, the question of entertaining the present petition before this Court would not arise in the facts and circumstances of the case.

5.

By way of reply, learned counsel for the petitioner submits that petitioner would unconditionally withdraw the appeal filed by him before the appellate authority.

6.

The submission of the learned counsel for the petitioner is placed on record.

7.

Learned counsel for the impleading applicant submits that in the event this Court were to set-aside the impugned order and remit the matter back the matter to the second respondent for re-consideration afresh, all rival contentions between petitioner and impleading applicant are to be kept open to be decided in the appropriate proceedings.

8.

In view of the above facts and circumstances of the case and the specific assertion on part of the petitioner that his inability and omission to submit the detailed / complete / total reply NC: 2024:KHC:8062 along with all documents to respondent No.2 was due to bonafide reasons, unavoidable circumstances and sufficient cause, without expressing any opinion on the merits / demerits of the rival contentions between the petitioner / respondents / impleading applicant and in order to provide one more opportunity in favour of the petitioner to submit the complete / total / detailed reply along with all documents, I deem it appropriate to adopt justice oriented approach and to set-aside the impugned assessment order at Annexure-B1 dated 31.12.2021 and remit the matter back to respondent No.2 for re-consideration afresh in accordance with law.

9.

In the result, I pass the following: ORDER (i) Petition is hereby allowed. (ii) Impugned assessment order at Annexure-B1 and all consequential orders, notices, etc., are hereby set aside. (iii) The matter is remitted back to second respondent for re-consideration afresh, consideration in accordance with law. NC: 2024:KHC:8062 (iv) All rival contentions between petitioner / respondents / impleading applicants including issues / questions regarding jurisdiction are kept open and no opinion is expressed on the same. JUDGE

GH List No.: 1 Sl No.: 0

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