SRI VISHWA JYOTHI AGRI COTTONS vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP/101939/2025HC KarnatakaKAHC02006481202525 March 2025Bench: JYOTI MULIMANI5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that an opportunity should be accorded to the petitioner to submit the details. The Court found that the Income Tax Department proceeded to pass the assessment order stating that despite sufficient opportunities, the assessee failed to furnish required details. The petitioner's reason for non-submission was the non-conversion of manual records to digital format. The Court deemed it proper to quash the assessment order dated March 5, 2025, and consequently, the show cause notices dated March 5, 2025. The matter was remanded to the respondent to reconsider the proceedings from the stage of the notice dated June 19, 2024. The assessee was directed to produce the details/documents and appear before the respondent on April 28, 2025, without awaiting further notice. The principle is that where a genuine difficulty in submitting information is shown, and the assessment order is passed without considering it, a remand for fresh consideration with an opportunity to present details is appropriate.

What were the facts?

The petitioner, Sri Vishwa Jyothi Agri Cottons, a partnership firm, filed a writ petition before the High Court of Karnataka, Dharwad Bench. The petition challenged an assessment order dated March 5, 2025, passed under Section 143(3) of the Income Tax Act, 1961, for Assessment Year 2023-24, and three penalty show cause notices dated March 5, 2025, issued under Sections 271AAC(1), 270A, and 271AAB of the Act. The petitioner sought to quash these orders. The revenue, represented by the Deputy Commissioner of Income Tax, Central Circle, Bellary, contended that despite opportunities, the petitioner failed to submit required details.

What were the issues?

1. Whether the assessment order dated 05.03.2025 passed under Section 143(3) of the Income Tax Act, 1961, for Assessment Year 2023-24 is liable to be quashed? (Question of law and fact) 2. Whether the penalty show cause notices dated 05.03.2025 issued under Section 271AAC(1), Section 270A, and Section 271AAB of the Income Tax Act, 1961, for Assessment Year 2023-24 are liable to be quashed? (Question of law and fact) Assessee's contentions: The petitioner argued that the delay in submitting details was due to the manual maintenance of records, which could not be converted to digital format. Therefore, the assessment order should be quashed, and an opportunity should be granted to submit the details. Revenue's contentions: The respondent argued that despite several opportunities, the petitioner failed to submit the called-for details, justifying the authority's action. The revenue contended that the writ petition should be dismissed.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 271AAC(1),Section 270A,Section 271AAB

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC-D:5476 WP No. 101939 of 2025

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 25TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 101939 OF 2025 (T-IT) BETWEEN:

SRI VISHWA JYOTHI AGRI COTTONS, PARTNERSHIP FIRM REGISTERED UNDER INDIAN PARTNERSHIP ACT, 1932, REPRESENTED BY AUTHORISED REPRESENTATIVE, SHRI. RAHUL, AGED ABOUT 22 YEARS, PLOT NO.6 TO 20, Q-3 4,5 AND SPL-14, INDUSTRIAL ESTATE, HYDERABAD ROAD, RAICHUR-584 134. …PETITIONER (BY SRI. RAVISHANKAR S.V. AND SRI. SHASHANK S.HEGDE, ADVOCATES)

AND:

THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, BELLARY, SURESH COMPLEX, SANJAY GANDHI NAGAR, INFANTRY ROAD, BELLARY-583 104. …RESPONDENT (BY SRI. M. THIRUMALESH AND SMT. ROOPA ANAVEKAR, ADVOCATES)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.

THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING, THIS DAY, AN ORDER IS MADE AS UNDER:

Digitally signed by PREMCHANDRA M R Location: HIGH COURT OF KARNATAKA

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NC: 2025:KHC-D:5476 WP No. 101939 of 2025

ORAL ORDER

Sri.Ravishankar.S.V., and Sri.Shashank S.Hegde., counsel for the petitioner and Smt.Roopa Anavekar., counsel for the respondent have appeared in person.

Sri.M.Thirumalesh., counsel for the respondent has appeared through video conferencing. 2. Though the matter is listed today for preliminary hearing, with the consent of counsel for the respective parties it is heard. 3. The captioned Writ Petition is filed seeking following reliefs: a) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order dated 05.03.2025 passed under section 143(3) of the Act for the assessment year 2023-24 by the Respondent bearing DIN and Order No. ITBA/AST/S/143(3)/2024- 25/1074032775(1) vide Annexure-A. b) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty show cause notice dated 05.03.2025 issued under section 271AAC(1) of the Act for the assessment year 2023-24 by the Respondent bearing DIN and Notice No.

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NC: 2025:KHC-D:5476 WP No. 101939 of 2025

ITBA/PNL/S/271AAC(1)/2024-25/1074056294(1) vide Annexure-A1. c) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty show cause notice dated 05.03.2025 issued under section 270A of the Act for the assessment year 2023-24 by the Respondent bearing DIN and Notice No. ITBA/PNL/S/270A/2024-25/1074033054(1) vide Annexure- A2. d) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty show cause notice dated 05.03.2025 issued under section 271AAB of the Act for the assessment year 2023-24 by the Respondent bearing DIN and Notice No. ITBA/PNL/S/271AAB/2024-25/1074033122(1) vide Annexure-A3. 4. Counsel for the respective parties urged several contentions. Counsel Sri.Ravishankar.S.V., in presenting his arguments submits that the records were maintained manually, the petitioner could not convert the same into digital format. Hence, there was a delay in submitting the details. Therefore, the petitioner could not furnish the details as required by the authority. Counsel therefore, submits that the assessment

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NC: 2025:KHC-D:5476 WP No. 101939 of 2025

order may be quashed and opportunity may be accorded to the petitioner to submit the details as required by the respondent. By way of reply, counsel Sri.M.Thirumalesh., submits that despite granting several opportunities the petitioner did not submit the details called for by the authorities. He justified the action on the part of the authority and submitted that the writ petition may be dismissed. 5. Heard the arguments and perused the Writ papers with care. 6. The assessment order is called into question in this Writ Petition on several grounds as setout in the Memorandum of Writ Petition. The assessment order is furnished along with the Writ Petition and the same is marked as Annexure-A. A perusal of the same would reflect that the Income Tax Department proceeded to pass the assessment order stating that despite giving sufficient opportunities to represent its case, the assessee failed to furnish required details called for. Hence, the department proceeded to pass the assessment order. Because of non-conversion of the manual records into the digital format, the petitioner could not furnish the details as

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NC: 2025:KHC-D:5476 WP No. 101939 of 2025

sought by the authority. In my view, an opportunity may be accorded to the petitioner to submit the details. Hence, this Court deems it proper to quash the assessment order dated:05.03.2025, the matter requires a remand.

7.

The Writ of Certiorari is ordered. The assessment order dated 05.03.2025 and consequently the show cause notices dated:05.03.2025 vide Annexures-A1, A2 and A3 are quashed. The matter is remanded to the respondent to reconsider the matter and the proceedings are remanded to the stage of notice dated:19.06.2024, and the assessee is directed to produce the details/ documents. Since the petitioner is represented by its counsel, the petitioner is directed to appear before the respondent on 28.04.2025 without awaiting further notice. 8. Resultantly, the Writ Petition is allowed and remanded. Sd/- (JYOTI MULIMANI) JUDGE RH,MRP LIST NO.: 1 SL NO.: 5

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