KUSHALNAGAR CO OPERATIVE BANK LIMITED vs. INCOME TAX OFFICER

INCOME TAX OFFICER WARD - 1 MADIKERI-571201.

NATIONAL FACELESS ASSESSMENT CENTRE, ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP,

Heard Sri.Ravishankar, learned counsel for the petitioner and Sri.M.Dilip learned counsel for respondents. Perused the writ petition papers.

Learned counsel for the petitioner Sri.Ravishankar would submit that the assessee-Bank filed its returns for the assessment year 2022-23 on 31.10.2022. Thereafter, notice under Section 143(2) as well as notice under Section 142(1) of 1961 Act was issued and the petitioner failed to file reply or participate in the proceedings due to various unavoidable reasons. It is submitted that the petitioner was audited by a Chartered Accountant for the assessment year 2022-23 whose e-mail was listed as the primary e-mail on the e-filing portal. But, subsequently, the petitioner had to change the Chartered Accountant for the following year and new Chartered Accountant failed to change the primary e-mail, which had resulted in non- receipt of notices stated above. Learned counsel would submit that since the petitioner had not received the notices issued under Section 143(2) and 142(1) or subsequently issued show-cause notice under Section 144 of 1961 Act, he could not reply to any of the notices and could not participate in the proceedings. Therefore, he submits that the petitioner be provided an opportunity to

Per contra, learned counsel for respondents would not dispute that the Assessment Order is ex-parte order, but he submits that the respondent-authorities were not aware of the change of Chartered Accountant and since no e-mail address was changed, notices were issued as per Data available, to the e-mail address provided by the assessee as well as his Chartered Accountant. Therefore, he submits that when the petitioner has not utilized the opportunity provided, now it is not open for the petitioner to contend that they need an opportunity to participate in the proceedings.

Having heard the learned counsel for the parties and on perusal of the writ petition papers, I am of the view that in the present fact situation, the petitioner is to be provided an opportunity to submit their reply and to

From the narration of facts, it appears that the petitioner has not received notices issued under Sections 143(3) or 142(1) of 1961 Act, apparently because they had changed the Chartered Accountant which contention requires to be believed in the peculiar circumstances of the case. As the petitioner had no opportunity to file reply or objections or to participate in the proceedings, I deem it appropriate to quash assessment order subsequent attachment orders passed, so as to provide an opportunity to the petitioner to file objections to the notices and to participate in the proceedings.

Hence the following order: (i) The writ petition is allowed. (ii) Annexure-A No.ITBA/RCV/S/226(3)- 1/2024-25/1071175395(1) dated 12.12.2024; Annexure- A1 No.ITBA/PNL/F/272A(1)(d)/ 2024- 25/1068232683(1) Annexure-A2