SMT ANANTHA LAKSHMI vs. INCOME TAX OFFICER

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WP/26093/2024HC KarnatakaKAHC01054355202424 September 2024Author: S.R.KRISHNA KUMAR4 pages
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What did the High Court hold?

The High Court allowed the petition. It set aside the impugned assessment order dated December 25, 2019, and the consequential order dated January 25, 2022. The matter was remitted back to the concerned respondent for reconsideration afresh. The Court directed that the reconsideration should be to the stage of the petitioner submitting a reply to the notices under Section 142(1) of the IT Act. All rival contentions on all aspects of the matter were kept open, and no opinion was expressed on the merits of the case. The operative direction was to provide one more opportunity to the petitioner to submit her reply.

What were the facts?

The petitioner, Smt. Anantha Lakshmi, filed a writ petition challenging two orders: an ex-parte assessment order under Section 144 of the Income Tax Act, 1961, dated December 25, 2019, issued by Respondent No. 2, and an order under Section 270A of the Act dated January 25, 2022, issued by Respondent No. 3. Both orders pertain to Assessment Year 2017-18. The petitioner had not submitted a reply to notices issued under Section 142(1) of the IT Act on August 7, 2019, and December 6, 2019. The petitioner's counsel submitted that due to the demise of her spouse and her relocation, she was unable to respond to the notices and sought one more opportunity. The respondents argued that the petition had no merit.

What were the issues?

1. Whether the ex-parte assessment order under Section 144 of the Income Tax Act, 1961, dated December 25, 2019, and the consequential order under Section 270A of the Act dated January 25, 2022, for Assessment Year 2017-18, are liable to be quashed. Assessee's Contention: The petitioner argued that she was unable to submit a reply to the notices under Section 142(1) due to personal reasons (demise of spouse and relocation) and sought an opportunity to submit her reply and have the matter reconsidered. Revenue's Contention: The respondents contended that the petition lacked merit and should be dismissed.

Which sections of the Income-tax Act were involved?

Section 144,Section 270A,Section 142(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.26093 OF 2024 (T-IT) BETWEEN:

1.

SMT. ANANTHA LAKSHMI, AGED ABOUT 57 YEARS, FLAT NO.G01, DREAM HOME APARTMENT, NO.31, 32, 33, BOHRA LAYOUT, GOTTIGERE, BANNERGHATTA ROAD, BANGALORE - 560 083 PAN : APTPL0811Q.

PREVIOUSLY AT NO.17, FF-05, PRANAM RESIDENCY, NEAR AMRUTHAHALLI POLICE STATION, AMRUTHNAGARA PO, BANGALORE 560 092. …PETITIONER

(BY SRI. RAVI SHANKAR S.V., ADVOCATE) AND:

1.

WARD – 6(3)(2), BANGALORE-560095.

2.

WARD – 7(2)(4), BANGALORE-560 095.

3.

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

Digitally signed by DEVIKA M Location: HIGH COURT OF KARNATAKA

JAWAHARLAL NEHRU STADIUM, DELHI – 110003. …RESPONDENTS

(BY SRI. M.DILIP, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ORDER UNDER SECTION 144 OF THE ACT, DATED 25/12/2019 BEARING DIN NO.ITBA/AST/S/144/2019- 20/1023060259(1), ISSUED BY THE RESPONDENT NO.2 FOR THE ASSESSMENT YEAR 2017-18 HEREIN MARKED AS ANNEXURE – A AND ETC.

THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER In this petition, the petitioner seeks the following reliefs: (i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the order under Section 144 of the Act, dated 25.12.2019 bearing DIN No.ITBA/AST/S/144/ 2019-20/ 1023060259(1), issued by the respondent No.2 for the assessment year 2017-18 herein marked as Annexure-A.

(ii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the order under Section 270A of the Act, dated 25.01.2022, bearing DIN No.ITBA/PNL/F/ 270A/2021-22/ 1039072076(1) issued by the respondent No.3 for the assessment year 2017-18 herein marked as Annexure-A1.

(iii) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.

2.

A perusal of the material on record would indicate that the assessment proceedings initiated by the respondent, notices under Section 142(1) of the Income Tax Act, 1961 (‘IT Act’ for short) having been issued by the respondent to the petitioner on 07.08.2019 and 06.12.2019, the petitioner did not submit any reply, as a result of which the respondent proceeded to pass the impugned exparte assessment order which is assailed in the present petition. It is submitted that due to the spouse of the assesse having been passed away and re-location of the assesse to a different place, the petitioner was not in a position to submit the reply to the aforesaid notices and as such, if one more opportunity is provided to the petitioner by setting aside the impugned order, the petitioner would submit a reply along with the documents and the respondent may be directed to re-consider the matter afresh in accordance with law.

3.

Per contra, the learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.

4.

A perusal of the impugned order would undisputedly indicate that the petitioner had not submitted reply to the notices under Section 142(1) of the IT Act and consequently, in order to

provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned assessment order at Annexure-A dated 25.12.2019 and Annexure-A1 dated 25.01.2022 and remit the matter back to the concerned respondent for re- consideration afresh in accordance with law.

5.

In the result, I pass the following: ORDER (i) The petition is hereby allowed.

(ii) The impugned orders at Annexure-A dated 25.12.2019 and Annexure-A1 dated 25.01.2022, are hereby set aside.

(iii) The matter is remitted back to the concerned respondent for re-consideration afresh in accordance with law to the stage of the petitioner submitting a reply to the notices under Section 142(1) of the IT Act.

(iv) All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same.

Sd/- (S.R.KRISHNA KUMAR) JUDGE MD List No.: 1 Sl No.: 33

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