KHAN HABEEB vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT

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WP/15957/2022HC KarnatakaKAHC01035822202220 October 2022Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryRemanded

What did the High Court hold?

The tribunal held that the assessment order was passed in violation of the principles of natural justice as the petitioner was not given an opportunity to respond to the show cause notice. The order was set aside and the matter was remitted for fresh consideration.

What were the facts?

The petitioner filed income tax returns, and the respondent issued notices. The petitioner responded citing health reasons and requested withdrawal of notices. However, the respondent issued a show cause notice and passed an ex-parte assessment order on the same day.

What were the issues?

Whether the ex-parte assessment order passed on the same day as the show cause notice, without providing an opportunity to respond, violates the principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 144,Section 144B,Section 142(1)

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 20TH DAY OF OCTOBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.15957/2022 (T-IT) BETWEEN: KHAN HABEEB S/O LATE JALEEL KHAN AGED ABOUT 60 YEARS NO.H-03, K H B, GOPPISHETTY KOPPA SHIVAMOGGA - 577 202

… PETITIONER (BY SRI. R. CHANDRASHEKAR, ADVOCATE AND SRI KASHINATH KALMATH, ADVOCATE FOR SRI R. RAMA MURTHY, ADVOCATE) AND: ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER NATIONAL FACE LESS ASSESSMENT CENTRE DELHI - 110 001.

… RESPONDENT (BY SRI. M. DILEEP, ADVOCATE FOR SRI K.V. ARAVIND, ADVOCATE) ***** THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER OF ASSESSMENT DATED 30.03.2022 PASSED U/S 144 R.W.S.144B OF AC ANNEXURE-D NO.ITBA/AST/S/147/2021- 22/1042196224 TO THIS WRIT PETITION AND ETC.

THIS W.P. COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:-

2 ORDER

In this petition, the petitioner seeks quashing of the impugned Assessment Order at Annexure-'D' dated 30.03.2022 for the Assessment Year 2015-2016 and other reliefs.

2.

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

3.

The material on record discloses that pursuant to the petitioner filing income tax returns on 07.01.2016, the respondent issued the notice dated 31.03.2021 which was followed by the notice dated 09.02.2022 issued under Section 142(1) of the Income Tax Act (for short ‘I.T. Act'). In response thereto, the petitioner submitted the reply dated 08.03.2022 indicating health reasons and requested the respondent to withdraw the aforesaid notices.

4.

It is the grievance of the petitioner that despite the petitioner submitting aforesaid reply, the respondent has proceeded to not only issue the show cause notice

3 dated 30.03.2022, but has also passed the impugned order on the same day, i.e. on 30.03.2022, which is clearly an ex-parte order and which did not take into consideration the reply of the petitioner and did not provide an opportunity to the petitioner to putforth his objections and contentions and as such, the impugned Assessment Order is violative of the principles of natural justice and the same deserves to be quashed.

5.

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

6.

As rightly contended by learned counsel for the petitioner, perusal of the material on record, including the reply submitted by the petitioner on 08.03.2022 will clearly indicate that the respondent has not only issued the show cause notice on 30.03.2022, but has also passed the impugned order on the very same day without providing any opportunity to the petitioner to submit his response/reply alognwith documents to the show cause notice and consequently, the impugned Assessment Order

4 is violative of the principles of natural justice and the same deserves to be quashed and the matter remitted back to the respondent for reconsideration afresh, in accordance with law.

7.

In the result, I pass the following ORDER

(i) Petition is hereby allowed. The impugned Assessment Order at Annexure-‘D’ dated 30.03.2022 is hereby set aside. The matter is remitted back to the respondent for reconsideration afresh, in accordance with law.

(ii) Liberty is reserved in favour of the petitioner to file his reply/objections alongwith the documents to the show cause notice at Annexure-C dated 30.03.2022. Upon the petitioner submitting his reply alongwith the documents to the show cause notice dated 30.03.2022, the respondent shall proceed further and pass appropriate orders after

5 providing an opportunity of personal hearing to the petitioner. Sd/- JUDGE VGR

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