SUDHAKAR vs. ADDITIONAL/JOINT/DEPUTY/

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 1ST DAY OF SEPTMEBER 2022

BEFORE

THE HON'BLE MR.JUSTICE S.R. KRISHNA KUMAR

W.P.No.13180 OF 2022(T-IT)

BETWEEN:

Sudhakar, Age 33 years, Occupation Business, R/o 30, 1st A Cross, Parimalanagar, Nandini Layout, Bengaluru-560 096. Pan:FFUPS6285H. ... Petitioner

(By Sri.Ankur P.D., Advocate for Sri. Balachandran B.S., Advocate)

AND:

Assistant Commissioner of Income tax/Income-tax Officer, National Faceless Assessment Centre, Room No.401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-110 003.

Ward 6(2)(4),

BMTC Building, 80 ft. road,

Koramangala, Bengaluru-560 095.

2 3. The Principal Commissioner of Income tax,

Bengaluru-2,

BMTC Building, 80 ft. road,

Koramangala, Bengaluru-560 095.

...Respondents (By Sri.E.I.Sanmathi, Advocate)

This writ petition is filed under Articles 226 and 227 of the Constitution of India praying to quash the impugned assessment order dated: 24.04.2021 passed by the R1 under section143(3) read with section 144B of the IT Act in SINITBA/AST/A/144(3)/2021-22/103266244(1) for the annual year 2018-19 vide annexure and etc

This writ petition, coming on for orders this day, the Court made the following:

ORDER

In this writ petition, the petitioner has sought for the following reliefs:

“i. issue a writ of certiorari and quash the impugned assessment order dated:24.04.2021 passed by the Respondent No.1 under section 144 read with section 144B of the IT Act in DIN:ITBA/AST/S/144/2021- 22/1032662441(1) for AY 2018-19 vide Annexure ‘B’.

ii. Issue a writ of certiorari and quash the following impugned penalty order dated: 30.12.2021 passed by the Respondent No.1 under section 272(1)(d) of the IT Act: Order date DIN reference Annexure 30.12.2021 ITBA.PNL/F/272A(1)(d)/2021 -22/1038241161(1) Annexure-C 30.12.2021 ITBA.PNL/F/272A(1)(d)/2021 -22/1038289873 (1) Annexure-C1

iii. issue a writ of certiorari and quash the impugned penalty order dated: 20.01.2022 passed by the Respondent No.1 under Section 272AAC(1) of the IT Act in DIN:ITBA/PNL/F/271AAC(1)/2021- 22/1038938231 (1) for the AY 2018-19 vide Annexure-D”.

4 3. In addition to re-iterating various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, it was not possible for the petitioner to take necessary steps to contest the proceedings initiated by the respondents and to put forth his defence along with the documents before the respondent who has proceeded to pass the ex- parte assessment order without providing sufficient or reasoned opportunity to the petitioner who came to know about the impugned assessment order only after receiving the impugned penalty order dated 20.01.2022 passed by respondent No.1 and as such, since the impugned order at Annexure-B dated 24.04.2021 and the impugned penalty order dated 20.11.2022 at Annexure-D are violative of principles

5 of natural justice, the petitioner is before this Court by way of present petition. 4. It is submitted that the petitioner has a good defence/claim to urge on merits and that if one more opportunity is not granted to the petitioner to submit his claim along with necessary relevant documents, petitioner would be put to irreparable injury and hardship and justice would suffer. 5. Per contra, learned counsel for the respondents submits that as can be seen from the impugned order at Annexure-B, despite several opportunities being granted to the petitioner, he neither submitted his reply to the notices issued by the respondents nor produced pleadings or documents in support of his claim and as such, respondent was left with no option but to proceed with the impugned order, which does not warrant interference by this

6 Court in the present petition, which is liable to be dismissed. 6. Though both sides have urged several contentions by adopting a justice oriented approach and in order to give one more final opportunity to the petitioner to put forth his defence along with documents, I deem it just and proper to set aside the impugned order vide Annexure-B and the consequential order Annexure-D and remit the matter back to the respondent No.1 for re-consideration afresh, in accordance with law, by providing one more opportunities to the petitioner to put forth his defence /claim along with documents. 7. In the result, the petitioner is hereby allowed. The impugned orders dated 24.04.2021 vide Annexure-B, impugned penalty orders, both dated 30.12.2021 vide Annexures C and C1 and the impugned penalty order dated 20.01.2022 vide

7 Annexure-D are hereby set aside and the matter is remitted back to the respondent No.1 for reconsideration in accordance with law. 8. As a last chance, the petitioner is granted one more opportunity to submit its defence/ response/claim before the respondent No.1 along with all relevant documents pursuant to which, the respondent No.1 shall proceed further and pass appropriate orders in accordance with law. All rival contentions are kept open and no opinion is expressed on the same.

Sd/-

JUDGE Cm/-