IDEAL HOME CO-OPERATIVE BUILDING-SOCIETY LIMITED vs. THE UNION OF INDIA

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF FEBRUARY, 2022 BEFORE THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.2843/2022 (T-IT) BETWEEN: IDEAL HOME CO-OPERATIVE BUILDING-SOCIETY LIMITED, 1, SILVER JUBILEE PREMISES, RE-MODIFIED 1ST STAGE IDEAL HOMES TOWNSHIP MYSORE ROAD BANGALORE - 560 098 REPRESENTED BY ITS SECRETARY MR. T.S. SOUMINY AGED ABOUT 68 YEARS.

… PETITIONER (BY SRI SHIVA PRASAD E., ADVOCATE) AND: 1. THE UNION OF INDIA,

MINISTRY OF FINANCE,

BY ITS SECRETARY

INCOME TAX DEPARTMENT

NATIONAL E ASSESSMENT CENTRE,

DELHI - 110 001. 2. THE ADDITIONAL/JOINT/DEPUTY/

ASSISTANT COMMISSIONER OF INCOME TAX/

INCOME TAX OFFICER,

NATIONAL E ASSESSMENT CENTRE,

DELHI - 110 001.

… RESPONDENTS (BY SRI E.I. SANMATHI, ADVOCATE)

2 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED E-ASSESSMENT ORDER DATED 21.01.2021 VIDE ANNEXURE-A PASSED BY THE R2 AUTHORITY, UNDER THE NATIONAL FACELESS ASSESSMENT SCHEME 2019, AND CONSEQUENTLY SET ASIDE ALL THE FURTHER AND CONSEQUENTIAL PENALTY PROCEEDINGS INITIATED AS AGAINST THE PETITIONER SOCIETY, IN PURSUANCE OF THE IMPUGNED ORDER DATED 21.01.2021 VIDE ANNEXURE-A PASSED BY THE R2 AUTHORITY AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT, MADE THE FOLLOWING: ORDER Petitioner has sought for issuance of writ of certiorari to quash the impugned assessment order dated 21.01.2021 at Annexure-A passed by respondent No.2 and has also sought for setting aside all consequential penalty proceedings initiated against the petitioner - Society in pursuance of the impugned order dated 21.01.2021. 2. It is the contention of the petitioner that the assessment proceedings ought to have followed the procedure prescribed in Faceless Assessment Scheme, which subsequently has been incorporated in Section 144B of the Income Tax Act, 1961. It is submitted that the order at Annexure-A that has been passed is not in compliance

3 with the procedure prescribed in the Faceless Assessment Scheme, which was in force. 3. Learned counsel for the Revenue does not dispute such contention. 4. Accordingly, the order at Annexure-A is set aside. The matter is remanded for fresh consideration with a direction that the assessment proceedings to be concluded in terms of the procedure under Section 144B of the Income Tax Act after affording necessary opportunity to the petitioner as is permissible under law. All contentions of the petitioner are kept open. 5. Learned counsel for the petitioner undertakes to withdraw the appeal filed as against the impugned order in light of the order now passed whereby the petitioner has been afforded a fresh opportunity. Learned counsel for the petitioner submits that the proceedings in appeal have now been rendered infructuous and hence, the withdrawal of the appeal would be made within a period of one week.

4 6. Writ petition is disposed off accordingly. Sd/- JUDGE VP