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1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF JANUARY 2022 BEFORE THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.12563/2021 (T-IT) Between: CREDITACCESS GRAMEEN LIMITED CIN: L51216KA1991PLC053425 PAN: AAECS7201G Having its registered office at: New No.49 (Old No.725), 46th Cross, (Next to Rajalakshmi Kalyana Mantapa) 8th Block, Jayanagar, Bengaluru - 560 071 Represented herein by its Chief Financial Officer, Shri S. Balakrishna Kamath.
… Petitioner (By Sri Bharadwaj Sheshadri, Advocate) And: 1. The Additional/Joint/Deputy/
Assistant Commissioner of Income-Tax/
Income-Tax Officer,
National Faceless Assessment Centre,
Income-Tax Department,
2nd Floor, Jawaharlal Nehru Stadium,
New Delhi - 110 003. 2. The Deputy Commissioner of Income-Tax,
Circle 2(1)(1), Bangalore,
BMTC Building, 80 Feet Road,
6th Block, Koramangala,
Bengaluru - 560 095.
2 3. The Principal Commissioner/
Commissioner of Income-Tax-2,
Bangalore,
BMTC Building, 80 Feet Road,
6th Block, Koramangala,
Bengaluru - 560 095.
… Respondents (By Sri K.V. Aravind, Advocate) This Writ Petition is filed under Articles 226 of Constitution of India, praying to quash the impugned assessment order dated 25.06.2021 passed by the R1 under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for the Assessment Year 2018-19 Annexure-A1 and etc. This Writ Petition coming on for preliminary hearing in 'B' Group this day, the Court made the following: ORDER The petitioner has called in question the validity of the impugned Assessment Order dated 25.06.2021 at Annexure-'A1' passed by the respondent under Section 144(3) read with Section 144B of the Income Tax Act, 1961 and also to set aside the Computation Sheet dated 25.06.2021 issued by the first respondent for the Assessment Year 2018-2019 at Annexure-'A2.' The petitioner has also sought for quashing of the impugned notice of demand dated 25.06.2021 issued by the first respondent under Section 156 of the Income Tax Act for the Assessment Year 2018-2019 at Annexure-'A3.'
The petitioner submits that the Show Cause Notice containing draft Assessment Order came to be issued on 21.04.2021 calling upon the petitioner to file his response by 22.04.2021, in effect, granting only a day's time for such response.
The petitioner submits that pursuant to the request for adjournment, time was extended as per the notice at Annexure-'C3' permitting the filing of response by 23.04.2021. The petitioner submits that the reply came to be made out as per Annexure-'C4' dated 23.04.2021 and while making out such reply, it was submitted that the response that was being made was not a complete response.
It is further submitted by learned counsel for the petitioner that the response was made as the petitioner did not want to suffer any adverse order and in light of short time made available, whatever material that was available the same was made out in the reply, which reply was in fact a provisional reply. The petitioner submits that
4 subsequently the Assessment Order has been passed and though the Assessment Order was passed much later, there was no opportunity for filing of further response before such time.
Learned counsel for the Revenue on the other hand submits that in light of COVID-19 pandemic, there may have been some delay in response from the Revenue side, but is unable to controvert the short date and limited time given to the petitioner for filing of response.
Without entering into the merits of the matter, prima facie, it appears that the opportunity granted to the petitioner to file his reply is in violation of principles of natural justice insofar as insufficient time was granted to make out the response.
Accordingly, in light of the same, the Assessment Order dated 25.06.2021 at Annexure-'A1' for the Assessment Year 2018-2019 is set aside and so also the Computation Sheet for the Assessment Year 2018-2019
5 dated 25.06.2021 and notice of demand at Annexure-A3 dated 25.06.2021 is also set aside. The matter is remanded for consideration from the stage of filing of reply to the Show Cause Notice at Annexure-'C1' dated 21.04.2021. The petitioner is at liberty to file additional response apart from the response filed at Annexure-'C4.' The request for personal hearing, if made, may be considered appropriately by the Assessing Officer.
However, it is made clear that the setting aside is only on the preliminary point of violation of principles of natural justice and is not to be deemed to reflect as regards the merits of the Assessment Order.
The petition is accordingly disposed off.
Sd/- JUDGE VGR