M/S GOGTE MINERALS vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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WP/106267/2018HC KarnatakaKAHC02013002201830 November 2021Bench: N.S.SANJAY GOWDA7 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the assessment order was vitiated due to a violation of the principles of natural justice, as it was passed without hearing the petitioner, despite a prior direction from the Joint Commissioner.

What were the facts?

The petitioner challenged a rebuttal order and subsequently an assessment order. The Joint Commissioner had directed the Assessing Officer to pass a speaking order after hearing the petitioner. However, the Assessing Officer passed the assessment order without providing a hearing.

What were the issues?

Whether an assessment order passed without providing a hearing to the assessee, in violation of the principles of natural justice, is valid.

Which sections of the Income-tax Act were involved?

Section 144A

AI-generated summary — verify with the full judgment below

Heard together (5 matters)

W.P.NO.106263/2018
W.P.NO.106264/2018
W.P.NO.106265/2018
W.P.NO.106266/2018
W.P.NO.106267/2018

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 30TH DAY OF NOVEMBER 2021 BEFORE THE HON’BLE MR.JUSTICE N.S.SANJAY GOWDA W.P.NO.106263/2018 (T-IT) C/W W.P.NO.106264/2018 W.P.NO.106265/2018 W.P.NO.106266/2018 W.P.NO.106267/2018

W.P.NO.106263/2018:

BETWEEN

M/S GOGTE MINERALS REPRESENTED BY ITS PARTNER SHRI. ARVIND B. GOGTE AGE.74 YEARS, OCC. BUSINESS, R/O 2ND FLOOR, NASCO ISHANYA, 27/1, KHANAPUR ROAD, TILAKWADI, BELAGAVI-590006. ...PETITIONER (BY SRI.SANGRAM S KULKARNI, ADV.)

AND

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, KHIMJIBHAI COMPLEX, OPP. CIVIL HOSPITAL, BELAGAVI 590001. …..RESPONDENT (BY SRI.Y.V.RAVIRAJ, ADV.)

: 2 : THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED REBUTTAL ORDER DATED 27.09.2018 PASSED BY THE RESPONDENT THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, RELATING TO THE ASSESSMENT YEAR 2010-11 VIDE ANNEXURE-E.

W.P.NO.106264/2018:

BETWEEN

M/S GOGTE MINERALS REPRESENTED BY ITS PARTNER SHRI. ARVIND B. GOGTE AGE.74 YEARS,OCC. BUSINESS, R/O 2ND FLOOR,NASCO ISHANYA, 27/1,KHANAPUR ROAD, TILAKWADI,BELAGAVI-590006. ...PETITIONER (BY SRI.SANGRAM S KULKARNI, ADV.)

AND

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, KHIMJIBHAI COMPLEX, OPP. CIVIL HOSPITAL, BELAGAVI 590001. ….RESPONDENT (BY SRI.Y.V.RAVIRAJ, ADV.)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED REBUTTAL ORDER DATED 27.09.2018 PASSED BY THE RESPONDENT THE ASSISTANT COMMISSIONER OF INCOME TAX,

: 3 : CIRCLE-I, BELAGAVI, RELATING TO THE ASSESSMENT YEAR 2012-13 VIDE ANNEXURE-"E".

W.P.NO.106265/2018:

BETWEEN

M/S GOGTE MINERALS REPRESENTED BY ITS PARTNER SHRI. ARVIND B. GOGTE AGE.74 YEARS, OCC. BUSINESS, R/O 2ND FLOOR, NASCO ISHANYA, 27/1, KHANAPUR ROAD, TILAKWADI,BELAGAVI-590006. ...PETITIONER (BY SRI.SANGRAM S KULKARNI, ADV.)

AND

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, KHIMJIBHAI COMPLEX, OPP. CIVIL HOSPITAL, BELAGAVI 590001. ….RESPONDENT (BY SRI.Y.V.RAVIRAJ, ADV.)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO UASH THE IMPUGNED REBUTTAL ORDER DATED 27.09.2018 PASSED BY THE RESPONDENT THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, RELATING TO THE ASSESSMENT YEAR 2011-12 VIDE ANNEXURE-"E".

W.P.NO.106266/2018:

BETWEEN

M/S GOGTE MINERALS REPRESENTED BY ITS PARTNER SHRI. ARVIND B. GOGTE

: 4 : AGE.74 YEARS, OCC. BUSINESS, R/O 2ND FLOOR, NASCO ISHANYA, 27/1, KHANAPUR ROAD, TILAKWADI,BELAGAVI-590006. ...PETITIONER (BY SRI.SANGRAM S KULKARNI, ADV.)

AND

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, KHIMJIBHAI COMPLEX, OPP. CIVIL HOSPITAL, BELAGAVI 590001. ….RESPONDENT (BY SRI.Y.V.RAVIRAJ, ADV.)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO UASH THE IMPUGNED REBUTTAL ORDER DATED 27.09.2018 PASSED BY THE RESPONDENT THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, RELATING TO THE ASSESSMENT YEAR 2011-12 VIDE ANNEXURE-"E".

W.P.NO.106267/2018:

BETWEEN

M/S GOGTE MINERALS REPRESENTED BY ITS PARTNER SHRI. ARVIND B. GOGTE AGE.74 YEARS, OCC. BUSINESS, R/O 2ND FLOOR, NASCO ISHANYA, 27/1, KHANAPUR ROAD, TILAKWADI,BELAGAVI-590006. ...PETITIONER (BY SRI.SANGRAM S KULKARNI, ADV.)

AND

THE ASSISTANT COMMISSIONER

: 5 : OF INCOME TAX, CIRCLE-I, BELAGAVI, KHIMJIBHAI COMPLEX, OPP. CIVIL HOSPITAL, BELAGAVI 590001. ….RESPONDENT (BY SRI.Y.V.RAVIRAJ, ADV.)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO UASH THE IMPUGNED REBUTTAL ORDER DATED 27.09.2018 PASSED BY THE RESPONDENT THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, BELAGAVI, RELATING TO THE ASSESSMENT YEAR 2011-12 VIDE ANNEXURE-"E".

THESE PETITIONS COMING ON FOR HEARING ON INTERLOCUTORY APPLICATION, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

1.

Initially in these writ petitions, a rebuttal order dated 27.09.2018 was challenged. 2. Subsequently, an assessment order came to be passed on 09.10.2018 and by way of an amendment, this order of assessment has been challenged. 3. It is the undisputed case of both the parties that on 05.10.2018, in a proceeding under Section 144 A of the Income Tax Act, 1961 (for short ‘the Act’), initiated by the petitioner, the Joint Commissioner of Income Tax had directed the Assessing Officer to pass a speaking order within the

: 6 : simulated time as provided under the Act. The said order is produced at Annexure-G. 4. It is the case of the petitioner that notwithstanding the order dated 05.10.2018 passed by the Joint Commissioner vide Annexure-J, the Assessing Officer without hearing the petitioner has passed the order of assessment and thereby the said order is vitiated as being violative of the principles of natural justice. 5. It is not in dispute that despite the order passed by the joint commissioner under Section 144(A) of the Act, the Assessing Officer has passed an assessment order without hearing the petitioner. It is therefore necessary that the assessment order, Annexure-H, be quashed and the matter be remitted to the Assessing Authority with a direction to him to consider the matter afresh and pass a fresh order for assessment after hearing the petitioner. 6. The Assessing Officer shall take into consideration all the contentions that the petitioner seeks to urge before passing the fresh order for assessment.

: 7 : 7. It goes without saying that the petitioner shall be heard before any order of assessment is passed by the Assessing Officer. 8. The writ petitions are accordingly allowed.

Sd/- JUDGE KGK

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