M/S KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

PDF · subscribers
WP/57910/2018HC KarnatakaKAHC01026414201827 September 2019Bench: S.SUJATHA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court quashed the impugned order for special audit. The Assessing Authority was directed to re-consider the matter in light of the previous High Court judgment and provide a proper opportunity of hearing to the assessee.

What were the facts?

The petitioner, Karnataka Industrial Area Development Board, challenged an order directing a special audit of its accounts for AY 2016-17. The petitioner argued that the case was covered by a previous High Court order concerning the same assessee for AY 2013-14 and 2014-15.

What were the issues?

Whether the order directing a special audit under Section 142(2A) was justified, considering a prior High Court ruling on a similar matter for the same assessee.

Which sections of the Income-tax Act were involved?

Section 142(2A)

AI-generated summary — verify with the full judgment below

Before: DR.N. SHIVASHANKARA, IAS

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF SEPTEMBER, 2019 BEFORE: THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.57910/2018 (T – IT) BETWEEN: M/S. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD No.49, 4TH AND 5TH FLOOR, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU-560001 (REP BY ITS CEO AND EM, DR.N. SHIVASHANKARA, IAS AGED ABOUT 47 YEARS S/O SRI. NINGE GOWDA.

…PETITIONER

(BY SRI SHARATH.S., ADV., FOR SRI CHYTHANYA.K.K, ADV.)

AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE-1 6TH FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560027

2.

THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) 6TH FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560027.

…RESPONDENTS

(BY SRI JEEVAN J. NEERALGI, ADV.)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE

- 2 - WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE, THE IMPUGNED ORDER DATED 11.12.2018 PASSED BY THE LEARNED FIRST RESPONDENT FOR CONDUCT OF SPECIAL AUDIT UNDER SECTION 142(2A) OF THE INCOME- TAX ACT, 1961, ENCLOSED AS ANNEXURE-A; AND ETC.,

THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:-

O R D E R

The petitioner has challenged the order dated 11.12.2018 passed by the first respondent, directing special audit of accounts under Section 142 [2A] of the Income Tax Act, 1961 [‘Act’ for short] relating to the Assessment Year 2016-17.

2.

Learned counsel for the petitioner would submit that the matter is squarely covered by the order of the Cognate Bench of this Court in W.P.No.1863/2017 and Connected Matter [D.D. 02.01.2018] in the very same assessee’s case relating to the Assessment Years 2013-14 and 2014-15. Copy of the said order is placed before the Court.

- 3 -

3.

Learned counsel for the Revenue does not dispute the same.

4.

In view of the aforesaid, the impugned order at Annexure-A dated 11.12.2018 passed under Section 142[2A] of the Act is quashed. The respondent – Assessing Authority shall re-consider the matter in the light of the observations made in W.P.No.1863/2017 and Connected Matter referred to above.

The respondent – Assessing Authority shall pass fresh orders after providing a reasonable and proper opportunity of hearing to the petitioner – assessee.

With the aforesaid observations and directions, writ petition stands disposed of.

Sd/- JUDGE

NC.

More judgments on Section 142(2A)

All 676 judgments and leading authorities on Section 142(2A) →

Recent GST High Court judgments

Search GST case law →