M/S Karnataka Industrial Area… vs ACIT | Karnataka High Court 2019

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

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.

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 -

Learned counsel for the Revenue does not dispute the same.

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.

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