HEALTHCARE GLOBAL ENTERPRISES LIMITED vs. THE ASSISTANT COMMISSIONER OF

W.P.29328/13 1 IN THE HIGH COURT OF KARNATAKA, BANGALORE

DATED THIS THE 24TH DAY OF JULY, 2013

BEFORE

THE HON'BLE MR.JUSTICE RAM MOHAN REDDY

WRIT PETITION NO. 29328 OF 2013 (T-IT)

BETWEEN:

HEALTHCARE GLOBAL ENTERPRISES LIMITED HCG TOWER, 8, P.KALINGA RAO ROAD SAMPANGI RAM ROAD BANGALORE - 560 027 (REP.BY ITS EXECUTIVE DIRECTOR MR. ANANTHARAMAN SADASIVAM) … PETITIONER

(BY SRI. K R VASUDEVAN, ADVOCATE)

AND :

THE ASSISTANT COMMISSIONER OF INCOME TAX, (TDS) CIRCLE 16(2) BANGALORE, 4TH FLOOR, HMT BHAVAN 59, BELLARY ROAD BANGALORE - 560 032. … RESPONDENT

(BY SRI. K V ARAVIND, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS OF THE CASE & TO QUASH THE IMPUGNED ORDER DT. JUNE 13, 2103, ENCLOSED AS ANN-H ALONGWITH THE NOTICE OF DEMAND DATE JUNE 13, 2013, A COPY OF THE NOTICE DT. JUNE 13, 2013 IS MARKED AS ANN-H; AND ETC.

THIS WRIT PETITION COMING ON FOR PRL.HEARING THIS DAY, THE COURT MADE THE FOLLOWING:

W.P.29328/13 2 ORDER

After having heard the learned counsel for considerable time, Sri.K.V.Aravand, learned counsel for the respondent-revenue submits that the entire proceeding was on the basis of a survey conducted by the Assessing Officer. If that is so, principles of natural justice requires that the petitioner - assessee is entitled to a copy of the survey report and in the least, a show cause notice before initiating action to declare the petitioner as an assessee in default. The survey report, according to the learned counsel for the revenue deals with the nature of employment of doctors in the petitioner hospital though termed as consultants but, in fact, are paid salaries. If the teeth of the nature of allegation by the Assessing Officer based on his survey, petitioner cannot but be said to be entitled to an opportunity of hearing to put-forth its say before being declared an assessee in default. Suffice it to state that the order dated 13.6.2013 issued under Section 201(1)

W.P.29328/13 3 and 201(1)(a) of the Income Tax Act for the financial year 2010-11 suffers from the vice of violation of principles of natural justice sequentially, the notice of demand dated 13.6.2013 Annexure-H though wrongly mentioned as assessment year 2012-13 cannot be sustained.

In the result, this petition is allowed. The order Annexure-G and the demand notice Annexure-H are quashed. The Proceeding is remitted for consideration afresh after extending the petitioner an opportunity to show cause against the survey report, and thereafter to pass orders strictly in accordance with law.

SD/-

JUDGE