Wa/723/2018 Of The Assistant Commissioner Of Income Tax v. M/S Karnataka Industrial Area Development Board

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25 DAY OF JUNE, 2018 PRESENT HON’BLE MR.JUSTICE DINESH MAHESHWARI, CHIEF JUSTICE AND HON’BLE MR.JUSTICE KRISHNA S DIXIT -WRIT APPEAL NO.723 OF 2018 (TIT)c/w WRIT APPEAL NO.722 OF 2018 IN WRIT APPEAL NO.723 OF 2018 BETWEEN: 1.THE ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS) CIRCLE-1, 6 FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560 027. (EXEMPTIONS) CIRCLE-1, 6 FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560 027. 2.THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) 6 FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560 027. (EXEMPTIONS) 6 FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560 027. ... APPELLANTS (BY SRI E.R. INDRAKUMAR, SENIOR COUNSEL FOR SRI SANMATHI E I. ADVOCATE) AND: M/S. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD # 49, 4 & 5 FLOORS, - 2 - KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU-560 001. REP. BY CEO & EM SRI. PANKAJ KUMAR PANDEY ... RESPONDENT (BY SRI CHYTHANYA K.K., ADVOCATE) --- THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER DATED 02/01/2018 PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NO.1863/2017. IN WRIT APPEAL NO.722 OF 2018 BETWEEN 1.THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) CIRCLE-1, 6 FLOOR, UNITY BUILDING ANNEXE MISSION ROAD, BENGALURU-560 027 2.THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) 6 FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU-560 027 ... APPELLANTS (BY SRI E.R. INDRAKUMAR, SENIOR COUNSEL FOR SRI SANMATHI E.I., ADVOCATE) ANDM/S KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD #49, 4 & 5 FLOORS, KHANIJA BHAVAN, RACE COURSE ROAD BENGALURU-560 001 REP. BY CEO & EM SRI. PANKAJ KUMAR PANDEY ... RESPONDENT (BY SRI CHYTHANYA K.K., ADVOCATE) THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER DATED 02.01.2018 PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NO.25223/2016. THESE APPEALS COMING ON FOR PRELIMINARY HEARING THIS DAY, THE CHIEF JUSTICE DELIVERED THE FOLLOWING: JUDGMENT These intra-Court appeals are directed against the order dated 02.01.2018, as passed by the learned Single Judge of this Court in the respective writ petitions filed by the respondent – Karnataka Industrial Area Development Board, whereby the learned Single Judge, while disapproving the orders passed by the appellant – Deputy Commissioner of Income Tax (Exemptions), Circle-I, Bengaluru, directing special audit of the accounts of the writ petitioner, has extended one more opportunity to the Assessing Authority to reconsider the matter with reference to the objections and the submissions of the writ petitioner – assessee. Learned counsel for the appellants has today filed a memo along with the copy of the assessment order dated 28.02.2018, as passed by the Assessing Authority after passing of the impugned order by the learned Single Judge. It is also pointed out that appeals against such orders have been filed, which are pending. In view of the basic fact that after passing of the order impugned, assessment orders have already been passed and appeals against such orders have also been filed, which are pending before the Appellate Authority, in our view, no adjudication appears requisite in these appeals. As regards certain observations occurring in the impugned order dated 02.01.2018, particularly in paragraphs 15 to 17, suffice would be to say that such observations could only be read as indicative of the basis for arriving at the ultimate conclusion by the learned Single Judge that the respondent – Assessing Authority ought to consider the objections and the written submissions filed by the assessee in the correct perspective and to pass fresh orders. In view of the basic fact that after passing of the order impugned, assessment orders have already been passed and appeals against such orders have also been filed, which are pending before the Appellate Authority, in our view, no adjudication appears requisite in these appeals. As regards certain observations occurring in the impugned order dated 02.01.2018, particularly in paragraphs 15 to 17, suffice would be to say that such observations could only be read as indicative of the basis for arriving at the ultimate conclusion by the learned Single Judge that the respondent – Assessing Authority ought to consider the objections and the written submissions filed by the assessee in the correct perspective and to pass fresh orders. In our view, the observations foregoing are suffice to close these matters. However, in the interest of justice, it is considered appropriate and hence, further observed that the Appellate Authority would be expected to deal with the matter on its merit and the observations occurring in the order impugned shall not be considered decisive of the matter. With the observations foregoing, these appeals are treated as infructuous and stand disposed of as such. The pending interlocutory applications also stand disposed of. Sd/- CHIEF JUSTICE Sd/- JUDGE ca