Wp/10643/2024 Of Fusion Jewels Inida v. The Assessment Unit Income Tax

Digitally signedby CHETAN BCLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11 DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 10643 OF 2024 (TIT) BETWEEN: FUSION JEWELS INIDA, NO. 1649/52, 5 CROSS ROAD, BSK 1 STAGE, 2 BLOCK BANGALORE, KARNATAKA, INDIA 560 050. PAN AAHFF 2547A. REG UNDER PARTNERSHIP FIRM UNDER REGISTRAR OF FIRMS, REP BY H S RAJESH (PARTNER) …PETITIONER (BY SRI. BORKAR SHEETAL SUBODH.,ADVOCATE) AND: 1. THE ASSESSMENT UNIT INCOME TAX, DEPARTMENT, GOVERMENT OF INDIA, MINISTRY OF FINANCE, DELHI 110 001. DEPARTMENT, GOVERMENT OF INDIA, MINISTRY OF FINANCE, DELHI 110 001. 2. THE DEPUTY COMMISSIOENR OF INCOME TAX CIRCLE 3(1)(1), 2 FLOOR, B M T C BUS STAND, KORAMANGALA, BANGALORE 560 034. …RESPONDENTS (BY SRI.THIRUMALESH M .,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASH THE IMPUGNED ASSESSMENT ORDER DATED 19/03/2024, BEARING DIN AND ORDER NO. ITBA/AST/S/143(3)2/2023-24/1062947 327(1) PASSED U.S 143(3) R.W.S. 144B OF THE INCOME TAX ACT, 1961 IN RESPECT OF THE RELEVANT ASSESSMENT YEAR 2022-23 VIDE ANNEXURE-C PASSED BY R1 AUTHORITY, ALONG WITH THE SHOW CAUSE NOTICE DATED 04/03/2024, BEARING DIN NO. ITBA/AST/F/143(3)(SCN)/2023-24/10619 55667(1) OF THE RELEVANT ASSESSMENT YEAR 2022-23 PASSED BY THE R1 VIDE ANNEXURE-D AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this Petition, Petitioner seeks the following reliefs: “a) Issue a Writ of certiorari or in the like nature quashing the impugned assessment order dated 19/03/2024, bearing DIN and Order No. ITBA/AST/S/143(3)2/2023-24/1062947 327(1) passed u/s 143(3) r.w.s. 144B of the Income Tax Act, 1961 in respect of the relevant assessment year 2022-23 vide ANNEXURE-C passed by respondent No.1 authority, along with the show cause noticedated 04/03/2024, bearing DIN No. ITBA/AST/F/143(3)(SCN)/2023-24/10619 55667(1) of the relevant assessment year 2022-23 passed by the respondent No.1 vide ANNEXURE-D; b) Issue a Writ of Mandamus or in the like nature of writ, directing the concerned respondent authorities, not to proceed with any kind of coercive recovery in respect of impugned demand from the petitioner, with respect to the impugned assessment order dated 19/03/2024, bearing DIN and Order ITBA/AST/S/143(3)/2023-24/1062947 327(1) passed u/s 143(3) r.w.s. 144b of the Income Tax Act, 1961 in respect of the relevant assessment year 2022-23 under the Income Tax Act, 1961, vide ANNEXURE-Cpassed by the respondent No.1 authority; c) Issue a Writ of Prohibition or any other writ of like nature, directing the respondent authorities not to proceed with coercive steps by way of any proceedings of whatsoever in nature, till disposal of this present Writ Petition; and d) Pass such other or further orders as this Hon’ble Court may deems fit in the facts and circumstances of the case, in the interests of justice and equity.”. c) Issue a Writ of Prohibition or any other writ of like nature, directing the respondent authorities not to proceed with coercive steps by way of any proceedings of whatsoever in nature, till disposal of this present Writ Petition; and d) Pass such other or further orders as this Hon’ble Court may deems fit in the facts and circumstances of the case, in the interests of justice and equity.”. 2. In addition to reiterating the various contentions urged in the Petition, learned counsel for the Petitioner invited attention of this Court to the Show Cause Notice at Annexure – D dated 04.03.2024 to point out that the said Notice was in relation to Assessment year 2022-23 and not in respect of the Assessment year 2021 – 22. In this context, my attention is also invited to the impugned order at Annexure-C dated 19.03.2024 in order to contend that though the Show Cause Notice and the impugned order pertain only to the Assessment Year 2022-23 and the respondents have proceeded on the wrong premise that petitioner has not furnished/filed the Income Tax Returns for the Assessment year 2022-23 thereby arriving at an erroneous conclusion. It is also submitted that due to bona fide reasons and sufficient causes the petitioner could not file the Income Tax Returns for the Assessment Years 2021-22 and 2022-23 and if the impugned order is set aside and one more opportunity is provided to the Petitioner, he would file all the relevant documents in support of his defence and the respondents may consider the same and decide the matter afresh and in accordance with law. 3. Per contra, learned counsel for the Respondents would submit that there is no merit in the Petition and the same is liable to be dismissed. 4. As rightly contended by the learned counsel for the Petitioner that though the Show Cause Notice pertain to the year 2022-23 and the same did not related to the Assessment Year 2021-22, while passing the impugned order at Annexure-C dated 19.03.2024, the respondents have proceeded on the basis that the Petitioner as if he had not submitted Income Tax Returns for the Assessment Year 2021-2022. Therefore, in the light of the specific submission made by the Petitioner that he would produce relevant documents before the respondents, if one more opportunity is granted, I deem it just and appropriate to allow the petition and set aside the impugned order and remit the matter back to the respondents for reconsideration of the matter afresh and in accordance with law. 5. In the result, I make the following: ORDER (i) Petition is hereby allowed. (ii) The impugned order at Annexure-C is hereby set aside. (iii) The matter is remitted back to the Respondent No.2 for reconsideration afresh in accordance with law. for reconsideration afresh in accordance with law. (iv) Liberty is reserved in favour of the Petitioner to submit additional pleadings, documents etc., to be considered additional pleadings, documents etc., to be considered by the concerned respondent who shall provide sufficient and reasonable opportunity to the petitioner and proceed further with the matter, in accordance with law. sufficient and reasonable opportunity to the petitioner and proceed further with the matter, in accordance with law. All rival contentions of all aspects of the matter including limitation etc., are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE Bsv/List No.: 1 Sl No.: 23