Wp/11585/2024 Of Sri Gulam Mustafa v. The Assistant Commissioner Of Income Tax

Digitallysigned byPRAKASH NLocation:HIGHCOURT OFKARNATAKA NC: 2024:KHC:21087 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13 DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV -WRIT PETITION NO. 11585 OF 2024 (TIT) BETWEEN: 1. SRI GULAM MUSTAFA S/O LATE SRI GULAM MUSTAFA, AGED ABOUT 54 YEARS, RESIDING AT NO.6 GM PEARL 1 STAGE, 1 PHASE, BTM LAYOUT BANGALORE - 560 068 … PETITIONER (BY SMT. VANI H., ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2), CENTRAL REVENUE BUILDING, QUEENS ROAD, BANGALORE - 560 001 … RESPONDENT (V/O DATED 22.04.2024 SRI M. DILIP., ADVOCATE ACCEPT NOTICE FOR RESPONDENT) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH AND SET ASIDE THE IMPUGNED ASSESSMENT ORDER BEARING DIN AND ORDER NO. ITBA/AST/S/144/2023-24/1062001290(1) DTD. 05.03.2024 PASSED BY THE RESPONDENT UNDER SECTION 144 OF THE ACT FOR THE ASSESSMENT YEAR 2022- 23 VIDE ANNEXURE-C AND THE DEMAND NOTICE BEARING DIN AND NOTICE NO. ITBA/AST/S/156/2023-24/ 1062001518 (1) DTD. 05.03.2024 ISSUED BY THE RESPONDENT UNDER SECTION 156 OF THE ACT VIDE ANNEXURE-D AND ETC. THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has called in question the validity of the assessment order dated 05.03.2024 passed by the respondent under Section 144 of the Income Tax Act, 1961 for the Assessment Year 2022-23 as per Annexure-C as well as Demand Notice at Annexure-D. The petitioner has also sought for setting aside of the show-cause notice dated 05.03.2024 issued by the respondent under Section 274 r/w Section 271 AAC(1) for the Assessment Year 2022-23. The petitioner has sought for consequential relief to direct the respondent to afford reasonable opportunity to the petitioner to furnish reply to the notice under Section 144 of the Act. 2. Learned counsel appearing for the petitioner Smt.Vani.H submits that the petitioner had sought for - 3 - adjudication in terms of Email dated 28.02.2024 addressed to the Assessing Officer stating that the old Auditor has resigned and a new Auditor was appointed on rotation basis and accordingly there was delay in replying to the said notice. 3. It is submitted that two weeks time was sought for submission of documents and opportunity to submit explanation be afforded and despite such request, same has been rejected on the ground that several opportunities earlier had been given and also that there was only two weeks time in March, 2024 within which time order is to be passed. 4. Insofar as contention regarding show-cause notice, an opportunity earlier provided as detailed at Sl.No.1 to 6 in the Table annexed in the Email communicated to the petitioner, learned counsel submits that they were not received. It is further submitted that even otherwise the fact of the authority was required to complete the assessment by the end of March, 2024, could not be a reason to reject affording of an opportunity as time was still available till the end of March, 2024. 5. Learned counsel for Revenue submits that opportunities have been granted and in light of the limited time available for assessment to be completed, no fault can be found as regards action of the respondents. 6. Heard both sides. 7. It is noticed that an opportunity has been requested as per Email dated 28.02.2024. The fact that assessment proceedings had to be completed by the end of March, 2024 by itself cannot be the reason for not affording an opportunity for the petitioner as time for completion of assessment proceedings having commenced much earlier the authority ought to have commenced proceedings on time. 8. In the interest of justice and taking note of nature of request made, it would be appropriate to afford an opportunity to the petitioner to reply to the show-cause 5. Learned counsel for Revenue submits that opportunities have been granted and in light of the limited time available for assessment to be completed, no fault can be found as regards action of the respondents. 6. Heard both sides. 7. It is noticed that an opportunity has been requested as per Email dated 28.02.2024. The fact that assessment proceedings had to be completed by the end of March, 2024 by itself cannot be the reason for not affording an opportunity for the petitioner as time for completion of assessment proceedings having commenced much earlier the authority ought to have commenced proceedings on time. 8. In the interest of justice and taking note of nature of request made, it would be appropriate to afford an opportunity to the petitioner to reply to the show-cause notice issued under Section 142 (1). Accordingly, the order at Annexure-C is set aside as also Demand Notice at Annexure-D and penalty notice at Annexure-E are set aside. The matter is remitted to the stage of reply to the show-cause notice. The petitioner to appear before the respondent on 10.07.2024 and make out reply to the show-cause notice. All contentions are kept open. 9. Accordingly, the petition is disposed off. Sd/- JUDGE NP