Wp/1369/2022 Of K J Foundation v. Additional/Joint/Deputy/Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 2 DAY OF FEBRUARY, 2022BEFORE. THE HON BLE MR.JUSTICE S. SUNIL DUTT YADAV|%WRIT PETITION No.1369/2022 (TIT) BETWEEN K.J. FOUNDATION58/1, THUBARAHALLIBEHIND SRIRAM SAMRUTHI APARTMENTS,|WHITEFIELD ROAD,BANGALORE - 400 06/..PAN: AABTK11/78NREPRESENTED BY ITS TRUSTEEMR, DARAYUS KEKI PALIA. .. PETITIONER | (BY SRI BALACHANDRAN B.S., ADVOCATE) AND 1.ADDITIONAL/JOINT/DEPUTY/ASSISTANT| COMMISSIONER OF INCOME TAX/ INCOME-TAX OFFICERNATIONAL E-ASSESSMENT CENTRE,|E RAMP, JAWAHARLAL NEHRU STADIUMNEW DELHI - 110 003.NATIONAL E-ASSESSMENT CENTRE,|E RAMP, JAWAHARLAL NEHRU STADIUMNEW DELHI - 110 003. 2.ASSISTANT COMMISSIONER OF INCOME TAX EXEMPTION CIRCLE-1, BANGALORE, UNITY BUILDING ANNEXE, MISSION ROAD,BENGALURU - 560 O77.UNITY BUILDING ANNEXE, MISSION ROAD,BENGALURU - 560 O77. 3.PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, EXEMPTION |UNITY BUILDING ANNEXE,MISSION ROAD,UNITY BUILDING ANNEXE,MISSION ROAD, BENGALURU - 560 O27/. 4THE CENTRAL BOARD OF DIRECIT TAXES THROUGH THE CHAIRPERSON DEPARTMENT OF REVENUE GOVERNMENT OF INDIA NORTH BLOCK, NEW DELHI - 110 OOL. 5.UNION OF INDIA. THROUGH ITS FINANCE SECRETARY DEPARTMENT OF REVENUE MINISTRY OF FINANCE, 3RD FLOOR,JEEVAN DEEP BUILDING,SANSAD MARG,NEW DELHI - 100 OOL... RESPONDENTSJEEVAN DEEP BUILDING,SANSAD MARG,NEW DELHI - 100 OOL... RESPONDENTS (BY SRI K.V.ARAVIND, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND|22/7 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ASSESSMENT ORDER DATED 30.03.2071 PASSED BY)THE R-1 FOR THE AY-2018-19 UNDER SECTION 143(3)|R.W.S.143(3A) AND 143(3B) OF THE ACT ALONG WITH THE|COMPUTATION SHEET DEMAND NOTICE AND PENALTY NOTICE|VIDE ANNEXURE-G TO F3 AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT, MADE THE FOLLOWING: ORDER Petitioner nas filed the present writ petition seeking.issuance of appropriate writ to set aside the assessment order dated 30.03.2021 passed by the 1[4-]respondent forthe assessment year 2018-19 under Section 143(3) readwith Sections 143(3A) and 143(B) of the Income Tax Act and nas aiso sought for setting aside of the computationsheet, demand notice and penalty notice at Annexures - Gl,G2 and G3 respectively. 2.Petitioner nas contended tnat ne nas filed Nil~returns and the procedure prescribed under Section 144(B).of the Income Tax Act ought to nave been followed andSection 144(B) Clause (xiv) contemplates passing of a draftassessment order and procedure to be followed thereon in-the event of any variation. It is further submitted that inlignt of the Nil returns filed by the petitioner and theAssessing Officer having rejected exemption and passed anassessment order, ougnt to nave followed the procedure|under Section 144B(xiv) of the Income Tax Act and oughtto have been forwarded the draft assessment order and.followed the procedure thereon. — 3)Insofar as the said procedure not having beenfollowed, learned counsel for the Department is unable tocontrovert tne said contention. 4Noticing that the petitioner nad filed Nil Returns:and also noticing the order passed whereby demand hasbeen raised on the basis of variation, it could be said that ifthere was variation, procedure of draft assessment order as_contemplated under Section 144B(xiv) of the Income Tax.Act ought to Nave been made and procedure prescribedougnt to nave been followed for completing the assessment.proceedings. 5.In light of the above, assessment order atAnnexure-G is set aside. So also the computation sheet,demand notice and penalty notice at Annexures - G1, G2.and G3 respectively are set aside. Tne matter is remittedDack to respondent No.1 witn a direction to redo tneassessment proceedings in light of the procedure underSection 144B(xiv) of the Income Tax Act. The writ petition is|disposed off Sd/- JUDGE|