Wp/1473/2022 Of M/S Jssmvp Employees House Building v. The Addl/Joint/Deputy/Asst Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURU|DATED THIS THE 2 DAY OF FEBRUARY, 2022. BEFORE THE HON'BLE MR. JUSTICE S. SUNIL DUTT YADAV iWRIT PETITION NO.1473/2022 (TIT) BETWEEN: M/s. JSSMVP Employees House Building.Co-op Society|No.1, Dr. RajKumar RoadJSS Nagar,Mysore - 5/0 029, Represented by its PresidentSri. Puttarajappa S—Aged about 61 yearsSon of Sri. Gurumallappa. _ Petitioner (By Smt. Jinita Chatterjee & |Sri. S. Parthasarthi, Advocates) AND: 1]The Addl/Joint/Deputy/ Asst. Commissioner of Income Tax! Government of India Ministry of Finance Income-tax Department. National Faceless Assessment Centre. Delhi - 110 OO1. 2 |The Asst/Deputy Commissioner of Income-tax, Circle 1(1) & TPS, Ministry of Finance Income-tax Department. Room No.113, 1st Floor, Ayakar Bhavan REAC, Mysore - 5/0 O08. Karnataka .. Respondents. (By Sri. K.V.Aravind, Advocate) Tnis Writ Petition is filed under Articles 226 and 22/7 ofthe Constitution of India praying to quash the impugned|recovery notice dtd 21.12.2021 issued by the R-2 for theAssessment Year 2018-19 (Annx.A) and etc., This Writ Petition coming on for Orders, this day, theCourt made the following: ORDER The petitioner has sought for issuance of writ of|certiorari to quash the impugned recovery notice at'Annexure-A dated 21.12.2021 for the assessment year|2018-19|andAnnexure-B|dated|28.17.7071.for.theassessment year 2018-19. The petitioner has also sought for|quashing of the impugned assessment order and demand| notice for the assessment year 2018-19 at Annexure-C8 and.has sought for further direction to restrain the Department.from initiating steps to enforce the demand. 2.|Tne petitioner submits that after initial response.to the Department, notice was issued to the assessee|alongwiththequestionnaireON)10.17.701931.17.7019| /documents/information regarding payment of Rs.35|crores made to M/s. Shambavi Developers. It is submitted|that the assessee has requested for time, as the Board of Directors were newly elected and had taken charge recentlyand were required to understand the matter for which they|required further time. Though subsequent to such requestfor adjournment, time was granted, the assessee has not!furnished sources and details regarding the payments made|to M/s. Shambavi Developers and details of expenditures. and 3ShowCaUSeCnoticeWaSalso|issued|on04.03.2021, but the assessee nas not responded to the| Same and in light of the same, the Assessing Officer has|proceeded and completed the assessment proceedings while.placing reliance on Section 69C. The petitioner submits that.sufficient opportunity ought to have been given in light of|the peculiar facts including that the Board of Directors were|newly elected and required some time to understand thecase in detail. 4Looking into the order passed, where theAssessing Officer has taken note of non-explanation by the|assessee and has proceeded and completed the assessment|proceedings under Section 144, it would be appropriate andwould meet the interest of justice to afford another|Opportunity to the petitioner to put forth their case before|the Assessing Officer. — 5.|Accordingly, the assessment order is set aside.and matter is relegated to tne stage of reply to tne notices|of the Department dated 22.01.2021, 11.02.2021 and24.02.2021. The petitioner undertakes to co-operate for| expeditious conclusion of the assessment proceedings and is taken note of. Accordingly, the show cause notice cum draft|assessment order at Annexure-C/7IS.set aside andconsequently, the assessment order at Annexure-C8 is set|aside and so also the recovery notices at Annexures-A and B|are set aside. The matter is remitted back to respondent|No.1 to commence the matter from the stage of reply to thenotices dated 22.01.2021, 11.02.2021 and 24.02.2021. With the above observations, the petition is disposed off Sd/-JUDGE| RKA