Wp/15073/2021 Of Azuga Telematics Private Limited v. The Additional / Joint / Deputy / Assistant Commissioner Of Income Tax / Income Tax Officer

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9 DAY OF DECEMBER, 2021 BEFORE. THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR| #WRIT PETITION NO.15073 OF 2021 (JIT) BETWEEN: AZUGA TELEMATICS PRIVATE LIMITED|UNIT NO.A2, 7 FLOOR, DIVYASREE TECHNOPOLIS|BUILDING 4, 77 TOWN CENTER, HAL AIRPORT ROADYEMALUR, BANGALORE - 560 037REPRESENTED HEREIN BY ITS DIRECTOR|MR. BADRINATH ASODU KRISHNARAYJ ... PETITLONER. (BY SRI. SANDEEP HUILGOL, ADVOCATE) AND: 1.THE ADDITIONAL / JOINT / DEPUTYASSISTANT/ COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER,NATIONAL E-ASSESSMENT CENTRE, DELHI ROOM NO.401, 2 FLOOR, E-RAMPJAWAHARLAL NEHRU STADIUM|NEW DELHI-110003. 2.THE DEPUTY COMMISSIONER OFINCOME TAX CIRCLE 1 (1)(1), BANGALORE|BMTC BUILDING, 80 FEET ROAD, 6 BLOCKNEAR KHB GAMES VILLAGE, KORAMANGALA,BENGALURU-560095.... RESPONDENTS. (BY SRI K V ARAVIND, ADVOCATE )_ THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OFTHE CONSTITUTION OF INDIA PRAYING TO QUASH THEIMPUGNED FINAL ASSESSMENT ORDER DATED 12.05.7071|PASSED BY THE Ri U/S 143(3) R/W SECTIONS 144C(3) AND 144B OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENTYEAR 2017-18 ANNEXURE-A AND ETC.,, THIS WRIT PETITION COMING ON FOR PRELIMINARYHEARING IN *B’ GROUP, THIS DAY, THE COURT MADE THE.FOLLOWING THROUGH VIDEO CONFERENCE: ORDER In this petition, the petitioner seeks quasning of final.impugned assessment order at Annexure-A dated 12.05.2021,computation sheet dated 12.05.2021 at Annexure-Al anddemand notice at Annexure-AZ dated 12.05.2021 and for'otner reliefs. 2D.Heard learned counsel for petitioner and learnedcounsel! for respondents and perused the material on record. 3.In addition to reiterating the various contentionsurged in the petition and referring to the documents producedby the petitioner, jearned counsel for the petitioner submits|that subsequent to the Assessing Officer passing the draftAssessment Order on 07.04.2021, the Central Board of Direct|Taxes (CBDT) issued a circular dated 30.04.2021 extending|the time for filing objections to the draft Assessment Order upto 31.05.2021 as permitted under Section 144C(2)(b) of the|Income Tax Act, 1961 (for short ‘the I.T. Act’) in view of the| second wave of Covid-19 pandemic exigency. It is submittedtnat|despitetheaforesaidextensionOf time.granted/permitted by the CBDT up to 31.05.2021, the|Assessing Officer has proceeded to pass the impugned)Assessment Order on 12.05.2021 itself, mucn prior to the|extended period, wnichn was due to expire on 31.05.2021. It isfurther submitted that on 18.05.2021, the petitioner filed his|objections to the draft Assessment Order with the DRP and)also adaressed several Communications at Annexure-E series|ventilating its grievances, whicn have not been considered by the respondents and as such, the petitioner is before this|Court by way of the present petition. 4Per contra, learned counsel for the respondentssubmits that there is no merit in the petition and the same is_liable to De dismissed. 5.|As rightly contended by the learned counsel for)tne petitioner, the undisputed material on record clearlyindicates that subsequent to issuance of the draft AssessmentOrder dated 07.04.2021, the CBDT circular extended the timefor filing objections to the said order up to 31.05.2021; in 4Per contra, learned counsel for the respondentssubmits that there is no merit in the petition and the same is_liable to De dismissed. 5.|As rightly contended by the learned counsel for)tne petitioner, the undisputed material on record clearlyindicates that subsequent to issuance of the draft AssessmentOrder dated 07.04.2021, the CBDT circular extended the timefor filing objections to the said order up to 31.05.2021; in other words, thougn the period prescribed for filing objections|to the draft Assessment Order was supposed to expire on)06.05.2021, the same was extended up to 31.05.2021 up to|wnich date the petitioner was entitled to submit his|objections; in view of the extension of time up to 31.05.2021by virtue of the CBDT circular, the Assessing Officer clearly|committed an error in proceeding to pass the impugned order|on 12.05.2021, much prior to expiry of the extended period of time, which was due to expire on 31.05.2021. It is also.relevant to state that on 18.05.2021, the petitioner nas filed|his objections to the draft Assessment Order before the DRP|and the same is pending. Under these circumstances, I am of|the considered opinion that the impugned Assessment Order|passed py respondent No.1- Assessing Officer withoutawaiting directions from the DRP, before whom the matter|was pending pursuant to the petitioner filing nis objections|within the prescribed period is clearly arbitrary, ilegal and.without jurisdiction or authority of law and the same deserves|to pe quasned and necessary directions are to be issued to|tne DRP as well as the Assessing Officer in this regard. — 6.In the result, I pass the following: nms 5 ORDER (1)Tne petition is nereby|allowed (il)The impugned final assessment order|bearing No.ITBA/AST/S/143(3)/2021-22/bearing No.ITBA/AST/S/143(3)/2021-22/ 1032896847(1) at Annexure-A dated.12.05.2021, computation sneet bearing.No. ITBA/AST/S/216/2021-22/10328968/412.05.2021, computation sneet bearing.No. ITBA/AST/S/216/2021-22/10328968/4 (1)dated 17.05.2021 at Annexure-Al|and demand notice at Annexure-AZbearing No. ITBA/AST/S/156/2021-22/|10328968/75(1) dated 12.05.2021 arenereby quasned.and demand notice at Annexure-AZbearing No. ITBA/AST/S/156/2021-22/|10328968/75(1) dated 12.05.2021 arenereby quasned. (iil)Tne Dispute Resolution Panel (DRP) isdirected to conciude the proceedings by.considering the objections filed by thepetitioner, in accordance with law andSection 144C of the Income Tax Act,|1961.directed to conciude the proceedings by.considering the objections filed by thepetitioner, in accordance with law andSection 144C of the Income Tax Act,|1961. (iv)Upon.tneDRP|concluding tne|proceedings as provided under Section|144C referred toSUPIa, respondent No.1proceedings as provided under Section|144C referred toSUPIa, respondent No.1 -— Assessing Officer shall proceed furtherand.PpaSsappropriateorders.In accordance witn law.and.PpaSsappropriateorders.In accordance witn law. SD/- JUDGE