Wp/19931/2021 Of Sri Jayendra Puri Swami v. The Additional/Joint/ Deputy Assistant Commissioner Of Income Tax

Digitally signedby VIJAYA PLocation: HighCourt ofKarnataka NC: 2023:KHC:24300WP No. 19931 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 13 DAY OF JULY, 2023 BEFORE THE HON ' BLE MR JUSTICE S SUNIL DUTT YADA&WRIT PETITION NO. 19931 OF 2021 (TIT) BETWEEN: SRI. JAYENDRA PURI SWAMI,S/O VENKATACHALAM,AGED ABOUT 61 YEARS,No.1, SRI KAILASH ASHRAMAMAHASAMSTHANA TRUST,SRI RAJARAJESHWARI NAGAR, BENGALURU —- 560 098. PETITIONER (BY SRI. NARENDRA KUMAR J JAIN ANDMs. GEETHA RANI K., ADVOCATES) AND: 1.THE ADDITIONAL/JOINT/DEPUTY ASSISTANTCOMMISSIONER OF INCOME TAX,COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER,NATIONAL FACELSS-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT,MINISTRY OF FINANCE, ROOM NO.401, 2 FLOOR,E-RAMP, JAWAHARLAL NEHUR STADIUM,|DELHI - 110 003.NATIONAL FACELSS-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT,MINISTRY OF FINANCE, ROOM NO.401, 2 FLOOR,E-RAMP, JAWAHARLAL NEHUR STADIUM,|DELHI - 110 003. D2THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE 1(2)(2), BMTC BUILDING,80 FEET ROAD, KORMANGALA,BENGALURU - 560 O95.CIRCLE 1(2)(2), BMTC BUILDING,80 FEET ROAD, KORMANGALA,BENGALURU - 560 O95. .. RESPONDENT (BY SRI. E.I.SANMATHI, ADVOCATE). THIS WP [IS FILED UNDER ARTICLES 226 AND 22/7 OF THCONSTITUTION OF INDIA PRAYING TQ QUASH AS FAR AS THEPETITIONER IS CONCERNED THE IMPUGNED ASSESSMENT ORDER| -).- NC: 2023:KHC:24300WP No. 19931 of 2021 DATED 27.09.2021 ISSUED BY THE LEARNED RI U/S 144 R.W.S—144B FOR A.Y.2019-20, ENCLOSED IN ANNEXURE-A AND ETC.| THIS PETITION, COMING ON FOR PRELIMINARY HEARING,|THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has sought for setting aside of theAssessment Order at Annexure-A dated 27.09.2021 passed.under Section 144 read with Section 144B of the Income TaxAct, 1961 (for short ‘the Act') for the Assessment Year - 2019-2020 and has sought for setting aside of the Demand Notice at|Annexure-B and Penalty Notice at Annexure-C. 2D.Learned.counselSr. |NarendraKumar.J.Jain appearing for the petitioner submits that there is a violation of principles of natural justice insofar as, during the course of theassessment proceedings, snow-cause notice was issued on.14.09.2021 calling for a reply on 17.09.2021 and that the|petitioner had sought for additional time by way of motion foradjournment.On|16.09.7207 andsought|for.time|til]02.10.2021, which has not been adverted to in the assessment.order and accordingly, the assessment order may be set aside.and an opportunity be granted to the petitioner to reply to the.show-cause notice dated 14.09.2021. -3- NC: 2023:KHC:24300WP No. 19931 of 2021 3.Srl. E.I.Sanmathi,learned.counselfor.therespondents-revenue would submit that in light of the limitation concluding on 30.09.2021, the question of giving further timedid not arise and such procedure is permissible in terms of the.Standard Operating Procedure dated 03.08.2022 and further|sSuDMmiIts that the snow-cause notice dated 14.09.2021 waslast of all notices and prior to tnat, the petitioner has not been.diligent in responding to the earlier notice 4.Heard learned counsel for the petitioner and learnedcounsel for the respondents. 5.It is noticed that in the Assessment Order, the|Assessing Officer has taken that there is no reply filed to the|show-cause notice dated 14.09.2021 and proceeded. It is not.in dispute that in terms of the adjournment application whicn|finds a mention in the e-portal at Annexure-G, motion of.adjournment was made on 16.09.2021 seeking for ansadjournment up to 02.10.2021. There is no reference in the.Assessment Order regarding the motion of adjournment. Even.if it is assumed that the petitioner has not been diligent insofar|as earlier proceedings is concerned, the last show-cause notice| 4.Heard learned counsel for the petitioner and learnedcounsel for the respondents. 5.It is noticed that in the Assessment Order, the|Assessing Officer has taken that there is no reply filed to the|show-cause notice dated 14.09.2021 and proceeded. It is not.in dispute that in terms of the adjournment application whicn|finds a mention in the e-portal at Annexure-G, motion of.adjournment was made on 16.09.2021 seeking for ansadjournment up to 02.10.2021. There is no reference in the.Assessment Order regarding the motion of adjournment. Even.if it is assumed that the petitioner has not been diligent insofar|as earlier proceedings is concerned, the last show-cause notice| is a matter that is subjected to scrutiny. If that were to be so,non-consideration of the adjournment application, which is on.record by passing an order while passing the Assessment Order.renders the Assessment Order illegal. Accordingly, the|Assessment Order at Annexure-A is set aside; the matter isremitted to the stage post notice dated 14.09.2021. The.petitioner to make out his reply to the said notice and theAssessing Officer to proceed after giving due opportunity as sought for. Consequently, Demand Notice at Annexure-B and|Penalty Notice at Annexure-C are set aside. All contentions are kept open. Sd/-.JUDGE|