Wp/201172/2024 Of Chandrashekar Hebbale v. Additional/Joint/Deputy Asst. Commissioner Of Income-Tax And Ors

Digitallysigned byLUCYGRACELocation:HIGH COURTOFKARNATAKA NC: 2024:KHC-K:8122WP No. 2011/72 of 202 IN THE HIGH COURT OF KARNATAKA, |KALABURAGI BENCH DATED THLS THE 6 DAY OF NOVEMBER, 2024.BEFORETHE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR|,WRIT PETITION NO.201172 OF 2024 (TIT) BETWEEN: SHRI. CHANDRASHEKAR HEBBALES/O SHIVRAJ,AGE: 63 YEARS,HAVING ADDRESS AT:H.NO.15-2-95/1, BASAVA SANDESH |KUMBARWADA ROAD, GANESH NAGAR,BIDAR-585 403, KARNATAKA. | KUMBARWADA ROAD, GANESH NAGAR, ALSO AT:9-7-104, GANDHI GUNJ,GANDHI GUNJ S.O,BIDAR-585 403, KARNATAKA. PETITIONER| (BY SRI. SANDEEPANI A. NEGLUR & |SRI KRUPA SAGAR PATIL, ADVOCATES)SRI KRUPA SAGAR PATIL, ADVOCATES) AND: 1.ADDITIONAL/JOINT/ DEPUTY ASST.COMMISSIONER OF INCOME-TAX/INCOME TAX OFFICER,NATIONAL FACELESS ASSESSMENT CENTRE, |INCOME TAX DEPARTMENT,2ND FLOOR, JAWAHARLAL NEHRU STADIUM,|NEW DELHI-110 OO3.COMMISSIONER OF INCOME-TAX/INCOME TAX OFFICER,NATIONAL FACELESS ASSESSMENT CENTRE, |INCOME TAX DEPARTMENT,2ND FLOOR, JAWAHARLAL NEHRU STADIUM,|NEW DELHI-110 OO3. 2.INCOME TAX OFFICER, WARD 1, BIDAR, CMC NO.8-10-269,BASAVA SRI COMPLEX,STADIUM ROAD,BIDAR-585 401, KARNATAKA. 3.COMMISSIONER OF INCOME TAX (APPEALS),NATIONAL FACELESS APPEAL CENTRE, |NATIONAL FACELESS APPEAL CENTRE, | INCOME TAX DEPARTMENT,ROOM NO.245-A, NORTH BLOCK, |NEW DELHI-110 OOL.ROOM NO.245-A, NORTH BLOCK, |NEW DELHI-110 OOL. . RESPONDENTS (BY SRI. TIRUMALESH, ADVOCATE)| THIS WRIT PETITION IS FILED UNDER ARTICLES 2206AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, (1) SET ASIDE THE IMPUGNEDEX-PARTE ORDER|BEARINGDINNO.ITBA/NFAC/S/-250/2023-24/|1061133811(1) DATED 19.02.2024 PASSED BY RESPONDENT|NO.3 UNDER SECTION 250 OF THE INCOME-TAX ACT, 1961 IN.APPEAL NO.NFAC/2014-15/101555/71 FOR THE ASSESSMENTYEAR 2015-16 (ANNEXURE °‘A’); (II) DIRECT RESPONDENT NO.3 OR THE CONCERNED.APPELLATE AUTHORITY TO RECONSIDER THE APPEAL FILED BY|THE.PETITIONER.BEARINGAPPEALNO.NFAC/2014-15/10155571 (ANNEXURE ‘L-1°'), AGAINST THE ASSESSMENTORDER DATED 26.03.2022, IN ACCORDANCE WITH LAW AND|AS EXPEDITIOUSLY AS POSSIBLE AFTER ISSUING HEARING|NOTICES UNDER SECTION 250 OF THE ACT TO THE!REGISTERED PRIMARY EMAIL ADDRESS OF THE PETITIONER,|NAMELY|‘ ’AS|WELL.AS|VIAREGISTERED POST 7O THE REGISTERED ADDRESS OF THE|PETITIONER AS MENTIONED IN THE CAUSE TITLE AND AS| NC: 2024:KHC-K:8122WP No. 2011/72 of 202 WELL AVAILABLE ON HIS INCOME TAX PORTAL, AND TO}PROVIDE A FRESH AND REASONABLE OPPORTUNITY OF|HEARING TO THE PETITIONER AND TO ALSO PROVIDE WITH AREASONABLE AND EFFECTIVE OPPORTUNITY TO FILE WRITTENSUBMISSION/DOCUMENTS IN SUPPORT OF HIS APPEAL; (III) RESTRAIN RESPONDENT NO.1 AND RESPONDENTNO,Z2 FROM TAKING ANY COERCIVE STEPS TO RECOVERY THEDEMAND ARISING OUT OF THE ASSESSMENT ORDER BEARINGNO.ITBA/|AST/S/|147/2021-22/1041608748(1)DATED26.03.2022 PASSED BY RESPONDENT NO.1 UNDER SECTION|14/7 READ WITH SECTION 144 READ WITH SECTION 144B OFTHE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR|2015-16 TILL THE DISPOSAL OF THE APPEAL BY RESPONDENT|NO.3 OR THE CONCERNED APPELLATE AUTHORITY (ANNEXURE|H-1) AND TILL SUCH TIME AS THE PERIOD OF LIMITATION TO)FILE AN APPEAL TO THE ITAT AGAINST THE FRESH APPELLATEORDER EXPIRES; (IV) RESTRAIN THE AUTHORITIES OF THE INCOME TAX.DEPARTMENTFROM|PROCEEDING ANY|FURTHER|WITHRESPECT TO THE SHOW CAUSE NOTICE DATED 26.03.2027)BEARING DIN & NOTICE NO.ITBA/PNL/S/271(1)(C)/2021-22/1041608893(1) ISSUED BY RESPONDENT NO.1 UNDERSECTION 271(1)(C) READ WITH SECTION 274 OF THE ACT FOR.THE ASSESSMENT YEAR 2015-16 (ANNEXURE °J°) TILL THE.DISPOSAL OF THE APPEAL BY RESPONDENT NO.3 OR THE!CONCERNED APPELLATE AUTHORITY (ANNEXURE H-1) AND.TILL SUCH TIME AS THE PERIOD OF LIMITATION TO FILE AN) APPEAL TO THE ITAT AGAINST THE FRESH APPELLATE ORDER|EXPIRES; — (V) PASS SUCH OTHER OR FURTHER ORDER AS THIS.HON’BLE COURT MAY DEEM FIT IN THE FACTS AND!CIRCUMSTANCES OF THE CASE, AND IN THE INTEREST OF|JUSTICE AND EQUITY. | THIS PETITION COMING ON FOR ORDERS, THIS DAY,ORDER WAS MADE THEREIN AS UNDER: (IV) RESTRAIN THE AUTHORITIES OF THE INCOME TAX.DEPARTMENTFROM|PROCEEDING ANY|FURTHER|WITHRESPECT TO THE SHOW CAUSE NOTICE DATED 26.03.2027)BEARING DIN & NOTICE NO.ITBA/PNL/S/271(1)(C)/2021-22/1041608893(1) ISSUED BY RESPONDENT NO.1 UNDERSECTION 271(1)(C) READ WITH SECTION 274 OF THE ACT FOR.THE ASSESSMENT YEAR 2015-16 (ANNEXURE °J°) TILL THE.DISPOSAL OF THE APPEAL BY RESPONDENT NO.3 OR THE!CONCERNED APPELLATE AUTHORITY (ANNEXURE H-1) AND.TILL SUCH TIME AS THE PERIOD OF LIMITATION TO FILE AN) APPEAL TO THE ITAT AGAINST THE FRESH APPELLATE ORDER|EXPIRES; — (V) PASS SUCH OTHER OR FURTHER ORDER AS THIS.HON’BLE COURT MAY DEEM FIT IN THE FACTS AND!CIRCUMSTANCES OF THE CASE, AND IN THE INTEREST OF|JUSTICE AND EQUITY. | THIS PETITION COMING ON FOR ORDERS, THIS DAY,ORDER WAS MADE THEREIN AS UNDER: CORAM:HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR| ORAL ORDER (PER: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR) In this petition, the petitioner seeks the followingreliefs: A(1)Set aside the impugned ex-parte orderbearing DIN no.ITBA/ NFAC/S/ 250/2023-24/1061133811(1) dated 19.02.2024 passed byrespondent No.3 under Section 250 of the[ncome- | aAct,1961 In|AppealNo. NFAC/2014-15/10155571for.theAssessment Year 2015-16 (Annexure A’); | (ip)Direct respondent No.3 or the concernedAppellate Authority to reconsider the appealfiledDythepetitionerbearingAppeal NC: 2024:KHC-K:8122WP No. 2011/72 of 202 No.NFAC/2014-15/1015557]‘L-1°'), against the Assessment Order dated26.03.2022, in accordance with law and asexpeditiously as possible after issuing hearingnotices under Section 250 of the Act to theregistered primary email address of the.petitioner, namely ’ as)well as via registered post to the registeredadaress of the petitioner as mentioned in the.cause titie and as well available on his [ncomeTax Portal, and to provide a fresh andreasonabie opportunity of hearing to thepetitionerandtoalsoDrovidewithcdreasonable and effective opportunity to filewritten submission/documents in support ofnis appeal; | (Annexure (iP)Restrain respondent No.1 and respondentNo.2 from taking any coercive steps to.recovery the demand arising out of theAssessment Order bearing No.ITBA/ AST/S/|147/2021-22/1041608748(1)dated26.03.2027 passed by respondent No.1 underSection 14/7 read with Section 144 read withSection 144B of the Income-tax Act, 1961 forthe Assessment Year 2015-16 till the disposalof the appeal by respondent No.3 or theconcerned Appellate Authority (Annexure H-1)and till sucn time as the period of limitation to. file an appeal to the ITAT against the fresh|appellate order expires;appellate order expires; (iV) Restrain the authorities of the Income TaxDepartment from proceeding any further withrespect to the Snow Cause Notice dated26.03.2027 bearing DIN & Notice No.ITBA/PNL/S/ 271(1)(c)/ 202122/ 1041608893(1)issued by respondent No.1 under Section:2/1(1)(c) read witn Section 2/4 of the Act forthe Assessment Year 2015-16 (Annexure J*)till the disposal of the appeal by respondent.No.3 or the concerned Appellate Authority(Annexure H-1) and till such time as the.period of limitation to file an appeal to the.LIATagainstthe|freshappellate order.expires; and ©Department from proceeding any further withrespect to the Snow Cause Notice dated26.03.2027 bearing DIN & Notice No.ITBA/PNL/S/ 271(1)(c)/ 202122/ 1041608893(1)issued by respondent No.1 under Section:2/1(1)(c) read witn Section 2/4 of the Act forthe Assessment Year 2015-16 (Annexure J*)till the disposal of the appeal by respondent.No.3 or the concerned Appellate Authority(Annexure H-1) and till such time as the.period of limitation to file an appeal to the.LIATagainstthe|freshappellate order.expires; and © (Vv)Pass such other or further order as this.Hon'ble Court may deem fit in the facts and.circumstances of the case, and in the interest’ofjustice and equity. ° Hon'ble Court may deem fit in the facts and.circumstances of the case, and in the interest’ofjustice and equity. ° 2.|Heard the learned counsel for the petitioner and (Vv)Pass such other or further order as this.Hon'ble Court may deem fit in the facts and.circumstances of the case, and in the interest’ofjustice and equity. ° Hon'ble Court may deem fit in the facts and.circumstances of the case, and in the interest’ofjustice and equity. ° 2.|Heard the learned counsel for the petitioner and the learned counsel for the respondents and perused thematerial on record. 3.)A perusal of the material on record will indicate| that, aggrieved by the.exparteAssessment Order dated NC: 2024:KHC-K:8122WP No. 2011/72 of 202 26.03.2022 passed by the respondents, the petitioner filedan appeal on 20.06.2022 along with written submissions.In the said appeal, the petitioner contended that theearlier notices and assessment order had been issued/sent|not to the petitioner or his registered e-mail address, but.to the e-mail address of one Kashinath Barule, as a result|of which, the petitioner did not receive the noticespreceding the Assessment Order on account of which, ne.could not submit replies, nor contest the proceedings,which culminated in the|exparteAssessment Order. It is.contended that despite the said specific contention urgedby|thepetitionerinthe|appeal,|the|respondentssent/isSuedtnenearingnotices|dated04.04.2023,20.06.2023 and 10.07.2023 once again to the aforesaidincorrect e-mail address of Kashinath Barule and did notsend the same to the petitioner or his registered e-mailaddress. It is also contended that subsequently, thepetitioner was hospitalized and was under bed rest due tonealth issues and as such, the hearing notice dated17.01.2074 issued under Section 250 of the Income Tax Act sent to his registered e-mail ID could not be replied toby him pursuant to which, the 3[;C]respondent No.3proceeded to pass the impugned|ex-parteorder dated19.02.2024 at Annexure-A, dismissing the appeal filed by.the petitioner by noticing his absence, without providingsufficient or reasonable opportunity to the petitioner, wnois before this Court by way of the present petition. — 4 iIt is contended that the inability and omission|on the part of the petitioner to appear before therespondents in the appeal was due to the aforesaidDOnafide reason, Unavoidable circumstances and sufficient|cause and as such, it is necessary to set aside theimpugnedexparteorder and remit the matter back to the|3[;C]respondent — Appellate Authority for reconsideration of|the appeal filed by the petitioner on 20.06.2022 afresn inaccordance with law, after providing sufficient andreasonable opportunity to the petitioner and hearing him. NC: 2024:KHC-K:8122WP No. 2011/72 of 202 5.|Per contra, learned counsel for the respondents|submits that there is no merit in the petition and that thesame Is liable to be dIsmISsSecC 6.|A perusal of the material on record including|the impugned order passed by the 3[;C]respondent -|Appellate Authority will indicate that it is specifically heldthat the appellant did not appear and prosecute the appealdiligently, as a result of which, the 3[;C]respondent passedthe impugnedexparteorder, dismissing the appeal filed bythe petitioner. J |Under these circumstances, in the light of the)Specific assertion on the part of the petitioner that nisinability and omission to appear before the 3[;C]respondent.- Appellate Authority and prosecute the appeal on meritswas due to bonafide reasons, Unavoidable circumstances|and sufficient cause, I deem it just and appropriate to setaside the|impugnedorder.at.Annexure-A|dated|19.07.7074|and|remit.tnematterpack|LO the ‘[;C]respondent for reconsideration afresh in accordance| with law.. 8 _In the result, I pass the following: ORDER| The petition is allowed. The impugned order at Annexure-A dated) 19.02.2024 passed by the 3[;C]respondent and the consequent notices are nereby set aside. J |Under these circumstances, in the light of the)Specific assertion on the part of the petitioner that nisinability and omission to appear before the 3[;C]respondent.- Appellate Authority and prosecute the appeal on meritswas due to bonafide reasons, Unavoidable circumstances|and sufficient cause, I deem it just and appropriate to setaside the|impugnedorder.at.Annexure-A|dated|19.07.7074|and|remit.tnematterpack|LO the ‘[;C]respondent for reconsideration afresh in accordance| with law.. 8 _In the result, I pass the following: ORDER| The petition is allowed. The impugned order at Annexure-A dated) 19.02.2024 passed by the 3[;C]respondent and the consequent notices are nereby set aside. The.matter.1S|remittedpack|tO|‘[;C]respondent.AppellateAutnority for|reconsideration of the appeal at Annexure-L1|dated 20.06.2022 filed by the petitioner afresn‘[;C]respondent.AppellateAutnority for|reconsideration of the appeal at Annexure-L1|dated 20.06.2022 filed by the petitioner afresn the | after|providingsufficient and|reasonableopportunity to the petitioner and hearing nim.opportunity to the petitioner and hearing nim. and in accordance with law as expeditiously as. possible. IV.It is further directed that till disposal of the. appeal|DYtne‘[;C]respondent-AppellateAuthority, the respondents shall not take any.Authority, the respondents shall not take any. ���������������������������������������� 8;9D6864B46G9�D:9;D6G9�74987�B@B6374�459� 894646:39;��� )*��' ������ ������$��(�&����� �������674��:������>��:�����