Wp/23402/2022 Of Modala Venkataramaiah v. The Income Tax Officer

IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 8 DAY OF DECEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR –WRIT PETITION No.23402 OF 2022 (T IT) BETWEEN: MODALA VENKATARAMAIAH, S/O ESHWARAIAH, AGED 67 YEARS, AGRICULTURIST, K.M.ROAD, GAVANAHALLY, CHIKKAMAGALURU – 577 101, KARNATAKA. (BY SRI.DINESH RAO N., ADVOCATE) …PETITIONER AND: 1. THE INCOME TAX OFFICER, WARD 2, INCOME TAX OFFICE, COURT ROAD, CHIKKAMAGALURU – 577 101. WARD 2, INCOME TAX OFFICE, 2. CENTRAL BOARD OF DIRECT TAXES, THROUGH THE CHAIRPERSON, DEPARTEMNT OF REVENUE, MINSITRY OF FINANCE, NORTH BLOCK, NEW DELHI – 110 002. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU – 1, BMTC BUIDLING, 80 FEET ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU – 560 095. (BY SRI.M.DILIP, ADVOCATE) …RESPONDENTS THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED 23.04.2021 IN RESPECT OF THE A.Y. 2018-19 COPY OF WHICH IS PRODUCED AT ANNEXURE - E AND DEMAND NOTICE DATED 23.04.2021 COPY OF WHICH IS PRODUCED AS ANNEXURE – G AND ETC., THIS W.P. COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER In this petition, the petitioner has sought for the following reliefs: i. Issue a writ of Certiorari quashing the Assessment order dated 23.04.2021 in respect of Assessment year 2018-19 copy which is produced at Annexure-E and Demand Notice dated 23.04.2021 copy of which is produced as Annexure-G, Assessment order dated 23.04.2021 in respect of Assessment year 2018-19 copy which is produced at Annexure-E and Demand Notice dated 23.04.2021 copy of which is produced as Annexure-G, ii. And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity. Court deems fit and proper in the interest of justice and equity. 2. Heard learned counsel for the petitioner, learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that pursuant to the petitioner filing his income tax returns for the assessment year 2018-19 on 29.03.2019, the respondents issued a notice dated 24.10.2019. Due to Covid-19 pandemic exigency, the petitioner could not file his reply and thereafter the respondents passed exparte assessment order on 23.04.2021. It is submitted that the inability and omission on the part of the petitioner to respond to the notice issued by the respondents was due to bonafide reasons, sufficient cause and unavoidable circumstances and without considering the same, the respondents have proceeded to pass the impugned ex-parte assessment order and consequential demand notice without providing sufficient or reasonable opportunity to the petitioner, who is before this Court by way of the present petition. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5. The material on record discloses that it is the specific assertion on the part of the petitioner that due to bonafide reasons, sufficient cause and unavoidable circumstances he was not in a position to submit his reply to the notice dated 24.10.2019 issued under Section 142(1) of the Income Tax Act, 1961, which culminated in the impugned ex-parte order being passed by the respondents. Under these circumstances, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner to submit his reply along with documents to the aforesaid notice under Section 142(1) of the I.T. Act and to contest the proceedings, I deem it just and appropriate to set aside the impugned assessment order and consequential demand notice and remit the matter back to the concerned respondent for reconsideration afresh in accordance with law. to the notice dated 24.10.2019 issued under Section 142(1) of the Income Tax Act, 1961, which culminated in the impugned ex-parte order being passed by the respondents. Under these circumstances, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner to submit his reply along with documents to the aforesaid notice under Section 142(1) of the I.T. Act and to contest the proceedings, I deem it just and appropriate to set aside the impugned assessment order and consequential demand notice and remit the matter back to the concerned respondent for reconsideration afresh in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned assessment order dated 23.04.2021 vide Annexure-E and the demand notice dated 23.04.2021 vide Annexure-G are 23.04.2021 vide Annexure-E and the demand notice dated 23.04.2021 vide Annexure-G are hereby quashed. (iii) The matter is remitted back to the concerned respondent for reconsideration afresh in accordance with law. (iv) Liberty is reserved in favour of the petitioner to produce additional pleadings, documents etc., before the concerned, who shall provide the petitioner an opportunity of personal hearing and proceed further in the matter. Sd/- JUDGE KTY/BMC