Wp/282/2020 Of Sri Dwaraka Balaji Developers v. The Principal Chief Commissioner Of Income Tax Ap And Ts

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FIFTH DAY OF TVARCHTWO THOUSAND AND TWENTYTWO THOUSAND AND TWENTY PRESENT THE HON'BLE SRI JUSTICE M. S. RAMACHANDRA RAOANDTHE HON'BLE SRI JUSTICE T. AMARNATH GOUD WRIT PETITION NO: 282 OF 2020 Betwee n: Sri Dwaraka Balaji Developers, Rep.by its Partner, Chigurinta Narsimha Reddy,S/o Late Sri Agi Reddy, Aged 45 Years, Occupation Partner in D.No.7-112-98,Sri Vasavi Nagar Colony, Balapur, Saroornagar Mandal, Hyderabad-500005,Telangana ...pETrroNERAND '1 . The Principal Chief Commissioner of lncome Tax AP and TS, Hyderabad 0/o ThePrincipal Chief Commissioner of lncome Tax, C Block, 9th Floor, lT Towers, 10-2-3, A.C.Guards, Hyderabad-500004Principal Chief Commissioner of lncome Tax, C Block, 9th Floor, lT Towers, 10-2-3, A.C.Guards, Hyderabad-5000042. The Additional Commissioner of lncome Tax, Range [g, ]lT Towers, 2nd Floor, ACGuards, [\/asab Tank, Hyderabad-500004Guards, [\/asab Tank, Hyderabad-500004 3. The lncome Tax Officer, Range (9) Ward (4) lT Towers, 2nd Floor, AC Guards,lVlasab Tank, Hyderabad-500004lVlasab Tank, Hyderabad-500004 ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may be pleasedto issue any Writ or Order or Direction more particularly one in the nature of Writ ofto issue any Writ or Order or Direction more particularly one in the nature of Writ oflVandamus declaring the action 3rd Respondent in issuing the impugnedAssessment Order NO.|TBAlASf lsl14412019-21011022380379(1) dated 1511212019with demand of Rs.35,43,1341 as illegal, arbitrary, capricious and in utter violationof the Principles of Natural Justice lA NO: 1 OF 2020 Petition under Section 151 CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased to grantstay of all further proceedings pursuant the impugned Assessment OrderNO. ITBA/AST/SI 1 441201 9-21 0l 1 02238037 9(1 dated 1 51 1 21201 I with demand of) Rs.35,43,1341 and to consider to grant stay of the recovery of disputed tax ofRs.35,43,'1 34/- pending disposal of this writ Petition Counsel for the Petitioner: SRI T. S. MURTHY Counsel for Respondents: SRI K. RAJI REDDYSENIOR S.C. FOR INCOME TAX DEPARTMENT The Court made the following: ORDER HONOUR-\I}LE SRI JUSTICE N'l.S. RANTACH,\NDR,,\ RAO AND IIONOI]R \I}LE SRI JUSTICE T. AMARNA] H [(]OUD] WRIT PETITION No.282 OF 2020 ORDER (ORAL): (Per MSR,J) Petitioner in this writ petition has assailed t'ie order dated15.12.2019 passed by the 3"i respondent pursuant to a rrotice underSection 143(2) of the Income Tax Act, 1961 (for :hort 'lT Act'),issued electronically to the petitioner firm on 14.(18.2018 on theground that the petitioner did not respond to the notices issuedthereafter on 25.10.2019 and22.l1.2019 under Secticn 142(l) of theIT Act. 2. It is the contention of the leamed counsel fi rr the petitionerthat the Paftner of the petitioner, who has filed the u'rit prtition, is anilliterate person not having computer knowledge an<l at the time offiling the first income tax return of the firm, he had given rnobilenurnber and rnail address of the son ol another paflner 1br primarycommunication and has given auditor's mobile nu mb,r' and mailaddress fbr secondary communication. It is his cor ten:ion that theearlier notices which were received by the son of the c,ther partner hadnot been forwalded by the said individual to the petit one:r because ofwhich, there r.r'as a delay in responding to the nc,tice:s issued on14.08.2018, 25.10.2019 and 22.11.2019. It is contcnde:d that showcause notice dated 09.12.20 19 in physical form rvas sent to thedeponent of the affidavit filed in support of the writ petition on behalf ) SIa..' & [',t..\.,']\vP N0.282 of2020 ) SIa..' & [',t..\.,']\vP N0.282 of2020 of the petitioner through post on 12.12.2019 proposing assessmentunder Section 144 of the IT Act and he then sent a reply on12.12.2019 itsellseeking time till 20.12.2019, but, within two days on15.12.2019, the impugned assesslrent order has been passed. 3. Learned counsel for the petitioner ref'ers to the circularinstructions issued by the Director of Income Tax (Systems) to theentire Income Tax Departrnent vide F.No.CIT-ITBA/Misc.TB/2019-20 dated26.12.2019 informing all assessing officers that facilityof electronic submission of documents through 'e-proceeding' by theassessees shall be automatically closed only on 29.12.2019; that the3'd respondent is fully aware of this and tl.rough the 3'd respondentcould have granted time till 20.12.2019, he deliberately went aheadand passed the impugned order on 15.12.2019. 4. Though in the counter filed by the respondents, it iscontended that the petitioner did not respond to the notices dated14.08.2018, 25.10.2019 and 22.1 1.2019, it is not disputed that to theshow cause notice dated 09.12.2019, petitioner had responded on12.12.2019 requesting time till 20.12.2019 to file objections andmaterial before the 3'd respondent. But, strangely, without grantingthe time as sought by the petitioner,on 15.12.2019, a mere two daysafter receipt of the petitioner's request to hiu.r on 12.12.2019, the3'd respondent completed the assessment for the assessment year2017- l8 in a hurried manner depriving the petitioner of opportunity to tile objections tirough there was ample time till 31.12 2019 for him tocomplete the assessment. 5. Printu .facie, we are of the opinion that tlre action of the3"r respondent is arbitrary as he ought to have g'anted time tilt20.12.2019 to the petitioner to flle objections and documents. 6. Accordingly, the impugned assessmer t order dated15.12.2019 issued by the 3'd respondent is set aside ard the matter isremitted back to the 3'd respondent to pass a fresh ordr'r in accordancewith law; and the petitioner is granted two weeks time from the dateof receipt of a copy of this order to file objections arrd documentaryevidence in supporl of his contentions before the J"r respondent,which shall be considered by the 3'd respondent befrrre he passes afresh order. 7. The u rit petition is accordingly allowed. \o order as tocosts. As a sequel thereto, miscellaneous petitions, if t,ny, pending inthe writ petition stand closed.SD/.V.SDHAASSISTANT R ,TRUE COPY// SECTION-OFFICER To,1. The Principal [Chiel Commissioner of lncome Tax AP-and ][Tli ][Hyderabad ][O/o]+i;; b;i;;i;;i crier commiliion", [ot income ][rax, ][c ][Block ][')th ][l:loor' ][lr ][Towers']i o-2-9, n.C.cuards, [Hyderabad-500004]2ii" n,iiiti"i.rr con,ri6ri6n?rii [t-n-"ore ][Tu*, ][Range ][9, ][lT ] [rwers, 2nd ][Floor, AC]CuarOs, Masab [Tark, ][Hyderabad-500004 ]-- J. i;;l;;b;; il, [o'riJ".,'ni'UJtsiW"d ][t+l ][lr ][rowers' ][2nc Flcor' ][AC Guards']Ir,4asab Tank, [Hvde ][rabad-500004]4on" Cc to Sri [T. ] [Murthy, Advocate- ]5. 5il; dc i" [5ii ][r<. ][n"ii ][neoijv, ][Senior ][s ][c ][for ][[ncome ][rax ][[c ] ]6. Two CD CoPiesIVBCIVP1. The Principal [Chiel Commissioner of lncome Tax AP-and ][Tli ][Hyderabad ][O/o]+i;; b;i;;i;;i crier commiliion", [ot income ][rax, ][c ][Block ][')th ][l:loor' ][lr ][Towers']i o-2-9, n.C.cuards, [Hyderabad-500004]2ii" n,iiiti"i.rr con,ri6ri6n?rii [t-n-"ore ][Tu*, ][Range ][9, ][lT ] [rwers, 2nd ][Floor, AC]CuarOs, Masab [Tark, ][Hyderabad-500004 ]-- J. i;;l;;b;; il, [o'riJ".,'ni'UJtsiW"d ][t+l ][lr ][rowers' ][2nc Flcor' ][AC Guards']Ir,4asab Tank, [Hvde ][rabad-500004]4on" Cc to Sri [T. ] [Murthy, Advocate- ]5. 5il; dc i" [5ii ][r<. ][n"ii ][neoijv, ][Senior ][s ][c ][for ][[ncome ][rax ][[c ] ]6. Two CD CoPiesIVBCIVP DATE D: 05/03/2020 .riE- s T.i rd,to\:,)11 [t'tli][ (]i)-).ttlt ORDER WP.No.:282 of 2020 ALLOWING THE WTIIT' PETIT!ON WITIIOIJT COSTS p^LD t