Wp/3801/2018 Of Mr Vishal Agarwal v. The Deputy Commissioner Of Income Tax

IN THR HIGH COURT OF KARNATAKA AT BENGALURU DATBD THIS THER 2 DAY OF APRIL, 2018| BEFORE: THR HON’BLE MRS. JUSTICK S.SUJATHA W.P.No.3801/2018 c/w W.P.Nos.5073/2018, 8027/2018, 8028/2018, 12266/2018, 12268/2018, 12270/2018,. 12271/2018, 12273/2018, 12275/2018 AND 13174/2018 (TIT) IN W.P.NO.3801/2018: BETWEEN: Mr. VISHAL AGARWAL|9/O Mr. SAWARMAL AGARWALAGED ABOUT 40 YBARS|R/AT No.28, 4 CROSSLALBAGH ROAD, K.5S. GARDENBANGALORE -560027. _.. PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THERE DEPUTLY COMMISSIONER OF INCOME TCIRCLE — 7 (2) (1), ROOM No.318, |/ FLOOR, BMTC BUILDING,80 FEET ROAD, 6[‘T]BLOCK,KORAMANGALA, BANGALORE -o60090.. RESPONDENT. IBY SRI E.I. SANMATHI, ADV. FORSRI K.V.ARAVIND, ADV.) -9.- THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 148 (3).OF THE INCOME TAX ACT, 1961, DATED 29.12.2017 FOR THEASSESSMENTYRAR2015-16ANNEX-C|ANT)CONSEQUENTIALNOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 29.12.2017 FOR THE ASSESSMENT YEAR2015-16 IL.E., ANNEX-Cl1 AND ETC IN W.P.NO.5073/2018; BETWEEN: SMI HOGEITHOPPALUBASAVARAJA SHITTY RADHAW/O Mr. G.SOMNATHAGED ABOUT 37 YBARS|R/AT VARSH, NEAR HORTICULTURE OFFICEV.P. EXTENTION, CHITRADURGA-97/70501 ... PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICKBRWARD-2, TAMATKAL ROADMEDEHALLI, CHITRADURGA-9577502. _. RESPONDENT. [BY SRI E.I. SANMATHI, ADV. FORSRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSITIUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 148 (8).OF THE INCOME TAX ACT, 1961, DATED 29.12.2017 FOR THE|ASSESSMENTYRAR2015-16ANNEX-C|ANT)CONSEQUENTIALNOTICEOF)DEMANDISSUEDBY|RESPONDENT DATED 29.12.9017 FOR THR ASSKHSSMEBNT YBA2015-16 IL.E., ANNEX-Cl1 AND ETC IN W.P.NO.8027/2018; BETWEEN: Mr. PARAS TARACHAND CHOWATIA -3- 9/O TARACHAND M CHOWATIAAGED ABOUT 46 YBARS|R/AT No.33, SUHANI VILLA.MIDDLE SCHOOL ROAD, V.V. PURAMBANGALORE -560004._.. PETITIONER| IBY SRI HARISH.V.S., ADV.| AND:THE INCOME TAX OFFICKBRCIRCLE — 5 (2) (1)ROOM No.316, 3 KFLOOR,BMTC BUILDING, 80 FEET ROAD'[‘T]BLOCK, KORAMANGALA|BANGALORE -560095._. RESPONDENT. [BY SRI E.I. SANMATHI, ADV. FORSRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/7 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 148 (8).OF THE INCOME TAX ACT, 1961, DATED 29.12.2017 FOR THEASSESSMENTYRAR2015-16ANNBHWX-ANT)CONSEQUENTIALNOTICEOF)DEMANDISSUEDBY|RESPONDENT DATED 29.12.9017 FOR THR ASSKHSSMEBNT YBA2015-16 LE., ANNEX-C AND ETC.IN W.P.NO.8028/2018;BETWEEN:Mrs. SONA PARAS CHOWATIAW/O PARAS TARACHAND CHOWATIAAGED ABOUT 44 YBARS|R/AT No.33, “SUHANI VILLA”MIDDLE SCHOOL ROAD, V.V. PURAMBANGALORE-5600004.... PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICKBR -4- CIRCLE — 95 (2) (4)ROOM No.308, 3 KLOOR,BMTC BUILDING, 380 FEET ROAD' BLOCK, KORAMANGALA|BANGALORE -560095. _. RESPONDENT. |BY SRI E.I. SANMATHI, ADV. FOR SRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 1483 (8)OF THE INCOME TAX ACT, 1961, DATED 29.12.2017 FOR THEASSESSMENTYRAR2015-16ANNE X-CANDCONSEQUENTIALNOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 29.12.2017 FOR THE ASSESSMENT YEAR2015-16 L.E., ANNEX-Cl1 AND ETC. IN W.P.NO.12266/2018: BETWEEN: SMI MALASANI LALITHAMMA|W/O Mr. M.R.SATHYANARAYANA SHETTYAGED ABOUT 57 YBARS|R/AT 1[S|]CROdsS»s, VIDYA NAGACHITRADURGA-577501. |_.. PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICERWARD - 1, TAMATKAL ROADMBDBHALLICHITRADURGA-57/7/502._. RESPONDENT. IBY SRI E.I. SANMATHI, ADV. FOR _. RESPONDENT. |BY SRI E.I. SANMATHI, ADV. FOR SRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 1483 (8)OF THE INCOME TAX ACT, 1961, DATED 29.12.2017 FOR THEASSESSMENTYRAR2015-16ANNE X-CANDCONSEQUENTIALNOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 29.12.2017 FOR THE ASSESSMENT YEAR2015-16 L.E., ANNEX-Cl1 AND ETC. IN W.P.NO.12266/2018: BETWEEN: SMI MALASANI LALITHAMMA|W/O Mr. M.R.SATHYANARAYANA SHETTYAGED ABOUT 57 YBARS|R/AT 1[S|]CROdsS»s, VIDYA NAGACHITRADURGA-577501. |_.. PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICERWARD - 1, TAMATKAL ROADMBDBHALLICHITRADURGA-57/7/502._. RESPONDENT. IBY SRI E.I. SANMATHI, ADV. FOR SRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSITIUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 148 (3).OF THE INCOME TAX ACT, 1961, DATED 28.12.2017 FOR THE| -5- ASSESSMENTYRAR2015-16ANNBHWX-ANT)CONSEQUENTIALNOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 28.12.0017 FOR THE ASSESSMENT YEAR|2015-16 LE., ANNEX-C AND ETC.IN W.P.NO.12268/2018:BETWEEN:SMT SWATHI JAGADISH|W/O H.K.JARADISHAGED ABOUT 31 YBARS|R/AT SRI BASAVESHWARA NILAYA|NBW SANTHR MAIDANACHITRADURGA-577501. |_.. PETITIONER|IBY SRI HARISH.V.S., ADV.| AND:THE INCOME TAX OFFICKBRWARD - 1, TAMATKAL ROADMEBEDEHALLCHITRADURGA-577502. |_. RESPONDENT. |BY SRI E.I. SANMATHI, ADV. FOR SRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND|22/ OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 1483 (8)OF THE INCOME TAX ACT, 1961, DATED 28.12.2017 FOR THE|ASSESSMENTYRAR2015-16ANNEX-B|ANDCONSEQUENTIALNOTICEOF.DHRMANDISSUBDBY|RESPONDENT DATED 28.12.2017 FOR THE ASSESSMENT YEAR2015-16 I.E., ANNEX-C AND ETC. IN W.P.NO.12270/2018: BETWEEN: Mrs. SANJKHEVA SHETTY MALASANI LAKSHMIW/O Mr. V.RAGHAVENDRA.AGED ABOUT 43 YEARS| -6- R/AT C/O M/S. SHASHI HARDWAREM.H.ROAD, CHITRADURGA-577501. _.. PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICERWARD —- 1, TAMATKAL ROADMBDBHALLICHITRADURGA-57/7/502._. RESPONDENT. [BY SRI E.I. SANMATHI, ADV. FORSRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSITIUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 148 (3).OF THE INCOME TAX ACT, 1961, DATED 28.12.2017 FOR THEASSESSMENTYRAR2015-16ANNBHWX-ANT)CONSEQUENTIALNOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 28.12.0017 FOR THE ASSESSMENT YEAR|2O15-16 LE., ANNEX-C AND ETC. IN W.P.NO.12271/2018: BETWEEN: SMT MALASANI ANAND KUMAR ANUPAMA|W/O Mr. ANAND KUMAR.AGED ABOUT 39 YBARS|R/AT C/O M/s. SRI BASAVESHWARA RICE MILL& K.M., NH-13, G.R. HALLY|CHITRADURGA-D/7/001. ... PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICKBRWARD - 1, TAMATKAL ROADMEDEHALLI, CHITRADURGA-97/7502... RESPONDENT. IBY SRI E.I. SANMATHI, ADV. FORSRI K.V.ARAVIND, ADV.) -~Tf- THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSITIUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 148 (8).OF THE INCOME TAX ACT, 1961, DATED 28.12.2017 FOR THE|ASSESSMENTYRAR2015-16ANNBHWX-ANT)CONSEQUENTIALNOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 28.12.9017 FOR THR ASSKHSSMEBNT YBA2015-16 LE., ANNEX-C AND ETC. IN W.P.NO.12273/2018: BETWEEN: SMI MALASANI RAMANANDA AMRUITHALAKSHMLW/O LATE Mr. M.S.RAMANANDAAGED ABOUT 49 YBARS|R/AT C/O m/s. SRI GURUDEVA INDUSTRIESNH-13, 0 KM, G.R. HALLY|CHITRADURGA-577501. |_.. PETITIONER| IBY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICKBRWARD - 1, TAMATKAL ROADMEDEHALLI, CHITRADURGA-97/7502... RESPONDENT. |BY SRI E.I. SANMATHI, ADV. FOR SRI K.V.ARAVIND, ADV.) -~Tf- THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSITIUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 148 (8).OF THE INCOME TAX ACT, 1961, DATED 28.12.2017 FOR THE|ASSESSMENTYRAR2015-16ANNBHWX-ANT)CONSEQUENTIALNOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 28.12.9017 FOR THR ASSKHSSMEBNT YBA2015-16 LE., ANNEX-C AND ETC. IN W.P.NO.12273/2018: BETWEEN: SMI MALASANI RAMANANDA AMRUITHALAKSHMLW/O LATE Mr. M.S.RAMANANDAAGED ABOUT 49 YBARS|R/AT C/O m/s. SRI GURUDEVA INDUSTRIESNH-13, 0 KM, G.R. HALLY|CHITRADURGA-577501. |_.. PETITIONER| IBY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICKBRWARD - 1, TAMATKAL ROADMEDEHALLI, CHITRADURGA-97/7502... RESPONDENT. |BY SRI E.I. SANMATHI, ADV. FOR SRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/ OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 143 (3)OF THE INCOME TAX ACT, 1961, DATED 28.12.2017 FOR THEASSESSMENTYRAR2015-16ANNBHWX-ANT)CONSEQUENTIAL|NOTICEOF)DHRMANDISSUEDBY|RESPONDENT DATED 28.12.201/7 FOR THE ASSESSMENT YEAR2015-16 I.E., ANNEX-C AND ETC.| IN W.P.NO.12275/2018: BETWEEN: SMIMALASANI LINGA SEILTY JYOTHL| -8- W/O Mr. M.S. LINGA SETTY|AGED ABOUT 53 YBARS|R/AT C/O M/s. SRI BASAVESHWARA RICE MILL& K.M., NH-13, G.R. HALLY|CHITRADURGA-577501. |_.. PETITIONER| IBY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICKBRWARD —- 1, TAMATKAL ROADMEBEDEHALLCHITRADURGA-5/7/5902... RESPONDENT. |BY SRI E.I. SANMATHI, ADV. FORSRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND|22/ OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 1483 (8)OF THE INCOME TAX ACT, 1961, DATED 28.12.2017 FOR THEASSESSMENTYRAR2015-16ANNEX-B|ANDCONSEQUENTIALNOTICEOF.DEMANDISSUEDBY|RESPONDENT DATED 28.12.2017 FOR THE ASSESSMENT YEAR2015-16 I.E., ANNEX-C AND ETC. IN W.P.NO.13174/2018: BETWEEN: Mr. JIGNKBSH TARACHAND CHOWATIAS/O TARACHAND M CHOWATIAAGED ABOUT 40 YEARS|R/AT No.33, “SUHANI VILLA”MIDDLE SCHOOL ROAD, V.V. PURAMBANGALORE -560004._.. PETITIONER| |BY SRI HARISH.V.S., ADV.| AND: THE INCOME TAX OFFICERCIRCLE — 95 (2) (1)ROOM No.316, 3 KLOOR, -9Q- BMTC BUILDING, 80 FEET ROAD' BLOCK, KORAMANGALA|BANGALORE-560095. .. RESPONDENT. |BY SRI E.I. SANMATHI, ADV. FORSRI K.V.ARAVIND, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND|22/7 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER PASSED BY THE RESPONDENT U/S 1483 (8)OF THE INCOME TAX ACT, 1961, DATED 26.12.2017 FOR THE|ASSESSMENTYRAR2015-16ANNBHWX-ANT)CONSEQUENTIALNOTICEOF.DHRMANDISSUBDBY|RESPONDENT DATED 26.12.2017 FOR THE ASSESSMENT YEAR|2015-16 I.E., ANNEX-C AND ETC. THRESH PEITIIONS COMING ON FOR PRELIMINARYHEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE|KOLLOWING:- ORDER Since common issue is involved in these matters, they are clubbed, heard together and disposed of by thiscommon order. 2. Petitioners have challenged the assessment order/s passed by the respondent under Section 143(3) of the Income-tax Act, 1961 |‘Act’ for short} relating to theassessment|YCal2015-16andconsequentialnotice/s of demand issued by the respondent. 3. Challenge is made to the assessment order onthe ground of non-compliance with the principles ofnatural justice, inasmuch as the statement of a thirdparty Mr.Mukhesh Choksi relied on by the respondent-Appellate Authority, not being made available to thepetitioner and not providing an opportunity to cross-examine the said witness by the petitioners. ORDER Since common issue is involved in these matters, they are clubbed, heard together and disposed of by thiscommon order. 2. Petitioners have challenged the assessment order/s passed by the respondent under Section 143(3) of the Income-tax Act, 1961 |‘Act’ for short} relating to theassessment|YCal2015-16andconsequentialnotice/s of demand issued by the respondent. 3. Challenge is made to the assessment order onthe ground of non-compliance with the principles ofnatural justice, inasmuch as the statement of a thirdparty Mr.Mukhesh Choksi relied on by the respondent-Appellate Authority, not being made available to thepetitioner and not providing an opportunity to cross-examine the said witness by the petitioners. 4. Learned counsel appearing for the petitionersplaced reliance on the Division Bench judgment of thiscourt in W.A.No.218/015 in the case ofM/s KothariMetals —vs- Income Tax Officer|(DD 14.8.2015) as well|as W.A. No.219/2015 in the case ofM/s Vardhman|Metals -v- Income Tax Officer|DD 26.10.2016}. —However, learned counsel appearing for the respondentdistinguishing the Division Bench Judgments referredto by the learned counsel for petitioners, placed relianceon the Co-ordinate Bench decision of this Court in!W.P.No.30690/2016 [DD 28.8.2017]| and submitted that the department-revenue has no objections to dispose ofthese matters in terms of the order of this Court passedin W.P. No. 30960/2016. >. In view of the aforesaid submission, this courtfinds it appropriate to dispose of these matters in termsof order in W.P.No.30960/2016. Accordingly, these matters stand disposed of interms of the order passed in W.P.NO.30960/2016—without expressing any opinion on the merits ordemerits of the cases. Appellate Authority is at libertyto re-irame assessment in accordance with law, aftercomplying with the principles of natural justice, bysupplying a copy of the statement of Mr.MukheshChoksi and other brokers as well as the investigationreport, to the petitioners forthwith, further provide withan opportunity of cross-examining the said witnesses bythe petitioner or his authorized representatives. Accordingly, the impugned assessment orders andthe demand notices are quashed. Petitioners-assesseesor their authorized legal representative shall appearbefore the Appellate Authority on 31.95.2018 and theAppellate Authority shall complete the fresh assessmentrelating to the assessment year/s in question inaccordance with law in an expedite manner, in anyevent not later than six months from the date ot!appearance of the assessees or the legal representativebefore the Appellate Authority. In. Sd/-.JUDGE