Wp/5302/2023 Of M/S M.e. Electricals Pvt Ltd v. Chief Commissioner Of Income Tax

Digitallysigned byNANDINI DLocation:High Court ofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO.5302 OF 2023 (TIT) BETWEEN: M/S M.E. ELECTRICALS PVT. LTD. NO.68 AND 90 E 3 BLOCK, 1 STAGE, NAGARBHAVI, BENGALURU – 560 072 REP. BY SRI. GANGADHARA DIRECTOR OF THE M/S M.E ELECTRICALS PVT. LTD., S/O SOMAIAH, AGED 53 YEARS, R/O NO.68 AND 90E, 3 BLOCK, 1 STAGE, NAGARBHAVI, BENGALURU – 560 072. …PETITIONER (BY SRI. MALLAHAR RAO, ADVOCATE) AND: 1. CHIEF COMMISSIONER OF INCOME TAX QUEENS ROAD BENGALURU – 560 051. 2. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2) BENGALURU – 560 001. CENTRAL CIRCLE 1(2) BENGALURU – 560 001. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 31.01.2023 VIDE ORDER NO.ITBA/AST/M/144/2022-23/1049274674(1) PASSED BY R-2 VIDE ANNEXURE-C AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM:HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “(i) Issue writ of certiorari and to quash the assessment order passed dated 31.01.2023 vide No.ITBA/AST/M/144/2022-23/1049274674(1) passed by the respondent No.2 vide Annexure-C; (ii) Issue of writ of mandamus or writ of direction to the respondent authority no.2 to allow the petitioner to submit the revised Income tax Returns for the assessment year 2017-18 to the Income Tax Department; (iii) Issue writ of prohibition to the respondent authority no.2, directing to refrain from taking any further coercive steps or initiate any recovery proceedings against the petitioner pursuant to the assessment order date 31.01.2023 vide No.ITBA/AST/M/144/2022-23/1049274674(1) respondent no.2 vide Annexure-C. (iv) Pass any such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of this case, in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that the petitioner approached this Court earlier in W.P.No.10233/2020, which was allowed and disposed of by this Court vide final order dated 23.12.2021 as under: “In this petition, the petitioner seeks quashing of the impugned order at Annexure-B dated 27.12.2019 and for other reliefs. 2. Heard learned counsel for the petitioner and 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 documents produced by the petitioner, learned counsel for the petitioner invites my attention to the impugned assessment order in order to point out that the petitioner was not granted an opportunity of personal hearing in the matter before passing the impugned order, which is violative of principles of natural justice. It is also submitted that if the respondents had granted an opportunity of personal hearing to the petitioner, the petitioner would have produced additional documents and filed additional objections before the respondents in this regard. It is therefore, contended that the impugned assessment order at Annexure-B deserves to be quashed. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 5. Though several contentions have been urged by both sides in respect of their respective claim, having regard to the undisputed fact that no personal hearing was given/granted in favour of the petitioner prior to passing the impugned order, without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and proper to set aside the impugned order and remit the matter back to the respondent No.3 for re-consideration afresh in accordance with law by giving personal hearing to the petitioner and after providing one more opportunity to the petitioner to produce additional documents and to file additional objections if any, and thereafter to proceed and conclude the proceedings in accordance with law. 6. In the result, I pass the following order: a) Petition is hereby allowed. b) The impugned assessment order dated 27.12.2019 passed by respondent No.3 vide Annexure-B is hereby set aside. 27.12.2019 passed by respondent No.3 vide Annexure-B is hereby set aside. c) Matter is remitted back to concerned respondent for re-consideration afresh in accordance with law after giving personal hearing to the petitioner and providing opportunity to the petitioner to produce the additional documents and to file additional objections in support of its claim pursuant to which the respondent shall conclude the proceedings in accordance with law.” for re-consideration afresh in accordance with law after giving personal hearing to the petitioner and providing opportunity to the petitioner to produce the additional documents and to file additional objections in support of its claim pursuant to which the respondent shall conclude the proceedings in accordance with law.” 4. It is the grievance of the petitioner that subsequent to the aforesaid order passed by this Court, the petitioner appeared before respondent No.2 and sought for some more time for personal hearing, which was refused by respondent No.2, who once again proceeded to pass the impugned ex-parte assessment order, which is assailed in the present petition. 5. Per contra, learned counsel for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed. NC: 2025:KHC:13383 6. Though several contentions have been urged by both sides in respect of their respective claim, having regard to the undisputed fact that no personal hearing was given / granted in favour of the petitioner prior to passing the impugned order, without expressing any opinion on the merits / demerits of the rival contentions, I deem it just and proper to set aside the impugned order and remit the matter back to the respondent No.2 for re-consideration afresh in accordance with law by giving personal hearing to the petitioner and after providing one more opportunity to the petitioner to produce additional documents and to file additional objections if any, and thereafter to proceed and conclude the proceedings, in accordance with law. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned assessment order at Annexure – C dated 31.01.2023 passed by respondent No.2 is hereby set aside. respondent No.2 is hereby set aside. (iii) Matter is remitted back to concerned respondent No.2 for re-consideration afresh in accordance with law after giving personal hearing to the petitioner and providing opportunity to the petitioner to produce additional documents and to file additional objections in support of its claim pursuant to which the respondent shall conclude the proceedings in accordance with law. (iv) Petitioner is directed to appear before the respondent on 16.04.2025 without awaiting further notice from the respondent. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned assessment order at Annexure – C dated 31.01.2023 passed by respondent No.2 is hereby set aside. respondent No.2 is hereby set aside. (iii) Matter is remitted back to concerned respondent No.2 for re-consideration afresh in accordance with law after giving personal hearing to the petitioner and providing opportunity to the petitioner to produce additional documents and to file additional objections in support of its claim pursuant to which the respondent shall conclude the proceedings in accordance with law. (iv) Petitioner is directed to appear before the respondent on 16.04.2025 without awaiting further notice from the respondent. (v) It is made clear that if petitioner does not appear before respondent No.2 on 16.04.2025 and / or appear on the dates of hearing as and when indicated and contest the proceedings, respondent No.2 shall proceed further and pass appropriate orders, in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE