Allowed

Shri Shanmukha Shivappa Yandigeri v. Central Board of Direct Taxes

Karnataka HC12 Sept 2024WP/105558/2022

Case brief

AI extract

What is this about?

The High Court of Karnataka held that an ex-parte assessment order and penalty order were passed because the notice did not reach the assessee due to an incorrect address. The writ petition was allowed, the orders were quashed, and the matter was remanded to the assessing authority to conduct proceedings from the notice stage.

What did the court decide?

Writ of Certiorari granted; assessment and penalty orders quashed; matter remanded for proceedings from the stage of reply to notice under Section 142.

Shri Shanmukha Shivappa Yandigeri Vs Central Board of Direct… — Income Tax | Karnataka HC (2024)

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NC: 2024:KHC-D:13073 WP No. 105558 of 2022

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IN THE HIGH COURT OF KARNATAKA,

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DHARWAD BENCH

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DATED THIS THE 12^TH DAY OF SEPTEMBER, 2024

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BEFORE

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THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 105558 OF 2022 (T-IT)

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BETWEEN:

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SHRI. SHANMUKHA SHIVAPPA YANDIGERI, HIREGULABAL, BAGALKOT-587 207, KARNATAKA, AGED ABOUT 56 YEARS.

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…PETITIONER (BY SRI. ASHOK.A.KULKARNI AND SRI. H.R.KAMBIYAVAR., ADVOCATES)

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AND:

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Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA

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CENTRAL BOARD OF DIRECT TAXES, CENTRAL SECRETARIAT, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTRE.

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(BY SRI. M.THIRUMALESH AND SRI. Y.V.RAVIRAJ., ADVOCATES)

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…RESPONDENT

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.

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THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER:

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NC: 2024:KHC-D:13073 WP No. 105558 of 2022

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ORAL ORDER

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Sri. Ashok A. Kulkarni., counsel for the petitioner has appeared through video conferencing.

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Sri. M. Thirumalesh., counsel for the respondent has appeared in person.

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The Assessment order dated 23.04.2021 passed by the respondent under Section 143(3) R/w Section 144B of the Income Tax Act, 1961 in DIN: ITBA/AST/S/143(3)/202122/1032650185(1) for the Assessment Year 2018-19 vide Annexure-A and the penalty order dated 14.12.2021 passed under Section 270A of the Income Tax Act, 1961 in DIN: ITBA/PNL/F/270A/2021-22/1037772393(1) for the Assessment Year 2018-19 vide Annexure-B are called into question in this Writ Petition on several grounds as set-out in the Memorandum of Writ Petition.

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Counsel appearing for the respective parties urged several contentions.

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Counsel Sri.Ashok A.Kulkarni., in presenting his arguments strenuously urged that the assessment order is an ex parte order. He argued by saying that due to the non-receipt

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3 - NC: 2024:KHC-D:13073 WP No. 105558 of 2022

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of the notice, the assessee could not take part in the proceedings. Hence, he submits that an opportunity may be given to the petitioner to take part in the proceedings by passing a suitable order.

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By way of reply, counsel Sri.M.Thirumalesh., submits that a suitable order may be passed.

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Heard the arguments and perused the Writ papers

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with care.

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As is clear from Paragraph No.7.1 of the assessment order, the notice has not reached the hands of the assessee. Since the addressee was not found because of the incorrect address, the assessee did not receive the notice. Hence, an ex-parte order was made. Because of the ex parte order, this Court considers it proper to allow the assessee to contest the matter by taking part in the proceedings. Hence, the matter requires a remand. Therefore, the assessment order and the penalty order are liable to be set aside, so they are set aside.

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The Writ of Certiorari is ordered. The Assessment order dated 23.04.2021 passed by the respondent under

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4 - NC: 2024:KHC-D:13073 WP No. 105558 of 2022

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Section 143(3) R/w Section of the Income Tax Act, 1961 in DIN: ITBA/AST/S/143(3)/2021-22/1032650185(1) for the Assessment Year 2018-19 vide Annexure-A and the penalty order dated 14.12.2021 passed under Section 270A of the Income Tax Act, 1961 in DIN: ITBA/PNL/F/270A/202122/1037772393(1) for the Assessment Year 2018-19 vide Annexure-B are quashed.

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The matter is remanded to the Faceless Assessing Authority. The proceedings shall begin from the stage of reply to the notice under Section 142 of the Act. The petitioner shall not urge the contention on limitation.

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This Court has not expressed any opinion on the merits of the case. All the contentions of the parties are kept open.

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Resultantly, the Writ Petition is allowed and remanded .

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Sd/(JYOTI MULIMANI) JUDGE

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TKN LIST NO.: 1 SL NO.: 34

Shri Shanmukha Shivappa Yandigeri v. Central Board of Direct Taxes

Case brief

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What did the court decide?

Shri Shanmukha Shivappa Yandigeri v. Central Board of Direct Taxes

Case brief

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