Allowed

Shri Shivlingeshwar Cooperative Credit Society v. the Income Tax Officer Ward 1 and Tps Bagalkot

Karnataka HC13 Sept 2024WP/106292/2023

Case brief

AI extract

What is this about?

The High Court of Karnataka, Dharwad Bench quashed an ex-parte assessment order dated 21.03.2022 passed under Section 147 of the Income Tax Act, 1961, due to the assessee being assessed under an old PAN number. The Court remanded the matter to the First Respondent to reinstate the petitioner's right to respond to the notice and pass a fresh order, directing the petitioner to appear for reply on a

What did the court decide?

The assessment order is set aside; the matter is remanded to the First Respondent to the stage of reply to the 148 notice and to pass a fresh order; the petitioner is directed to appear on 21.10.2024.

Shri Shivlingeshwar Cooperative Credit… — Civil Procedure and Limitation | Karnataka HC (2024)

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NC: 2024:KHC-D:13128 WP No. 106292 of 2023

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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

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DATED THIS THE 13^TH DAY OF SEPTEMBER, 2024

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BEFORE

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THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 106292 OF 2023 (T-IT)

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BETWEEN:

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SHRI. SHIVLINGESHWAR CO-OPERATIVE CREDIT SOCIETY, AT/POST: SAIDAPUR, TAL: MUDHOL, DIST: BAGALKOT-587 316, REPRESENTED BY ITS SECRETARY, SHRI. RAMESH BASAPPA MOPAGAR, AGE: 59 YEARS, OCC: SECRETARY, R/O: BISANAL, RABAKAVI BANAHATTI, DIST: BAGALKOT.

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…PETITIONER

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(BY SRI. SANGRAM.S.KULKARNI., ADVOCATE)

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AND:

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Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA

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THE INCOME TAX OFFICER, WARD 1 AND TPS BAGALKOT, AIKAR BHAVAN SECTOR 24, NAVANAGAR, DIST: BAGALKOT-587 102.

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THE PRINCIPAL COMMISSIONER OF INCOME TAX, C.R. BUILDING, NAVANAGAR, HUBBALLI-580 025.

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…RESPONDENTS

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(BY SRI. M.THIRUMALESH., ADVOCATE FOR R1-R2)

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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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2 - NC: 2024:KHC-D:13128 WP No. 106292 of 2023

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ORAL ORDER

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Sri.Sangram S.Kulkarni., counsel for the petitioner and Sri.M.Thirumalesh., counsel for the respondents have appeared in person.

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The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the assessment order dated 21.03.2022 passed under Section 147 R/w Section 144 R/w Section 144B of the Income Tax Act, 1961 in DIN No:ITBA/AST/S/147/202122/1041190113(1) for the Assessment Year 2015-16 vide Annexure-H.

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Heard the arguments and perused the Writ papers

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with care.

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The petitioner is a Cooperative Society registered under the Karnataka Cooperative Societies Act, 1959 and is engaged in the business of providing credit facilities to its members. The petitioner after its registration applied for issuance of PAN card and was assigned the status of Firm instead of AOP and PAN bearing No.AAYFS3296G was issued. However, in the year 2017, a new PAN number was assigned

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3 - NC: 2024:KHC-D:13128 WP No. 106292 of 2023

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bearing No.AARAS3928B. The first respondent issued notice under Section 148 of the Income Tax Act, 1961 relating to Assessment Year 2015-16 on the pretext that the petitioner has not filed its returns of income for the said Assessment Year by referring to the old PAN number. Since the petitioner did not have the password, requested the first respondent to reset the password. Despite requests, the issue was not resolved to reset the password. However, an ex-parte assessment order was passed on 21.03.2022. This is untenable. The respondents have failed to consider that the petitioner has been assigned with new PAN number and therefore, it could not reply to the notice sent to it by referring to the old PAN number. 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 is liable to be set aside, so it is set aside.

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The Writ of Certiorari is ordered. The assessment order dated 21.03.2022 passed under Section 147 R/w Section 144 R/w Section 144B of the Income Tax Act, 1961 in DIN No:ITBA/AST/S/147/2021-22/1041190113(1) for the Assessment Year 2015-16 vide Annexure-H is quashed.

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NC: 2024:KHC-D:13128 WP No. 106292 of 2023

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The matter is remanded to the first respondent to the stage of reply to 148 notice and to pass fresh order. All contentions of the parties are kept open.

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This Court has not expressed any opinion on the merits of the case.

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Since the petitioner is represented by its counsel, petitioner is directed to appear before the first respondent on 21.10.2024 without awaiting further notice.

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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/MRP LIST NO.: 1 SL NO.: 29

Shri Shivlingeshwar Cooperative Credit Society v. the Income Tax Officer Ward 1 and Tps Bagalkot

Case brief

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Shri Shivlingeshwar Cooperative Credit Society v. the Income Tax Officer Ward 1 and Tps Bagalkot

Case brief

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