Karnataka High Court
Sri S D Krishnamurthy (Huf) vs Deputy Commissioner Of Income Tax on 28 June, 2023
Bench: S.Sunil Dutt Yadav
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NC: 2023:KHC:22506
WP No. 10376 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 28TH DAY OF JUNE, 2023
BEFORE
THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 10376 OF 2023 (T-IT)
BETWEEN:
1. SRI S D KRISHNAMURTHY (HUF)
S/O LATE S D DHAKTAPPA
AGED 67 YEARS,
R/AT NO 26/A1,
1ST MAIN, 1ST CROSS,
VHBCS LAYOUT,
BEHIND SHANKARMUTT
BASAVESHWARANAGAR,
BANGALORE - 560 079
REP BY ITS KARTHA
SRI S D KRISHNAMURTHY
... PETITIONER
Digitally signed by B (BY SRI. ARAVIND V CHAVAN., ADVOCATE)
K
MAHENDRAKUMAR
Location: High
Court of Karnataka AND:
1. DEPUTY COMMISSIONER OF INCOME TAX,
CIRCLE 5(2)(1)
BMTC BUILDING,
80 FEET ROAD,
KORAMANGALA,
BANGALORE - 560 095
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WP No. 10376 of 2023
2. PRL. COMMISSIONER OF INCOME TAX - 5
BMTC BUILDING,
80 FEET ROAD,
KORAMANGALA,
BANGALORE - 560 095
3. DEPUTY COMMISSIONER OF INCOME TAX
CENTRAL CIRCLE 2(1)
C R BUILDING,
QUEENS ROAD,
BANGALORE - 560 001
4. PRINCIPAL COMMISSIONER OF INCOME TAX
CENTRAL CIRCLE
C R BUILDING,
QUEENS ROAD,
BANGALORE - 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 PENALTY ORDER DTD 26/09/2022 BEARING NO.
ITBA/PNL/F/270A/2022-23/1045986019(1) ANNEXURE-H2 FOR
THE ASSESSMENT YEAR 2017-18 PASSED BY THE R-3 AND
ETC.
THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
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WP No. 10376 of 2023
ORDER
Petitioner has challenged the Penalty Order at
Annexure-'H2' for the Assessment Year 2017-18 and has
also sought for setting aside of the Assessment Order at
Annexure-'C'.
2. It is the contention of Sri. Aravind V. Chavan,
learned counsel appearing for the petitioner that the
impugned order is passed including the Penalty Order
under Section 270A of the Income Tax Act, 1961 ('the
Act'), is without affording mandatory hearing in terms of
the legal requirements under Section 274(1) of the Act
and also insofar as the Assessment Order passed under
Section 143(3) read with Section 153C of the Act, the
opportunity of hearing as is provided for under Section
143(3) of the Act was not given. It is also contended that
the Authority had no jurisdiction to invoke Section 153C of
the Act.
3. It is pointed out that for the purpose of
initiating proceedings, there must be recovery of
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WP No. 10376 of 2023
incriminatory material without which recourse cannot be
had to Section 153C of the Act and that the only option
available under such circumstance would be to proceed for
reassessment under Sections 147 to 148 of the Act.
Reliance is placed on the judgment in the case of
Principal Commissioner of Income Tax vs. Abhisar
Buildwell Private Limited - 2023 SCC Online SC 481.
4. Admittedly, there has been violation of
principles of natural justice. Accordingly, case is made
out for remanding the matter for fresh consideration while
directing the Authority to embark upon reconsideration
including the contentions raised regarding Section 153C of
the Act with reference to the law laid down by the Apex
Court in the case of Abhisar Buildwell (supra).
5. The Penalty Order at Annexure-'H2' and the
Assessment Order at Annexure-'C' are set aside. The
Authority to reconsider the matter in light of the discussion
made above. The respondent is directed to fix a date for
hearing and afford an opportunity of personal hearing as
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WP No. 10376 of 2023
mandated under law as noticed above and pass orders
afresh.
6. Writ petition is allowed accordingly.
Sd/-
JUDGE
VGR
