Karnataka High Court
Naveen Kottgere Shivaprakash vs The Principal Commissioner Of Income ... on 24 July, 2024
Author: S Sunil Dutt Yadav
Bench: S Sunil Dutt Yadav
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NC: 2024:KHC:29146
WP No. 12490 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 24TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 12490 OF 2024 (T-IT)
BETWEEN:
NAVEEN KOTTGERE SHIVAPRAKASH,
AGED ABOUT 49 YEARS,
NO. 337/1A, 18TH CROSS, UPPER PALACE,
ORCHARDS, SADASHIVANAGAR,
BANGALORE - 560 080.
...PETITIONER
(BY SRI. MALLAHAR RAO, ADVOCATE)
AND:
1. THE PRINCIPAL COMMISSIONER
OF INCOME TAX, BENGALURU - 4,
5TH FLOOR, BMTC BUILDING,
80 FEET ROAD, 6TH BLOCK,
KORAMANGALA, BENGALURU - 560 095.
Digitally
signed by
YAMUNA K L 2. THE ASSISTANT COMMISSIONER OF INCOME TAX,
Location: CIRCLE 6(3)(1), ROOM NO. 438,
High Court of 4TH FLOOR, BMTC BUILDING,
Karnataka
6TH BLOCK - 560 095.
3. THE NATIONAL FACELESS,
ASSESSMENT UNIT,
INCOME TAX DEPARTMENT
ROOM NO. 245A, NORTH BLOCK,
NEW DELHI - 110 001.
...RESPONDENTS
(BY SRI. M. DILIP, JR. STANDING COUNSEL)
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NC: 2024:KHC:29146
WP No. 12490 of 2024
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE EX-
PARTE ORDER UNDER SECTION 144 R.W.S 254 R.W.S 144B OF
THE INCOME TAX ACT DATED 19.03.2024 VIDE DIN NO.
ITBA/AST/S/144/2023-24/1062940328(1) FOR THE
ASSESSMENT YEAR 2015-16 AT ANNEXURE-G AND ANNEXURE-
H PASSED BY R3 AND ETC.,
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV
ORAL ORDER
(PER: HON'BLE MR JUSTICE S SUNIL DUTT YADAV)
The petitioner has sought for setting aside of the ex-
parte order of the assessment passed under Section 144
read with Section 254 read with Section 144B of the
Income Tax Act, 1961 (for short 'the Act') for the
assessment year 2015-16.
2. It is the case of the petitioner that the authority
during the course of the assessment proceedings on
29.02.2024 had issued a final show cause notice and date
of compliance was 05.03.2024 and due to certain bonafide
reasons, a request was made for adjournment at
Annexure-'F' on 05.03.2024 which was the last date of
NC: 2024:KHC:29146
compliance made out in the show cause notice of
29.02.2024.
3. It is submitted that in the assessment order,
the Assessing authority has not referred to the request of
adjournment and matter was proceeded with and variation
was made and assessment was concluded on the basis of
the best judgment assessment. It is submitted that the
cash deposit of Rs.59,06,448/- has been construed to be
an unexplained cash credit under Section 68 of the Act.
4. Learned counsel for the petitioner submits that
if the matter is remanded, he would be in a position to
explain the source of such deposit.
5. Learned counsel Sri. M. Dilip appearing for the
respondents vehemently opposes the remand back of the
matter and submits that it is the second round of litigation
and earlier opportunities afforded have not been availed of
and accordingly, there is no ground made out to extend
any indulgence to the petitioner.
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6. Heard both sides.
7. It is not in dispute as is made out from the
details of opportunities given at paragraph No.2 of the
assessment order at Annexure-'G' that the final show
cause notice was made on 29.02.2024 fixing the date of
compliance as 05.03.2024. It is a matter of record that the
petitioner has sought for an adjournment as is evidenced
at Annexure-'F' which request was made on 05.03.2024
which was the last date fixed for compliance as regards
the show cause notice of 29.02.2024.
8. A perusal of the assessment order does not
reveal that this request for adjournment has been
considered expressly, though the assessing officer has
referred in the order that the assessee has slept over his
rights. It must be noticed that variation has been proposed
and made on the premises that the petitioner is unable to
explain the source of cash deposit.
9. In light of the facts made out and also noticing
the request for adjournment that was made, it would be
NC: 2024:KHC:29146
appropriate to extend one last opportunity to the
petitioner to make out his case before the authority.
Accordingly, the order at Annexures-'G' and 'H' are set
aside. Matter is remitted back to the stage post show
cause notice dated 29.02.2024.
10. The petitioner to make out his reply
expeditiously. However, taking note that this is a second
round of litigation and there has been some lapse on part
of the petitioner in not adhering to the time line of
compliance, petitioner is to pay the cost of Rs.10,000/- to
respondent No.2 and such cost is not to be construed as
the amount paid towards any claim of the revenue.
11. Accordingly, petition is disposed off. All
contentions are kept open.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
MCR
