P and M Associates LLP v. The Assistant Commissioner of Income-tax Circle-3(2)(1), Bengaluru/ The Assistant Commissioner of Income-tax Circle 7(2)(1), Bengaluru/ The Commissioner of Income-tax, Bengaluru / The CIT-7, Bengaluru
[Citation -2020-LL-0310-13]

Citation 2020-LL-0310-13
Appellant Name P and M Associates LLP
Respondent Name The Assistant Commissioner of Income-tax Circle-3(2)(1), Bengaluru/ The Assistant Commissioner of Income-tax Circle 7(2)(1), Bengaluru/ The Commissioner of Income-tax, Bengaluru / The CIT-7, Bengaluru
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 10/03/2020
Assessment Year 2017-18
Judgment View Judgment
Keyword Tags address for communication • ex-parte assessment order • deemed notice
Bot Summary: Respondents This Writ Petition is filed under Articles 226 and 227 of the Constitution of India, praying to quash the order dated 06.12.2019 passed by the 1st respondent bearing No.ITBA/AST/S/144/2019-20/1021774734(1) produced as Annexure-M and remand the mater back for fresh adjudication by giving the petitioner an opportunity to substantiate the claim in the return of income. This Writ Petition coming on for preliminary hearing this day, the Court, made the following: ORDER Petitioner is stated to be a partnership firm carrying on the business of transportation and trading in mill scale. Petitioner has registered the e-mail address for the purpose of communication. It is submitted that after scrutiny assessment under Section 143(3) of the Income Tax Act, notice as well as show cause notice were all issued to the address as registered in the portal account and consequent to which the notices sent to the wrong address remained unserved and in the absence of petitioner, ex-parte assessment order was passed and the ex-parte assessment order was also communicated to the wrong e-mail ID. 4. The petitioner has challenged the assessment order on the ground that the assessment order needs to be set aside as there is no deemed notice in terms of the requirement under Rule 127(2) and that he had no notice and hence, no opportunity has been 5 afforded to reply to the show cause notice or participate in the assessment proceedings. The facts referred to above would indicate that the petitioner has not been granted a fair opportunity to participate in the proceedings. The petitioner to keep himself present before the Assessing Officer on 27.03.2020.


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 10TH DAY OF MARCH, 2020 BEFORE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No. 4714/2020 (T-IT) Between: P and M Associates LLP No.78/6, Ground Floor, Sankarappa Garden, 8th Cross, Magadi Road, Bangalore 560 023. Rep. by its Partner Sri. Mukesh Chhajed Petitioner (By Sri. M. V. Seshachala, Sr. Counsel for Sri. Aravind V. Chavan, Adv.) And: 1. Assistant Commissioner of Income Tax Circle-3(2)(1), BMTC Building, 80 feet Road, Koramangala, Bengaluru 560 095. 2. Assistant Commissioner of Income Tax Circle 7(2)(1), BMTC Building, 80 feet Road, Koramangala, Bengaluru 560 095. 2 3. Commissioner of Income Tax BMTC Building, 80 feet Road, Koramangala, Bengaluru 560 095. 4. Commissioner of Income Tax-7 BMTC Building, 80 feet Road, Koramangala, Bengaluru 560 095. Respondents (Sri. E. I. Sanmathi, Adv.) This Writ Petition is filed under Articles 226 and 227 of Constitution of India, praying to quash order dated 06.12.2019 passed by 1st respondent bearing No.ITBA/AST/S/144/2019-20/1021774734(1) produced as Annexure-M and remand mater back for fresh adjudication by giving petitioner opportunity to substantiate claim in return of income. This Writ Petition coming on for preliminary hearing this day, Court, made following: ORDER Petitioner is stated to be partnership firm carrying on business of transportation and trading in mill scale (scrap of TMT Bars). Petitioner has registered e-mail address for purpose of communication. 3 2. e-mail ID of Chartered Accountant is bagrecha.singhvi@hotmail.com and e-mail ID of petitioner is pmassociatesblr@gmail.com . It is pointed out that department has been communicating through correct e-mail address as evidenced from communication dated 01.01.2016, 29.10.2016, 26.10.2018 and 08.05.2019. It is further submitted that in terms of Rule 127(2) of Income Tax Rules, address for communication would also be address as found in returns of income. Petitioner submits that address that is shown in returns of income for assessment year 2017-18 is bagrecha.singhvi@hotmail.com . petitioner further submits that portal account of petitioner has been opened by department in wrong e-mail ID, mahaveertransportbly2@gmail.com . Petitioner submits that income tax returns has been processed and refund generated has been again communicated to wrong e-mail address and e-mail sent has not 4 reached recipient as per result invalid address . Petitioner submits that rectification of refund, however, has been communicated to correct address. 3. It is submitted that after scrutiny assessment under Section 143(3) of Income Tax Act, notice as well as show cause notice were all issued to address as registered in portal account and consequent to which notices sent to wrong address remained unserved and in absence of petitioner, ex-parte assessment order was passed and ex-parte assessment order was also communicated to wrong e-mail ID. 4. Hence, petitioner has challenged assessment order on ground that assessment order needs to be set aside as there is no deemed notice in terms of requirement under Rule 127(2) and that he had no notice and hence, no opportunity has been 5 afforded to reply to show cause notice or participate in assessment proceedings. 5. facts referred to above would indicate that petitioner has not been granted fair opportunity to participate in proceedings. In light of said admitted facts, which have not been controverted, assessment order for year 2017-18 is set aside and matter is remitted to Assessing Officer for reconsideration. All contentions of petitioner are kept open. petitioner to keep himself present before Assessing Officer on 27.03.2020. Accordingly, petition is disposed off. Sd/- JUDGE VP P and M Associates LLP v. Assistant Commissioner of Income-tax Circle-3(2)(1), Bengaluru/ Assistant Commissioner of Income-tax Circle 7(2)(1), Bengaluru/ Commissioner of Income-tax, Bengaluru / CIT-7, Bengaluru
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