Writ Petition No. 728 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:10438 WP No. 728 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.728 OF 2025 (T-IT) Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA BETWEEN: RURALSHORES BUSINESS SERVICES PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT 135/2 MARUTHI INDUSTRIAL ESTATE ITPL ROAD, HOODI, WHITEFIELD BANGALORE - 560 048 REPRESENTED HEREIN BY ITS DIRECTOR MR. GOVINDAN SRINIVASAN. (BY SRI. SANDEEP HUILGOL, ADV.,) AND: 1. THE CENTRALIZED PROCESSING CENTRE BENGALURU REPRESENTED HEREIN BY ITS DIRECTOR GENERAL OF INCOME-TAX (SYSTEMS) INCOME TAX DEPARTMENT BENGALURU 560 500. 2. THE ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTRE INCOME-TAX DEPARTMENT 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003. …PETITIONER - 2 - NC: 2025:KHC:10438 WP No. 728 of 2025 3. THE ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE 3(1)((1), BENGALURU BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, KORAMANGALA BENGALURU - 560 095. 4. THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE 3(1)((1), BENGALURU ROOM NO. 227, 2ND FLOOR BMTC DEPOT, 6TH FLOOR BENGALURU - 560 095. 5. THE ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE 5(1)((1), BENGALURU BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, KORAMANGALA BENGALURU - 560 095. 6. THE DEPUTY DIRECTOR OF INCOME-TAX CENTRALIZED PROCESSING CENTRE BENGALURU, BENGALURU - 560 500. …RESPONDENTS
Legal Reasoning
(BY SRI. ARAVIND V. CHAVAN, ADV., FOR R1, R2 & R6 SRI. M. THIRUMALESH AND SRI. M. DILIP, ADVS., FOR R3 TO R3) INTIMATION DATED THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT (I) QUASH THE 01.01.2025 BEARING IMPUGNED CPC/2425/G23/520811222 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 245 OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2024-25 (ANNEXURE A). (II) DIRECT THE 1 RESPONDENT TO FORTHWITH GRANT REFUND OF RS. 2,07,36,040/- BEING THE AMOUNT ILLEGALLY ADJUSTED VIDE THE IMPUGNED INTIMATION DATED 01.01.2025 BEARING CPC/2425/G23/520811222 ISSUED UNDER SECTION 245 OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2024-25 (ANNEXURE A), TO THE PETITIONER ALONG WITH APPLICABLE INTEREST THEREON. - 3 - NC: 2025:KHC:10438 WP No. 728 of 2025 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks for following reliefs: “i) Quashing the impugned intimation dated 01.01.2025 CPC/2425/G23/5520811222 issued by bearing the 1st respondent under Section 245 of the Income-tax Act, 1961 for the assessment year 2024-25 (Annexure-A); ii) Directing the 1st respondent to forthwith grant refund of Rs.2,07,36,040/- being the amount illegally adjusted vide the impugned intimation dated 01.01.2025 bearing CPC/2425/G23/520811222 issued under Section 245 of the Income-tax Act, 1961 for the assessment year 2024-25 (Annexure-A), to the petitioner along with applicable interest thereon; iii) Pass such other or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” - 4 - NC: 2025:KHC:10438 WP No. 728 of 2025 2. Heard the learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that the dispute between the parties in the present petition relates to assessment year 2024-25. Under identical circumstances in respect of the very same petitioner/assessee, this Court in relation to assessment year 2023-24 in W.P.No.19142/2024 dated 06.08.2024 in the case of RURAL SHORES BUSINESS SERVICES PVT. LTD., VS. THE DEPUTY DIRECTOR OF INCOME-TAX AND OTHERS, has held as under: “ORAL ORDER In this petitioner, petitioner seeks the following reliefs: “(i) Quashing the impugned intimation dated 20.06.2024 bearing CPC/2324/G23/413795584 issued by the 1st respondent under Section 245 of the Income-tax Act, 1961 for the Assessment year 2023-24 (Annexure ‘A’); - 5 - NC: 2025:KHC:10438 WP No. 728 of 2025 (ii) Directing the 1st respondent to forthwith grant refund of Rs.4,16,88,490/- being the amount illegally adjusted vide the impugned intimation dated 20.06.2024 bearing CPC/2324/G23/413795584 issued under Section 245 of the Income-tax Act, 1961 for the Assessment year 2023-24 (Annexure ‘A’) to the petitioner along with applicable interest thereon; (iii) Pass such other or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned intimation at Annexure – A dated 20.06.2024 issued by respondent No.1 in order to point out that the proposed adjustment made therein is illegal, arbitrary and without jurisdiction or authority of law in as much as reference to the amount payable adjusted in relation to the Assessment year 2014- 15 was impermissible since there was an interim - 6 - NC: 2025:KHC:10438 WP No. 728 of 2025 order of stay in W.P.No.12286/2023 by this Court. It is therefore submitted that in the light of the fact that the aforesaid amount said to be payable by the petitioner to the respondent in relation to the Assessment year 2014-15 which had been stayed by this Court in W.P.No.12286/2023, the said amount in relation to the aforesaid Assessment Year could not have been adjusted towards the amount to be refunded in favour of the petitioner by issuing the impugned endorsement, which deserves to be quashed. 4. Per contra, learned counsel for the respondents fairly submits that the aforesaid amount demanded by the respondents from the petitioner is in relation to the Assessment Year 2014-15, which in fact had been stayed by this Court in W.P.No.12286/2023 dated 22.06.2023 as on the date of the impugned intimation dated 20.06.2024. 5. In view of the aforesaid facts and circumstances and undisputed fact that as on the date of the impugned intimation purporting adjustment of the refund amount payable in favour of the petitioner with reference to the demand made to the petitioner in relation to the Assessment Year 2014-15 which had been stayed by this Court in W.P.No.12286/2023 dated 22.06.2023, I deem it - 7 - NC: 2025:KHC:10438 WP No. 728 of 2025 just and appropriate to quash the impugned intimation and direct the concerned respondent to refund the sum of Rs.4,16,88,490/-, which was illegally adjusted vide impugned intimation at Annexure – A within a stipulated time frame. 6.
Decision
In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned intimation at Annexure–A dated 20.06.2024 issued by respondent No.1 under Section 245 of the IT Act for the Assessment Year 2023-24, is hereby quashed. (iii) Respondent No.1 is directed to refund a sum of Rs.4,16,88,490/- together with applicable interest as expeditiously as possible and at any rate within a period of six weeks from the date of receipt of a copy of this order.” 4. As stated supra, the petitioner in the aforesaid petition was the very same petitioner/assessee in the present petition also and while the said petition was relating to assessment year 2023-24, the present petition is in respect of 2024-25 and in the light of the said order passed by this Court in W.P.No.19142/2024 dated - 8 - NC: 2025:KHC:10438 WP No. 728 of 2025 06.08.2024 in respect of the very same petitioner/assessee, I deem it just and appropriate to apply/invoke the doctrine of parity and allow and dispose of the present petition in terms of the said order. Hence, the following: ORDER a) Writ petition is disposed of in terms of the order dated 06.08.2024 in W.P.No.19142/2024. b) Impugned intimation at Annexure-A dated 01.01.2025 issued by first respondent under Section 245 of the Income Tax Act, 1961 is hereby quashed. c) The concerned respondents are directed to refund a sum of Rs.2,07,36,040/- together with applicable interest as expeditiously as possible, within a period of two months from the date of receipt of a copy of this order. - 9 - NC: 2025:KHC:10438 WP No. 728 of 2025 d) The concerned respondents are directed to make necessary entries in all their records including ITBA portal as regards interim order of stay passed in W.P.No.12286/2023 till disposal of the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE NC List No.: 1 Sl No.: 10