Kabbathi Bochegowda Shivanna Vs CIT (Appeals) (Karnataka High Court)
The Karnataka High Court quashed an ex-parte Income Tax assessment order issued against Kabbathi Bochegowda Shivanna after his Chartered Accountant (CA) failed to appear before the Assessing Officer (AO) during proceedings. The petitioner argued that the assessment order, passed on March 24, 2023, was the result of his CA’s inability to present a defense, leading to an ex-parte decision. Shivanna requested the court to quash the assessment order and associated demand notice and sought a fresh opportunity to submit the required documents and contest the case. Additionally, the petitioner offered to withdraw a pending appeal and requested the court to direct the authorities to adjust any amounts already recovered under a previous notice.
In response, the court recognized the petitioner’s claim of not being able to contest the case due to unavoidable circumstances. Adopting a justice-oriented approach, the court set aside both the assessment order and the associated bank account attachment notice. It remitted the case back to the AO, granting the petitioner a chance to present his case again. The court also directed that any amount recovered from the petitioner be adjusted in the fresh proceedings. This judgment allows the petitioner to contest the assessment in accordance with the law, giving him a second chance to resolve the tax matter.
