Failure of CA to appear before AO Results in Ex-Parte Income Tax Assessment: Karnataka High Court quashes Order [Read Order]

In a recent ruling, the Karnataka High Court quashed income tax assessment order, ruling that the petitioner had entrusted the case to a Chartered Accountant, who was unable to appear before the Assessing Officer (AO). This absence led to an ex parte order being passed against the petitioner.

Mr. Mahesh R. Uppin, representing the petitioner, argued that the petitioner had entrusted the case to a Chartered Accountant, who was unable to appear before the Assessing Officer (AO). This absence led to an ex parte order being passed against the petitioner. It was requested that the impugned order be set aside and the matter remitted back to respondent No. 2 for fresh consideration.

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On the other hand, counsel for the respondents, M. Dilip, defended the impugned order, asserting that the petition lacked merit and should be dismissed.

After considering the arguments from both sides, Justice S.R. Krishna Kumar noted that the petitioner had been unable to contest the proceedings due to entrusting the matter to the Chartered Accountant, citing bonafide reasons and unavoidable circumstances. Without delving into the merits of either side's arguments, the judge adopted a justice-oriented approach. In the interest of providing the petitioner an opportunity to be heard, the court set aside the impugned Assessment Order dated March 24, 2023, and remitted the matter back to the AO with further directions.

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The court also recorded the petitioner's commitment to unconditionally withdraw the appeal and set aside both the Assessment Order and Demand Notice dated March 24, 2023.

To Read the full text of the Order CLICK HERE

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