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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 13^TH DAY OF DECEMBER, 2021

BEFORE

THE HON9BLE MRS. JUSTICE S.SUJATHA

AND

THE HON9BLE MR. JUSTICE S.VISHWAJITH SHETTY

WRIT PETITION No.21638/2021 (T-IT)

BETWEEN:

MMG CONSTRUCTIONS LLP

617, FIRST FLOOR,

NEW KANTHARAJA, URS ROAD,

CHAMARAJA MOHALLA,

KUVEMPUNAGAR,

MYSURU 560 023.

THROUGH ITS MANAGING PARTNER

MR. JAYARAMU

S/O RAMEGOWDA,

AGED ABOUT 41 YEARS,

OCCUPATION: SERVICE,

R/AT -09, MMG PRADISE,

SY. NO.117/1A1, OLD 117/1,

SRIRAMPURA MYSORE-570 008.

& PETITIONER

(BY SRI.I.P.BANSAL, ADV. FOR SRI. B.S.BALACHANDRAN,

ADV.)

AND:

1.

UNION OF INDIA

THROUGH THE SECRETARY,

MINISTRY OF FINANCE,

NORTH BLOCK,

NEW DELHI 110 001.

2.

CENTRAL BOARD OF DIRECT TAXES,

SECRETARIAT BUILDING,

DEPARTMENT OF REVENUE,

NORTH BLOCK,

NEW DELHI-110 001.

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REP. BY ITS - CHAIRPERSON.

3.

THE ASSISTANT COMMISSIONER OF INCOME TAX,

CIRCLE 1(1) AND TPS,

ROOM NO.113, 1ST FLOOR,

REAC, MYSORE REAC,

MYSURU 570 008,

KARNATAKA.

4.

ADDITIONAL/JOINT/DEPUTY/ASSISTANT

COMMISSIONER OF INCOME TAX/ INCOME-TAX

OFFICER,

NATIONAL FACELESS ASSESSMENT CENTRE,

ROOM NO.401, 2ND FLOOR,

E -RAMP, JAWAHARLAL NEHRU STADIUM,

DELHI 110 003.

5.

COMMISSIOENR OF INCOME TAX

(NAFAC)-1, NEW DELHI,

NATIONAL FACELESS ASSESSMENT CENTRE,

ROOM NO.401, 2ND FLOOR, E-RAMP,

JAWAHARALAL NEHRU STADIUM,

DELHI 110 003.

& RESPONDENTS

(BY SRI H.SHANTHI BHUSHAN, ASG FOR R1;

SRI K.V.ARAVIND, ADV. FOR R2 TO 5)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226

AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO

DECLARE THAT PROVISIONS OF SUB-SECTION (8) OF

SECTION 144B OF THE IT ACT ARE UNCONSTITUTIONAL.

QUASH THE LETTER DATED 29.09.2021 ISSUED BY THE R3 IN

DIN

AND

LETTER

NO.

ITBA/AST/

/F/17/2021-

22/1036001532(1)(ANNEXURE-E) TO ASSUME JURISDICTION

ON THE CASE OF THE PETITIONER FOR THE AY 2018-19

RELYING ON THE LETTER DATED 28.09.2021 ISSUED BY THE

R5 AS IT CIRCUMVENTS THE PROVISIONS OF SECTION

144B(1) AND SECTION 127 OF THE IT ACT.

THIS

PETITION

COMING

ON

FOR

HEARING

ON

INTERLOCUTARY APPLICATION, S. SUJATHA J., MADE THE

FOLLOWING:

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O R D E R

This writ petition is directed against the

assessment

order

dated

29.09.2021

passed

by

respondent No.3 for the assessment year 2018-19

along with the impugned demand notices issued under

Section 156, Section 274 read with Section 270A and

Section 274 read with Section 271AAC(1) of the

Income Tax Act, 1961 ("the Act", for short) inter alia

challenging the letter dated 29.09.2021 issued by

respondent No.3 (Annexure-E) to assume jurisdiction

in the case of the petitioner for the assessment year

2018-19 relying on the letter dated 28.09.2021 issued

by the respondent No.5, further seeking for a

declaration that sub-section (8) of Section 144B of the

Act is unconstitutional.

2. Learned counsel Sri.I.P.Bansal representing the

petitioner-assessee submits that the challenge made to

the provisions of sub-Section (8) of Section 144B of the

Act is not pressed. The said submission is placed on

record. As such, now the relief is restricted only to the

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challenge made to the assessment order passed by

respondent No.3 and the notices issued thereof.

3. The petitioner claims to be a limited liability

partnership [LLP] firm and is a Builder, Developer and

Contractor. It transpires that for the assessment year

under consideration i.e., 2018-19, it has filed its

return of income under Section 139(4) of the Act,

which was processed under Section 143(1) of the Act.

Vide notice dated 22.09.2019 issued by the Assistant

Commissioner of Income-Tax (e-Verification) under

Section 143(2) of the Act, the petitioner was informed

that its case has been selected for scrutiny on the

issues relating to "income from real estate business"

and "investment in immovable property" and the

petitioner was instructed to further conduct the

proceedings through e-portal. Thereafter by letter

dated 15.10.2020