Vijay Kumar HUF Through Its Karta Vijay Kumar vs. State Of Bihar

The present writ application has been filed challenging the show cause notice dated 28.11.2024 issued by the adjudicating authority/respondent no. 3, for the tax period 2020-21 and further the order dated 19.02.2025 and also the summary order in Form GST DRC-07 for the aforesaid tax period.

Mr. D. V. Pathy, learned Senior Counsel for the petitioner, submits that the petitioner is a Hindu Undivided Family (HUF), and provides renting services of immovable 2/4 property. The show cause notice was issued by respondent no. 3 under Section 73 (1) of the GST Act for tax period of 2020-21 in Form GST DRC-01 along with notice on the solitary ground of information appearing in Form 26 AS. In response to the show cause notice, the petitioner filed a reply through GST portal giving particulars of rental income along with the certificate of deduction of income tax at source in Form 26 AS. The petitioner in his reply has categorically stated that he has only received income that is reflected in the certificate of income tax at source in Form 26 AS, having Permanent Account Number (PAN) card issued in the name of Vijay Kumar (HUF) bearing no. AAIHV6679J.

Learned senior counsel further submits that the petitioner in his show cause also raised a point that the payment under Section 194C in Form 26AS was not received by the Registered Tax Payer (RTP). The RTP has received payment only under Section 194(1)(b), i.e., on receipt of the rental income.

Learned senior counsel further submits that in the assessment order, other five PAN numbers have been considered and the amount deducted in Form 26 AS under Section 194C has been added as payment received by the RTP, whereas the 3/4 petitioner is not having any works contract business and is not registered for works contract. Five PAN numbers considered by the adjudicating authority in the order of assessment are absolutely not of the petitioner.

A supplementary counter affidavit has been filed by the respondent no. 2, stating therein that the petitioner filed his reply to the show cause and in Form DRC-06, petitioner has not demanded personal hearing and he also did not appear at the time of passing of assessment order, which shows the lack of due diligence on part of the petitioner. However, the petitioner also did not produce any documentary evidence in rebuttal of the allegation made in the show cause. The PAN card numbers as mentioned in the order of assessment bearing nos. ATTPK0255D, APXPK2311N, AUWPK7728F, AOXPK3762N, ALIPK0588Q, do not belong to the petitioner.

Considering the submissions made by the parties and the admission on part of the respondents that the PAN numbers other than the PAN number of petitioner Vijay Kumar (HUF) as mentioned in the order of assessment does not belong to the petitioner, accordingly, we are of the opinion that the matter needs a fresh consideration by the assessing authority after giving opportunity of hearing to the petitioner.

In the result, the order dated 19.02.2025 is set aside and the matter is remitted back to the respondent no. 3 to pass a fresh order after giving opportunity of personal hearing to the petitioner. The petitioner is directed to produce this order before the respondent no. 3 within a period of two weeks and at the time of production of the order, the respondent no. 3 shall fix a date of hearing and communicate the same by physical as well as other available modes and after hearing the petitioner, shall pass a fresh order in accordance with law within a period of two months.

With the aforesaid directions and observations, the present writ application is disposed.