ALEPH DEVELOPERS AND CONSULTANTS LLP V. DEPUTY COMMISSIONER

WP/3814/2025

AI Insights

The case involves Aleph Developers and Consultants LLP, which filed a writ petition against the Deputy Commissioner of Income Tax and other respondents, challenging a show cause notice and subsequent orders related to the assessment year 2017-2018. The petitioner argued that the notice issued under Section 148A(b) of the Income Tax Act, 1961, did not provide a reasonable opportunity to respond before the orders were passed. The respondents contended that the petitioner failed to produce necessary documents or file objections within the specified time. The court found that the petitioner was not given a fair opportunity to contest the notice and thus allowed the writ petition, quashing the impugned orders and granting time to file objections.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 742556 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-02-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Limited Liability Partnership Act 2008
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH; M DILIP
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Assessment Year 2017-2018; Exparte order; Income Tax; Show cause notice; Undisclosed transaction
• Section: 148; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2025:KHC:6428 WP No. 3814 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO. 3814 OF 2025 (T-IT) BETWEEN: ALEPH DEVELOPERS AND CONSULTANTS LLP, HAVING ITS REGISTERED OFFICE AT 437-438, 2ND FLOOR, ALANKARA PEARL PLAZA, K.G. ROAD, BENGALURU - 560 009, REGISTERED UNDER SEC. 12(1) OF THE LIMITED LIABILITY PARTNERSHIP ACT 2008. REPRESENTED BY AUTHORIZED SIGNATORY MR. GOPI KISHAN KHETAN. …PETITIONER (BY SRI. SYED KHAMRUDDIN, ADVOCATE) AND: 1. DEPUTY COMMISSIONER INCOME TAX CIRCLE 3 (1) (1), BMTC BUILDING, 40 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANAGALA, BANGALORE, KARNATAKA - 560 095. 2. ASSISTANT COMMISSIONER INCOME TAX CIRCLE 5 (2) (1) 4, BMTC BUILDING, 40 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANAGALA, BANGALORE, KARNATAKA - 560 095. Digitally signed by KAVYA R Location: High Court of Karnataka - 2 - NC: 2025:KHC:6428 WP No. 3814 of 2025 3. ASSESSMENT UNIT, REPRESENTED BY ADDITIONAL/ JOINT/ DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. 4. NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED BY ADDITIONAL/ JOINT/ DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 11 0003. …RESPONDENTS (BY SRI. M. THIRUMALESH, ADVOCATE AND SRI. M. DILIP, ADVOCATE FOR R1 TO R4) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SHOW CAUSE NOTICE DATED 21.03.2024 BEARING REFERENCE NO. ITBA/AST/F/148A(SCN)/2023-24/1063092376(1) UNDER SECTION 148A (d) FOR THE YEAR 2017-18 PASSED BY THE R-1 (ANNX-A) AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT - 3 - NC: 2025:KHC:6428 WP No. 3814 of 2025 ORAL ORDER Heard Sri Syed Khamruddin, learned counsel for the petitioner and Sri M. Thirumalesh, learned counsel for respondents 1 to 4. 2. Though the matter is listed for preliminary hearing the matter is taken up for disposal, with the consent of learned counsels for the parties. 3. Learned counsel for the petitioner would submit that petitioner is before this Court under Article 226 of the Constitution of India, praying for the following reliefs, a. To quash the : Show cause notice (Annexure-A) dated 21.03.2024 bearing Reference No.ITBA/AST/F/148A(SCN)/2023-24/1063092376(1) issued under Section 148A(b) of the Income Tax Act, 1961 (for short 'the Act'); b. Notice (Annexure-C) dated 31.03.2024 issued under Section 148 of the Act; - 4 - NC: 2025:KHC:6428 WP No. 3814 of 2025 c. The order dated 31.03.2024 (Annexure-B) passed under Section 148A(d) of the Act; and d. Rebuttal to the objections (Annexure-D) by the 3rd respondent dated 17.09.2024, passed by 1st respondent. 4. Submission of learned counsel for the petitioner is that notice issued under Section 148A(b) of the Act is dated 21.03.2024, and time to file supporting documents is up to 28.03.2024. It is submitted that even before the petitioner could reply or seek information, order under Section 148A(d) of the Act was passed on 31.03.2024. It is submitted that in that circumstances, the petitioner had no reasonable opportunity to file objection as well as to participate in the proceedings. 5. Learned counsel would submit that respondents have not furnished reasons for re-opening the assessment; it has denied opportunity to file objections to notice at Annexure-A. - 5 - NC: 2025:KHC:6428 WP No. 3814 of 2025 6. On the other hand, learned counsel Sri M. Thirumalesh for respondents/revenue submits that notice at Annexure-A issued under Section 148A(b) of the Act, was served on the petitioner and the petitioner failed to produce the documents or file objections within the time specified therein. However, he admits that impugned order passed under Section 148 A(b) of the Act, is an exparte order. 7. Having heard the learned counsel for the parties and on perusal of the entire writ petition papers, I am of the view, that petitioner ought to be given an opportunity to file objection to Annexure-A notice dated 21.03.2024 issued under Section 148A(b) of the Act. It is noticed that notice (Annexure-A) is dated 21.03.2024 and time was provided till 28.03.2024 to produce documents or file objections. The notice also indicates that for the assessment year 2017-2018, the petitioner has undisclosed transaction of Rupees Five Crores. But the reason for re-opening the assessment is not disclosed and - 6 - NC: 2025:KHC:6428 WP No. 3814 of 2025 petitioner had no opportunity to file objection to the same. When the petitioner's substantial right is involved, petitioner ought to be given reasonable opportunity. 8. In the above circumstances, I am of the view, that petitioner ought to be given time to file objection to the notice issued under Section 148A(b) of the 1961 Act and thereafter, to proceed in accordance with law. Hence, I pass the following:- ORDER a. Writ petition is allowed. b. Annexure-C bearing No.ITBA/AST/F/S/148-1/ 2023-24/1063786271(1) dated 31.03.2024; Annexure-B bearing No.ITBA/AST/F/148A/2023- 24/1063783989(1) dated 31.03.2024 and Annexure- D bearing No.ITBA/AST/F117/2024- 25/1068736809(1) dated 17.09.2024, are quashed. c. The petitioner is granted two weeks time from today to file objection to notice dated 21.03.2024 - 7 - NC: 2025:KHC:6428 WP No. 3814 of 2025 (Annexure-A) issued under Section 148A(b) of the Act. d. Thereafter, the 1st respondent is directed to proceed further in accordance with law. Sd/- (S.G.PANDIT) JUDGE NG List No.: 1 Sl No.: 62 CT: BHK "