Ammajamma Muniyappa Hanumanthe Gowda V. The Additional/Joint/Deputy/Assistant Commissioner of Income Tax and The Income Tax Officer Circle 5(1)(1)

WP/20010/2023

AI Insights

The case involves Ammajamma Muniyappa Hanumanthe Gowda, the petitioner, challenging various income tax orders and notices issued by the Income Tax Department. The petitioner argued that she was not given a fair opportunity to respond to the notices due to an outdated email address linked to an ex-employee, which led to her inability to contest the proceedings effectively. The court found that the petitioner was not provided sufficient and reasonable opportunity to submit her replies and contest the proceedings, leading to the decision to set aside the orders and remit the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 692041 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-02-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India, Section 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, Section 274 read with section 270A of the Income Tax Act, Section 274 read with section 272A(1)(d) of the Income Tax Act, Section 274 read with section 271F of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: NARENDRA J
• Keywords: Assessment Order; Demand notice; Faceless assessment; Income Tax; Penalty notice; Re-assessment; Section 148A(d); Writ petition; Section 148A(b) notices
• Section: 147; 144; 271F; 270A; 144B; 272A(1)(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:7986 WP No. 20010 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 20010 OF 2023 (T-IT) BETWEEN: AMMAJAMMA MUNIYAPPA HANUMANTHE GOWDA S/O AMMAJAMMA MUNIYAPPA AGED ABOUT 49 YEARS 164/1, ULLAL POST SIR M VISHWESHARAIAH LAYOUT BANGALORE - 560 056. …PETITIONER (BY SRI NARENDRA KUMAR J, JAIN FOR SMT. GEETHA RANI K, ADVOCATE) AND: 1. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME -TAX OFFICER NATIONAL FACELESS - ASSESSMENT CENTRE INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO. 401, 2ND FLOOR E- RAMP, JAWAHARLAL NEHRU STADIUM DELHI - 110 003. 2. THE INCOME TAX OFFICER CIRCLE 5(1)(1), BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095. …RESPONDENTS (BY SRI E I SANMATHI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSITITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED ASSESSMENT ORDER VIDE ITBA/AST/S/147/2023-24/1052840170(1), DATED 15/05/2023 ISSUED BY THE LEARNED FIRST RESPONDENT Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:7986 WP No. 20010 of 2023 UNDER SECTION 147 R.W.S. 144 R.W.S. 144B FOR AY 2017-18, ENCLOSED IN ANNEXURE-A AND ETC., THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, the petitioner seeks the following reliefs; \"A. Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned assessment order vide ITBA/AST/S/147/2023- 24/1052840170(1), dated 15.05.2023 issued by the Learned First Respondent under section 147 r.w.s 144 r.w.s 144B for AY 2017-18, enclosed in Annexure A. B. Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned Demand Notice vide ITBA/AST/S/156/2023- 24/1052840366(1) dated 15.05.2023 for the payment of tax so assessed by the Learned First Respondent for the AY 2018-19, enclosed in Annexure B. C. Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned Penalty Notice under section 274 read with section 270A of the Act vide ITBA/PNL/S/270A/2023-24/1052840264(1) dated 15.05.2023 for levy of penalty under section 270A by the Learned First Respondent for the AY 2018- 19, enclosed in Annexure C. - 3 - NC: 2024:KHC:7986 WP No. 20010 of 2023 D. Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned Penalty Notice under section 274 read with section 272A(1)(d) of the Act vide ITBA/PNL/S/272A(1)(d)_FL/ 2023- 24/1052839438(1) dated 15.05.2023 for levy of penalty under section 272A(1)(d) by the Learned First Respondent for the AY 2018-19, enclosed in Annexure C1. E. Quash as far as the Petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned Penalty Notice under section 274 read with section 271F of the Act vide ITBA/PNL/S/271F/2023-24/1052840265(1), dated 15.05.2023 for levy of penalty under section 271F by the Learned First Respondent for the AY 2018- 19, enclosed in Annexure C2. F. Direct the Learned First and Second Respondent by an appropriate writ or Order in the nature of Mandamus or otherwise, not to take any coercive step towards recovery of the disputed tax as stated in demand Notice dated 15.05.2023 issued by First Respondent enclosed as Annexure B.\" G. Grant such other reliefs as this Honourable High Court may think fit including the cost of this writ petition.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents. - 4 - NC: 2024:KHC:7986 WP No. 20010 of 2023 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the E-mail I.D contained in the Income Tax Portal belongs to one Sri.Umesh, who was an Ex- employee, who did not intimate the petitioner about issuance of Section 148A(b) notices, as a result of which, the petitioner could not submit her reply along with the documents to Section 148A(b) notices at Annexures-E and G dated 20.05.2022 and 09.03.2023, as a result of which, the second respondent has proceeded to pass the impugned re-assessment orders under Section 148A(d) dated 26.07.2022 and 31.03.2023 without providing an opportunity to the petitioner, who is before this Court, by way of the present petition. It is submitted that in pursuance of the impugned order under Section 148A(d), the respondents have also issued a notice under section 148, which is followed by the Assessment Order at Annexure-A, which also deserves to be set-aside. 4. Per contra, learned counsel for the respondents would support the impugned orders, notices etc., and submit that there is no merit in the petition and the same is liable to be dismissed. - 5 - NC: 2024:KHC:7986 WP No. 20010 of 2023 5. Perusal of the material on record would indicate that it is the specific assertion on the part of the petitioner that the E-mail I.D contained / found in the Income Tax Portal was that of Sri.Umesh, who was an Ex-employee and the petitioner who had studied only upto 10th standard did not know how to operate the system and take necessary steps to submit her response / reply to 148A(b) notices, as a result of which the respondents proceeded to pass the impugned orders, without providing sufficient and reasonable opportunity in favour of the petitioner to submit her reply and contest the proceedings. In the light of the said specific assertion on the part of the petitioner to the effect that her inability and omission to submit responses / replies along with the documents and contest the proceedings was due to bonafide reasons and unavoidable circumstances and sufficient reasons, I deem it appropriate to set-aside the impugned orders, notices etc., and remit the matter back to the respondents for re-consideration afresh from the stage of submitted reply to the notices under Section 148A(b) of the I.T.Act and to proceed further, in accordance with law. 6. In the result, the following; - 6 - NC: 2024:KHC:7986 WP No. 20010 of 2023 ORDER (i) Petition is hereby allowed. (ii) Impugned assessment order at Annexure-A, impugned notices at Annexures-B, C, C1, C2, as well as orders at Annexures-F and H are hereby set-aside. (iii) The matter is remitted back to the second respondent for reconsideration afresh from the stage of filing reply to Section 148A(b) notices and to proceed further in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit the pleadings, reply documents etc., to the 148A(b) notices, which shall be considered by the respondents and to proceed further, in accordance with law. (v) All rival contentions of the parties are kept open and no opinion is expressed on the same. Sd/- JUDGE GH List No.: 1 "