ANUNAHALLY NANJACHARI SWAMY V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP/13679/2023

AI Insights

In this writ petition, the petitioner, Anunahally Nanjachari Swamy, challenged the notice and subsequent orders issued by the Assistant Commissioner of Income Tax, Central Circle, Mysore, under various sections of the Income Tax Act, 1961, for the assessment year 2019-2020. The petitioner argued that the time provided to respond to the notice under Section 148A(b) was insufficient, leading to a violation of natural justice as he could not submit a reply within the stipulated time. The court considered the procedural fairness and the legal consequences of the orders passed and decided to set aside the notices and orders, remitting the matter back to the stage post-148A(b) for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 689715 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-07-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: ANNAMALAI
• Keywords: Assessment Order; Income Tax; Natural Justice; Notice Quash; Writ petition
• Section: 148; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2023:KHC:24190 WP No. 13679 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JULY, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 13679 OF 2023 (T-IT) BETWEEN: 1. ANUNAHALLY NANJACHARI SWAMY S/O SRI.NANJACHARI, AGED ABOUT 51 YEARS, NO.231, CHAMANAHALLI, BANNUR HOBALI, T NARASIPURA TALUK - 571 101. PAN: AINPS5348E … PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, CENTRAL CIRCLE MYSORE, AAYAKAR BHAVAN, NO.21/16, RESIDENCY ROAD, NAZARBAD, MYSORE - 570 010 … RESPONDENT (BY SRI. SUSHAL TIWARI., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE ISSUED U/S 148A(b) OF THE ACT DTD 10.03.2023 BEARING DIN AND NOTICE NO.ITBA/AST/F/148A(SCN)/2022-23/1050615239(1) ISSUED BY THE RESPONDENT FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANNEXURE-A1 AND ETC. Digitally signed by VIDYA G R Location: High Court of Karnataka - 2 - NC: 2023:KHC:24190 WP No. 13679 of 2023 THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has sought for setting aside of the notice issued under Section 148A(b) of the Income Tax Act, 1961 ('I.T. Act' for brevity) at Annexure-'A1' dated 10.03.2023, the Assessment Order at Annexure-'A2' dated 28.03.2023 for the Assessment Year 2019-2020 passed under Section 148A(d) and the notice dated 28.03.2023 at Annexure-'A3' issued under Section 148 of the I.T. Act. 2. Learned counsel for the petitioner submits that in terms of the notice issued under Section 148A(b) at Annexure-'A1', the time for submitting the reply was ten days. It is submitted that such time afforded was insufficient and due to bona fide reasons, the petitioner could not make out his reply within such time and accordingly, the order passed under Section 148A(d) at Annexure-'A2' is proceeded without any reply by the petitioner, which amounts to the violation of principles of natural justice. - 3 - NC: 2023:KHC:24190 WP No. 13679 of 2023 3. It is submitted that in terms of Section 148A(b) of the I.T. Act, the Authority concerned may issue notice not less than seven days and not exceeding thirty days in light of which further accommodation ought to have been granted to the petitioner to file his reply. 4. Heard both sides. 5. Taking note that the order passed Section 148A(d) is on the premise that the assessee has failed to furnish explanation and looking into the nature of legal consequence flowing from the order passed under Section 148A(d), it would be appropriate in the peculiar facts of the present case to direct the respondent Authority to afford an opportunity to the petitioner to furnish his reply to the notice issued under Section 148A(b) of the I.T. Act. 6. Accordingly, the notice at Annexure-'A1' dated 10.03.2023 and the order dated 28.03.2023 at Annexure-'A2' are set aside and also the consequential notice dated 28.03.2023 at Annexure-'A3' issued under Section 148 is set aside. The matter is remitted to the - 4 - NC: 2023:KHC:24190 WP No. 13679 of 2023 stage of post 148A(b) of the I.T. Act. The respondent Authority is to afford an opportunity to the petitioner to make out his reply and proceed further. All contentions are kept open. This petition is accordingly disposed off. Sd/- JUDGE VGR "