ARJUN BELUR V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP/24501/2024

AI Insights

In this case, the petitioner, Arjun Belur, challenged several notices and orders issued by the Income Tax authorities under Sections 148 and 148A of the Income Tax Act, 1961, pertaining to the assessment year 2020-21. The petitioner contended that he did not receive the notice under Section 148A(b), which led to his inability to respond and submit necessary documents. The respondents argued that the petition lacked merit. The court, considering the petitioner's circumstances and the need for a fair opportunity to present his case, decided to set aside the impugned notices and orders and remand the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 766665 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 11-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: RAJEEV NULVI
• Keywords: Assessment year 2020-21; Income Tax; Notice Quashing; Writ of Certiorari
• Section: 148; 144; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:37272 WP No. 24501 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 24501 OF 2024 (T-IT) BETWEEN: ARJUN BELUR, S/O B N RAVI, AGED ABOUT 35 YEARS, PAN NO AWOPA 6701 E, RESIDING AT NO 1224, 10TH MAIN, GOKULAM III STAGE, MYSORE, KARNATAKA 570 002. …PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI.,ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1) AND TPS, MYSORE AYAKAR BHAVAN, MYSORE, KARNATAKA 570 008. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX RANGE-3, BENGALURU BMTC BUILDING, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORMANGALA, BENGALURU 560 095. 3. THE NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX OFFICER NORTH BLOCK, NEW DELHI, DELHI 110 001. …RESPONDENTS (BY SRI.M DILIP.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A. QUASHING THE IMPUGNED NOTICE DATED- 01/03/2024, BEARING DIN AND NOTICE NO-ITBA/AST/S/148-1/2023-24/1061818300(1), UNDER SEC. 148 OF THE INCOME TAX ACT, 1961, ISSUED BY THE RESPONDENT AUTHORITY NO. 1- THE ASSISTANT Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:37272 WP No. 24501 of 2024 COMMISSIONER OF INCOME TAX, CIRCLE 1(1) AND TPS, MYSORE, PERTAINING TO ASSESSMENT YEAR 2020-21, VIDE ANNEXURE- A AND ETC., THIS WRIT PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “a. To issue a Writ of Certiorari, quashing the impugned Notice Dated- 01/03/2024, bearing DIN and Notice No- ITBA/AST/S/148-1/2023-24/1061818300(1), under Sec. 148 of the Income Tax Act, 1961, issued by the Respondent Authority No. 1- the Assistant Commissioner of Income Tax, Circle 1(1) and TPS, Mysore, pertaining to Assessment Year 2020-21, vide ANNEXURE- A b. to issue a Writ of Certiorari, quashing the impugned Show Cause Notice dated- 08/02/2024, vide DIN No. ITBA/AST /F /148A(SCN) / 2023-24/ 1060674876(1), under Sec. 148A(b) of the Income Tax Act, 1961, issued by the Respondent Authority No. 1 - the Assistant Commissioner of Income Tax, Circle -1(1) and TPS, Mysore, pertaining to Assessment Year 2020-21, vide ANNEXURE- J; and c. To issue a Writ of Certiorari, quashing the impugned order dated- 01/03/2024, vide DIN No. ITBA/AST/F/148A/2023-24/1061817774(1), under Sec. 148A(d) of the Income Tax Act, 1961, passed by the Respondent Authority No. 1 the Assistant Commissioner of - 3 - NC: 2024:KHC:37272 WP No. 24501 of 2024 Income Tax, Circle - 1(1) and TPS, Mysore, pertaining to Assessment year 2020-21, vide ANNEXURE- K; and d. To issue a Writ of Certiorari, quashing the impugned intimation u/s 1448 of the Income Tax Act, 1961 dated- 26/06/2024, vide DIN No. ITBA/AST/S/61/2024- 25/1066073502(1), issued by the Respondent Authority No. 3 i.e., the National Faceless Assessment Center, Income Tax Department, in respect of the petitioner, pertaining to Assessment Year 2020-21, vide Annexure M, and e. To pass any such other Writ, Order or Direction as this Hon’ble Court might deem fit to be issued in the fact and circumstances of the case in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 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 notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 08.02.2024 was not received by petitioner and he was not aware of the notice and consequently, petitioner could not submit its reply / response along with documents to the - 4 - NC: 2024:KHC:37272 WP No. 24501 of 2024 said notice. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and as such, if one more opportunity is provided to the petitioner to do so by setting aside the impugned orders and notices, the petitioner would do so and respondents may be directed to proceed further in accordance with law. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5. A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has not submitted reply / response along with documents to Section 148A(b) notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply along with documents to Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and if one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside - 5 - NC: 2024:KHC:37272 WP No. 24501 of 2024 the impugned order at Annexure-K dated 01.03.2024 passed under Section 148A(d) of the IT Act and subsequent notice / orders, etc., and remit the matter back to respondent No.1 for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 148A(b) notice and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) Petition is hereby allowed. (ii) The impugned notices / orders at Annexures – A, K and M are hereby set aside. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section 148A(b) of the IT Act at Annexure-J dated 08.02.2024. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient - 6 - NC: 2024:KHC:37272 WP No. 24501 of 2024 and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Bsv List No.: 2 Sl No.: 14 "