Audrey Nair V. The Income Tax Officer, Office of the Income Tax Officer Ward 4(3)(2) and Deputy Commissioner of Income Tax Ward 4(3)(2)

WP/25820/2023

AI Insights

The case involves Audrey Nair, the petitioner, challenging orders issued by the Income Tax Department under Sections 147 and 144 of the Income Tax Act, 1961. The petitioner contended that the notices were not properly served and that she was not given adequate opportunity to respond, which violated the principles of natural justice. The respondents defended the validity of the orders. The court found that the details of the notice's service were indeed absent from the impugned orders and that the petitioner was not given a fair opportunity to respond, leading to the decision to set aside the orders and remit the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797816 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: BORKAR SUBODH
• Keywords: Coercive Measures; Income Tax; Natural Justice; Quash order; Writ petition
• Section: 147; 144; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:7054 WP No. 25820 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.25820 OF 2023 (T-IT) BETWEEN: AUDREY NAIR W/O SHASHIDHARAN K NAIR AGED ABOUT 63 YEARS AWDD N -118, NO. 47, MANIPAL CENTRE DICKSON ROAD BENGALURU - 560042 …PETITIONER (BY SRI. BORKAR SHEETAL SUBODH, ADVOCATE) AND: 1. THE INCOME TAX OFFICER OFFICE OF THE INCOME TAX OFFICER WARD 4(3)(2) BANGALORE - 560 027. 2. DEPUTY COMMISSIONER OF INCOME TAX WARD 4(3)(2) BANGALORE - 560 027. …RESPONDENTS (BY SRI SUSHAL TIWARI, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 25/03/2023 BEARING DIN AND ORDER NO. ITBA/AST/S/147/2022-23/1051329248(1), ENCLOSED AS ANNEXURE- C, PASSED BY THE RESPONDENT UNDER SECTION 147 R/W SECTION 144 OF THE INCOME TAX ACT 1961, ALONG WITH THE IMPUGNED ORDER DATED 30/03/2022, VIDE ANNEXURE-B AND DIRECT THE RESPONDENT TO REFRAIN AND NOT TO PROCEED Digitally signed by VANDANA S Location: High Court of Karnataka - 2 - NC: 2024:KHC:7054 WP No. 25820 of 2023 FURTHER AND INITIATE COERCIVE MEASURES IN TERMS OF PENALTY / RECOVERY, ON THE BASIS OF THE IMPUGNED ORDER DATED 25/03/2023 BEARING DIN AND ORDER NO. ITBA/AST/S/147/2022-23/1051329248(1), PASSED BY THE RESPONDENT UNDER SECTION 147 R/W SECTION 144 OF THE INCOME TAX ACT 1961, ANNEXURE-C AND ETC THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, the petitioner seeks the following reliefs: i. Issue a writ of certiorari or in the like nature of the writ, quashing the impugned order dated 25.03.2023 bearing DIN & Order No.ITBA/AST/S/147/2022- 23/1051329248(1) enclosed as Annexure-C passed by the respondent under Section 147 r/w. Section 144 of the Income Tax Act, 1961 along with the impugned order by the respondent bearing No.DIN and Notice No.ITBA/AST/F/148A/2021-22/1042057741(1) dated 30.03.2022 vide Annexure-B; ii. Issue a writ of mandamus or in the like nature of writ, directing the respondent to refrain and not to proceed further and initiate coercive measures in terms penalty / recovery, on the basis of the impugned order dated 25.03.2023 bearing DIN & Order No.ITBA/AST/S/147/2022- 23/1051329248(1) passed by the respondent under Section 147 r/w. Section 144 of the Income Tax Act, 1961 Annexure- C and thereby drop the further proceedings initiated against the petitioner; - 3 - NC: 2024:KHC:7054 WP No. 25820 of 2023 iii. Issue a writ of mandamus or in nature of writ directing the respondent authorities not to initiate any proceedings of whatsoever in nature, in respect of the impugned order dated 25.03.2023 bearing DIN & Order No.ITBA/AST/S/147/2022-23/1051329248(1) passed by the respondent under Section 147 r/w. section 144 of the Income Tax Act, 1961 vide Annexure-C till disposal of this writ petition; iv. Issue a writ of prohibition or any other writ of like nature, directing the respondent not to proceed with coercive steps by way of any proceedings of whatsoever in nature, in respect of the impugned order dated 25.03.2023 bearing DIN & Order No.ITBA/AST/S/147/2022-23/10513292 48(1) passed by the respondent under Section 147 r/w. Section 144 of the Income Tax Act, 1961 vide Annexure-C till disposal of this writ petition; and v. Pass such other or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case, in the interests of justice and equity.\" 2. In addition to reiterating the various contentions urged in the petition and referring to the material on record, the learned counsel for the petitioner invites my attention to the impugned order dated 25.03.2023 [Annexure-C] in order to point out that the material details and particulars regarding service of notice under Section 148 A(b) of the Income Tax Act, 1961 [for short, 'IT Act'] dated 16.03.2022 which is said to have been served upon the - 4 - NC: 2024:KHC:7054 WP No. 25820 of 2023 petitioner are conspicuously absent in the impugned order. It is also submitted that the notice was not received by the petitioner and the petitioner was not provided sufficient and reasonable opportunity to submit his response / reply along with the documents to the aforesaid notice under Section 148 A(b) of the IT Act and consequently, the impugned order under Section 148 A(d) of the IT Act is violative of principles of natural justice and the same deserves to be set aside and the matter be remitted back to the respondents for reconsideration afresh in accordance with law. 3. Per contra, the learned counsel for the respondents would support the impugned order and submits that there is no merit in the petition and the same is liable to be dismissed. 4. As rightly contended by learned counsel for the petitioner, a perusal of the impugned order indicates that except stating that the notice under Section 148A(b) of the IT Act had been issued, the respondents has neither stated nor given the details/particulars regarding service of notice upon the petitioner nor any opportunity has been provided to the petitioner to submit his response / reply to the said notice. - 5 - NC: 2024:KHC:7054 WP No. 25820 of 2023 5. Under these circumstances coupled with the specific assertion on the part of the petitioner that his inability and omission to submit his reply to the notice under Section 148A(b) of the IT Act was due to bonafide reasons, unavoidable circumstances and sufficient cause, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh in accordance with law from the stage of notice under Section 142 A(b) of the IT Act and proceed further in the matter. 6. In the result, the following: ORDER i. The petition is allowed. ii. The impugned orders at Annexure-B dated 16.03.2022 and Annexure-C dated 25.03.2023 are hereby set aside. iii. The matter is remitted back to the respondents for reconsideration afresh in accordance with law from the stage of issuance of notice under Section 148 A(b) of the IT Act. - 6 - NC: 2024:KHC:7054 WP No. 25820 of 2023 iv. Liberty is reserved in favour of the petitioner to submit his reply / response along with documents to the notice under Section 148A(b) of the IT Act which shall be considered by the respondents after providing sufficient and reasonable opportunity to the petitioner in accordance with law. SD/- JUDGE SA List No.: 1 Sl No.: 21 "