BANGALORE NARAYAN DAS V. THE INCOME TAX OFFICER

WP/31987/2024

AI Insights

The case involves Bangalore Narayan Das, the petitioner, who challenged the penalty order under Section 271(1)(c) of the Income-Tax Act, 1961, for the assessment year 2014-2015. The penalty was imposed following an assessment order that was later set aside by the Income Tax Appellate Tribunal. The petitioner argued that since the foundational assessment order was nullified, the subsequent penalty was unjustified. The respondent, the Income Tax Officer, did not contest the petitioner's claim in light of the Tribunal's decision. Consequently, the High Court of Karnataka ruled in favor of the petitioner, setting aside all related orders and notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 761603 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 03-12-2024
• Assessment Year: misc
• Other Referred Cases: IT(IT)A No.120/Bang/2022
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI; M DILIP
• Assessee Lawyers: ANNAMALAI
• Keywords: Assessment Year 2014-15; Income tax appellate tribunal; Penalty order; Writ of Certiorari
• Section: 271(1)(c)

Judgement Text

" - 1 - NC: 2024:KHC:52835 WP No. 31987 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF DECEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO. 31987 OF 2024 (T-IT) BETWEEN: BANGALORE NARAYAN DAS, S/O LATE SRI. DARAPALLIAPPA NARAYAN, AGED ABOUT 54 YEARS, PRESENTLY RESIDING AT NO. 600, CHANDANA, 19TH CROSS, 23RD A MAIN, HSR LAYOUT 2ND STAGE, BENGALURU - 560 101. PAN: ALVPD7252K. …PETITIONER (BY SRI. ANNAMALAI S, ADVOCATE) AND: THE INCOME TAX OFFICER, WARD INTERNATIONAL TAXATION 1(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. …RESPONDENT (BY SRI. E.I. SANMATHI, ADVOCATE AND SRI. M. DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE PENALTY ORDER PASSED UNDER SECTION 271(1)(c) OF THE ACT DATED 01.04.2022 BEARING DIN. ITBA/PNL/F/271(1)(C)/2022-23/1042408915(1) PASSED BY Digitally signed by H K HEMA Location: High Court of Karnataka - 2 - NC: 2024:KHC:52835 WP No. 31987 of 2024 THE RESPONDENT FOR THE AY 2014-15 HEREIN MARKED AS ANNX-A1 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.I.ARUN ORAL ORDER The petitioner in the instant writ petition has challenged the order or penalty passed under Section 271(1)(c) of the Income-Tax Act, 1961 (for short, hereinafter referred to as IT Act) for the assessment year 2014-2015 passed by respondent. 2. The case of the petitioner is that an assessment order passed in respect of assessment year 2014-2015, which came to be challenged by him in IT(IT)A No.120/ Bang/2022 before the Income Tax Appellate Tribunal, Bengaluru. The same came to be allowed and the order of assessment passed against the petitioner for the assessment year 2014-2015 came to be set aside. It is submitted that the impugned order under Section - 3 - NC: 2024:KHC:52835 WP No. 31987 of 2024 271(1)(c) of the IT Act has been passed on the ground of existence of the order for the assessment year 2014-2015, which has been set aside by the Income Tax Appellate Tribunal. As the Income Tax Appellate Tribunal has set aside the assessment order itself, the question of levying penalty based on the said order does not arise. On the said ground, the present writ petition is filed with the following prayers: i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty order passed under Section 271(1)(c) of the Act dated 01/04/2022 bearing DIN:ITBA/PNL/F/271(1)(c)/ 2022-23/1042408915 (1) passed by the respondent for the AY 2014-15 herein marked as Annexure-A1. ii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 31/03/2022 bearing DIN and Order No.ITBA/PNL/S/992/2021-22/1042330835 (1) issued by the respondent for the AY 2014-15 herein marked as Annexure-A2. iii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 31/03/2022 bearing DIN and Notice No. ITBA/PNL/S/156/2021-22/1042391586(1) issued by the respondent for the AY 2014-15 herein marked as Annexure-A3. iv) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty - 4 - NC: 2024:KHC:52835 WP No. 31987 of 2024 notice dated 31/12/2019 bearing DIN and Notice No.ITBA/PNL/S/271(1)(c)/2019-20/1023505028(1) issued by the respondent for the AY 2014-15 herein marked as Annexure-A4. 3. The learned counsel appearing for the respondent fairly submits that in the light of the assessment order being set aside by the Income Tax Appellate Tribunal in IT(IT)A No.120/Bang/2022, the writ petition is liable to be allowed. 4. In view of the above, the following: ORDER i) The Writ Petition is allowed. ii) The order/notice issued by the respondent for the assessment year 2014-2015 vide Annexures-A1, A2, A3 and A4 are set aside. Sd/- (M.I.ARUN) JUDGE DH "