Bhavani Glass and Plywood Traders V. The Income Tax Officer Ward-1 and National Faceless Assessment Centre and The Principal Commissioner of Income Tax 1

WP/2367/2024

AI Insights

The case involves Bhavani Glass and Plywood Traders, represented by its authorized signatory, challenging various notices and orders issued by the Income Tax Department for the assessment year 2018-19. The petitioner argued that the initial notice under Section 148A(b) was not served, leading to an inability to respond, which resulted in subsequent orders and notices. The court considered the petitioner's claim of not receiving the notices due to the cessation of business and non-updating of contact details, and decided to set aside the impugned orders and notices, remitting the matter back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797753 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-03-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: RAVISHANKAR
• Keywords: Assessment year 2018-19; Income Tax; Notice Quashing; Section 148A; Writ of Certiorari
• Section: 147; 148; 144; 271AAC(1); 148A(b); 148A(d); 272A(1)(d)

Judgement Text

" - 1 - NC: 2024:KHC:10174 WP No. 2367 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF MARCH, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.2367 OF 2024 (T-IT) BETWEEN: BHAVANI GLASS AND PLYWOOD TRADERS CHURCH COMPLEX, K R ROAD, DAVANGERE, DAVANGERE 577001 REPRESENTED BY ITS AUTHORISED SIGNATORY SMT JYOTHI G MEHARWADE, D/O LATE SHRI JAWAHAR JARTARKAR, AGED ABOUT 40 YEARS, NO.4709/50, 5TH MAIN, 4TH CROSS, S S LAYOUT, B BLOCK DAVANGERE 577 001. …PETITIONER (BY SRI. RAVI SHANKAR S V., ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD-1, SHREE TOWERS, HADADI MAIN ROAD, OPP DRR HOSPITAL, DAVANGERE - 577 002. 2. NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED BY ADDITIONAL / JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER, INCOME TAX DEPARTMENT,. MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110 003. Digitally signed by VANDANA S Location: High Court of Karnataka - 2 - NC: 2024:KHC:10174 WP No. 2367 of 2024 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX 1 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX, BMTC BUILDING, BANGALORE 560 095. …RESPONDENTS (BY SRI.M.DILIP, ADVOCATE) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE U/S 148A(b) OF THE ACT DTD 17.03.2022 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2021-22/1040930047(1) ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE-A AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner seeks the following reliefs: “ i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 17.03.2022 bearing DIN No.ITBA/AST/F/148A(SCN)/2021-22/1040930047(1) issued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure-A. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act dated 31.03.2022 bearing DIN No. ITBA/AST/F/148A/2021-22/1042383074 (1) issued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure-A1. - 3 - NC: 2024:KHC:10174 WP No. 2367 of 2024 iii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act dated 31.03.2022 bearing DIN No.ITBA/AST/S/148_1/2021-22/1042399594(1) issued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure-A2. iv) Issue writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed U/s 147 r.w.s. 144 dated 16.03.2023 bearing DIN No.ITBA/ AST/S/147/2022-23/1050845038(1) issued by the Respondent No.2 for the assessment year 2018-19 herein marked as Annexure-A3. v) Issue writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271AAC(1) of the Act dated 30.08.2023 bearing DIN No.ITBA/PNL/F/271AAC(1) / 2023-24 / 1055586825(1) by the Respondent No.2 for the assessment year 2018-19 herein marked as Annexure-A4. vi) Issue writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 22.08.2023 issued U/s 272A(1)(d) of the Act bearing DIN and Notice No. ITBA/ PNL / F/272A (1)/2023- 24/1055490288(1) by the Respondent No.2 for the assessment year 2018-19 herein marked as Annexure-A5. vii) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” - 4 - NC: 2024:KHC:10174 WP No. 2367 of 2024 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 memorandum of 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 17.03.2022 was not served upon the petitioner, which stopped carrying on business as long back as in the year 2014 and the same was not sent to the existing e-mail and 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 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. - 5 - NC: 2024:KHC:10174 WP No. 2367 of 2024 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 if one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure – A1 dated 31.03.2022 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) The petition is hereby allowed. - 6 - NC: 2024:KHC:10174 WP No. 2367 of 2024 (ii) Impugned notices / orders at Annexures A, A1, A2, A3, A4 and A5 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 – A dated 17.03.2022. (iv) Petitioner is directed to appear before respondent No.1 on 22.04.2024 without awaiting further notice from respondent No.1. (v) Petitioner is reserved liberty to file reply / response along with documents on 22.04.2024, pursuant to which, respondent No.1 shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. SD/- JUDGE SV List No.: 1 Sl No.: 12 "