M/S. ELEGANT PROPERTIES V. INCOME TAX OFFICER

WP/25206/2023

AI Insights

The case involves M/s. Elegant Properties, a partnership firm, which filed a writ petition against the Income Tax Officer and the Assessment Unit of the Income Tax Department, challenging several notices and an adjudication order related to the assessment year 2016-17. The petitioner contended that the notices and the subsequent orders were issued without providing a reasonable opportunity to respond, primarily due to the health issues of its Managing Partner, who was hospitalized during the critical period. The court considered the medical records and the circumstances presented by the petitioner, leading to the decision to quash the notices and the adjudication order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 674486 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 11-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Income Tax; Medical Emergency; Notice; Quashing; Reasonable opportunity; Writ petition
• Section: 148; 144; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2023:KHC:44884 WP No. 25206 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF DECEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 25206 OF 2023 (T-IT) BETWEEN: M/S. ELEGANT PROPERTIES A PARTNERSHIP FIRM HAVING ITS OFFICE AT NO.1, ELEGANT DESIRE, COLES ROAD, FRAZER TOWN, BENGALURU-560 005, REPRESENTED BY ITS PARTNER, MR. B. RAJASHEKAR. … PETITIONER (BY SRI. SYED KHAMRUDDIN, ADVOCATE) AND: 1. INCOME TAX OFFICER WARD NO.1(2) (1), BANGALORE BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. 2. ASSESSMENT UNIT INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, REPRESENTED BY INCOME TAX OFFICER Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:44884 WP No. 25206 of 2023 ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. … RESPONDENTS (BY SRI. SUSHAL TIWARI., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i) QUASHING THE NOTICE DATED 14/03/ 2023 BEARING NO. ITBA/AST/F/148A(SCN)/2022- 23/1050727713(1) UNDER SECTION 148A (b) OF THE INCOME TAX ACT ISSUED BY THE R1 FOR THE A.Y. 2016-17 (ANNEXURE-A) AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has impugned the following orders: “i) The Notice dated 14/03/2023 bearing No. ITBA/AST/F/148A(SCN) 2022-23/ 1050727713 (1) under section 148A (b) of the Income Tax Act issued by the 1st Respondent for the A.Y. 2016-17 (Annexure-A). ii) The order dated 30/03/2023 bearing No. ITBA/AST/F/148A/2022-23/ 1051645884 (1) under section 148A (d) of The Income - 3 - NC: 2023:KHC:44884 WP No. 25206 of 2023 Tax Act passed by the 1st Respondent for the A.Y. 2016-17 (Annexure-B). iii) The Notice dated 30/03/2023 bearing No. ITBA/AST/S/148-1/2022-23/1051648785 (1) under Section 148 of the Income Tax Act issued by the 1st Respondent for the A.Y. 2016-17 (Annexure-B1). iv) The Show Cause Notice dated 17/08/2023 bearing No. ITBA/AST/F/144(SCN)(F) 2023-24/ 1055172354 (1) under Section 144 of the Income Tax Act issued by the 2nd Respondent for the A.Y. 2016-17 (Annexure- C)\". Sri Syed Khamruddin, the learned counsels for the petitioner, and Sri Sushal Tiwari, the learned standing counsel for the respondent who is called upon to accept notice, are heard for final disposal of the petition in the light of the petitioner’s primary grievance viz. the lack of reasonable opportunity. The petitioner contends that its Managing Partner as of the relevant period viz., the second week of March 2023, was diagnosed with Acute - 4 - NC: 2023:KHC:44884 WP No. 25206 of 2023 Anterior Wall ST Elevation MI and hospitalized for certain procedure, and during this period, the notice under Section 148A[b] of the Income Tax Act, 1961 [for short, the ‘IT Act’] is issued on 14.03.2023 granting seven days for reply and ultimately the adjudication order dated 30.03.2023 is issued culminating with the Notice under Section 148 of the IT Act dated 30.03.2023 and the Show Cause Notice under Section 144 of the IT Act dated 17.08.2023. Sri Syed Khamsuddin, the learned Counsel for the petitioner while arguing in support of the petitioner’s grievance as aforesaid, relies upon the medical records produced as Annexure-D to contend that the petitioner is bona fide in saying that because of the health condition of its Managing Director and his subsequent hospitalization, no reply is given. These contentions, which are seen from the records, cannot be seriously disputed and hence there must be interference. Therefore, the following: - 5 - NC: 2023:KHC:44884 WP No. 25206 of 2023 ORDER [A] The petition is allowed. [B] The Adjudication Order dated 30.03.2023 under Section 148A(d) of the IT Act [Annexure-B], the consequential Notice dated 30.03.2023 under Section 148 of the IT Act [Annexure-B1] and the Show Cause Notice dated 17.08.2023 under Section 144 of the IT Act [Annexure-C] are quashed with liberty to the petitioner to file response to the Notice under Section 148 of the IT Act within a period of four weeks from the date of receipt of the notice from the first respondent. SD/- JUDGE NV "