Gangadhvareshwara Enterprises SBG Bar V. The Income Tax Officer Ward 1 and TPS and Assessment Unit National Faceless Assessment Centre

WP/5857/2024

AI Insights

The case involves M/s Gangadhvareshwara Enterprises, represented by its partner Sri. Sachin H Narayan, who filed a writ petition against the Income Tax Officer and the Assessment Unit National Faceless Assessment Centre. The petitioner sought to quash the orders and notices issued for assessment and demand of tax, claiming that they were passed without proper opportunity to contest due to non-receipt of the show cause notice. The court found merit in the petitioner's argument that the inability to respond was due to bona fide reasons and thus set aside the impugned orders, remitting the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 818074 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-04-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SRI ADVOCATE
• Assessee Lawyers: VANI
• Keywords: Faceless assessment; Income Tax; Reconsideration; Show cause notice; Writ petition
• Section: 147; 144B; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:16552 WP No. 5857 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF APRIL, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 5857 OF 2024 (T-IT) BETWEEN: 1. M/S GANGADHARESHWARA ENTERPRISES SBG BAR, B M ROAD, SAKALESHAPURA 573 134 REPRESENTED BY ITS PARTNER, SRI. SACHIN H NARAYAN, S/O H G NARAYAN, AGED ABOUT 46 YEARS, REGISTERED PARTNERSHIP FIRM …PETITIONER (BY SRI. VANI H.,ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 1 AND TPS AAYAKAR BHAVAN, 2nd STAGE, BELUR ROAD, HASSAN 573 201 2. ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT GOVERNMENT OF INDIA, MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI 110001 …RESPONDENTS (BY SRI. .,ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) QUASH THE SET ASIDE THE IMPUGNED ORDER BEARING DIN AND NOTICE NO. ITBA/AST/F/148A/2022-23/1051003547(1) DATED 20/03/2023 PASSED Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:16552 WP No. 5857 of 2024 UNDER SECTION 148A(d) OF THE ACT VIDE ANNEXURE-D IMPUGNED ORDER BEARING DIN ITBA/AST/S/147/2023- 24/1060379418(1) DATED 01/02/2024 PASSED BY THE SECOND RESPONDENT UNDER SECTION 147 READ WITH SECTION 144B OF THE ACT VIDE ANNEXURE-G, AND THE DEMAND NOTICE BEARING DIN AND NOTICE NO. ITBA/AST/S/156/2023-24/1060379471(1) DATED 01/02/2024 ISSUED BY THE SECOND RESPONDENT VIDE ANNEXURE-G1. THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner seeks the following reliefs: “(a) Issue a writ of certiorari or any other writ or a direction to quash and set aside the impugned order bearing DIN & Notice No.ITBA/AST/S/148A/2022-23/1051003547(1) dated 20.3.2023 passed under Section 148 A(d) of the Act vide Annexure-D impugned order bearing DIN ITBA/AST/S/147/2023-24/106037918(1) dated 1.2.2024 passed by the second respondent under section 147 read with section 144B of the Act VIDE Annexure-G, and the demand notice bearing DIN & Notice No.ITBA/AST/S/156/2023-24/1060379471(1) dated 01.2.2024 issued by the second respondent vide Annexure- G-1 (b) Issue a writ of mandamus or a writ in the nature of mandamus direction the respondents to afford reasonable opportunity to petitioner to furnish reply to notice under Section 148A(b) and to pass orders in accordance with law - 3 - NC: 2024:KHC:16552 WP No. 5857 of 2024 after judiciously considering all the replies and documents to be furnished by petitioner. (c) Issue such other order and further reliefs as deemed fit by this Hon’ble Court.” 2. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned Senior Counsel for the petitioner submits that the petitioners did not receive the show cause notice dated 09.03.2023 issued by the respondent No.1 under Section 148 A(b) of the IT Act. As a result of which the petitioner could not submit its reply and contest the proceedings which culminated in the impugned order and consequential notices which deserves to be set aside and the matter remitted back to the respondent for reconsideration afresh by providing sufficient and reasonable opportunity to the petitioner and giving him an opportunity of personal hearing in the matter. 3. Per contra, learned counsel for the respondent would submit that there is no merit in the petition and same is liable to be dismissed. - 4 - NC: 2024:KHC:16552 WP No. 5857 of 2024 4. A perusal of the material on record will indicate that the inability and omission on the part of the petitioner to submit its reply to the notice under Section 148 A(b) of the IT Act and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause. Under these circumstances, adopting a justice oriented approach and in order to provide one more opportunity to the petitioner to file its reply along with the documents and contest the show cause notices and proceedings pursuant thereto, I deem it just and appropriate to set aside the impugned order at Annexure – D, consequential notices at Annexure – G and G1, consequently remit the matter back to the respondent No.1 for reconsideration afresh from the stage of submission of reply to the show cause notice dated 09.03.2023 under Section 148 A(b) of the IT Act, and to proceed further in accordance with law. 5. In the result, I pass the following: ORDER (i) Petition is hereby allowed. - 5 - NC: 2024:KHC:16552 WP No. 5857 of 2024 (ii) The impugned order at Annexures – D, G and G1 are hereby set aside. (iii) The matter is remitted back to the respondent No.1 for reconsideration afresh from the stage of the petitioner filing objections along with documents to show cause notice dated 09.03.2023 issued under Section 148 A(b) of the IT Act. (iv) Liberty is reserved in favour of the petitioner to file pleadings, objections, documents etc., which shall be considered by the respondent No.1 who shall provide an opportunity to the petitioner and hear him and proceed further in accordance with law. Sd/- JUDGE DHA List No.: 1 Sl No.: 17 "