HULIBELE VENKATACHALAM GOWDA NAGESH V. THE INCOME TAX OFFICER

WP/9703/2024

AI Insights

In this case, the petitioner, Hulibele Venkatachalam Gowda Nagesh, challenged the orders passed by the Income Tax Officer under sections 148(d) and 147 read with section 144B of the Income Tax Act, 1961. The petitioner contended that he did not receive the notice under Section 148A(b), which led to his inability to respond and submit necessary documents, thus affecting the subsequent orders. The court, considering the petitioner's circumstances and the bona fide reasons for his omission, decided to set aside the impugned orders and remit the matter back for fresh consideration, allowing the petitioner another opportunity to respond.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747434 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 30-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: S
• Keywords: Income Tax; Notice; Section 144B; Section 147; Section 148A; Writ petition; Order Quashing
• Section: 147; 144B; 148A(b); 226; 148(d); 227

Judgement Text

" - 1 - NC: 2024:KHC:40600 WP No. 9703 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 9703 OF 2024 (T-IT) BETWEEN: HULIBELE VENKATACHALAM GOWDA NAGESH S/O H V GOWDA, AGED ABOUT 53 YEARS, NO.11, BALAJI NILAYA, 2ND BLOCK, HORAMAVU ROAD, RAMAMURTHY NAGAR, BANGALORE-560 016. PAN NO.AEZPN6888A …PETITIONER (BY SRI. S PARTHASARATHI.,ADVOCATE) AND: 1. THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT, WARD-4(1)(1), BANGALORE-560 095. 2. THE INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-110 001. …RESPONDENTS (BY SRI.M DILIP,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE IMPUGNED ORDERS PASSED BY THE R1 AS BEING PERVERSE, ILLEGAL AND UNSUSTAINABLE IN LAW, THEREBY DIRECTING THE R1 TO CANCEL THE ORDER PASSED U/S 148(d) VIDE DIN AND NOTICE NO.ITBA/AST/F/148A/2022.23/1051067902(1) DTD 21.03.2023 WHICH IS PRODUCED AT ANENXURE-B AND U/S 147 R.W.S 144B OF THE ACT, VIDE DIN AND NOTICE NO.ITBA/AST/S/147/2023.24/1061177331(1) DTD 20.02.2024 WHICH IS PRODUCED AT ANNEXURE-F AND ETC., Digitally signed by Vandana S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:40600 WP No. 9703 of 2024 THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “a) Issue a writ in the nature of certiorari, mandamus, prohibition or any other appropriate writ, order or direction quashing the impugned orders passed by the Respondent No.1 as being perverse, illegal and unsustainable in law, thereby directing the Respondent No.1 to cancel the order passed u/s 148(d) vide DIN & Notice No.ITBA/AST/F/148A/2022.23/1051067902(1) dated 21.03.2023 which is produced at (Annexure-B) and u/s 147 r.w.s 144B of the Act, vide DIN & Notice No.ITBA/AST/S/147/2023.24/1061177331(1) dated 20.02.2024 which is produced at (Annexure-F). b) Issue a writ in the nature of Prohibition/Mandamus or any other appropriate writ, order or direction staying the operation of the impugned orders passed by Respondent No.1 vide DIN & Notice No.ITBA/AST/F/148A/2022- 23/1051067902(1) dated 21.03.2023 which is produced at (Annexure-B) and u/s 147 r.w.s. 144B of the Act, vide DIN & Notice No.ITBA/AST/S/147/2023-24/1061177331(1) dated 20.02.2024 which is produced at (Annexure-F) and direct the Respondents to cancel the addition made in the hands of the Petitioner. c) Issue a writ in the nature of certiorari, mandamus, prohibition or any other appropriate writ, order or direction quashing the impugned demand issue by Respondent No.1 vide DIN & Notice No.ITBA/AST/F/148A/2022- 23/1051067902(1) dated 21.03.2023 which is produced at (Annexure-B) and u/s 147 r.w.s. 144B of the Act, vide DIN & Notice No.ITBA/AST/S/147/2023-24/1061177331(1) dated 20.02.2024 which is produced at (Annexure-F). d) Issue any other writ, order or direction in favour of the Petitioner, which this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.” - 3 - NC: 2024:KHC:40600 WP No. 9703 of 2024 2. Heard learned counsel for the petitioners 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 16.02.2023 was 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. 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. - 4 - NC: 2024:KHC:40600 WP No. 9703 of 2024 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 his inability and omission to submit a reply along with documents to Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and 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-B dated 21.03.2023 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. (ii) Impugned notices / orders at Annexures B and F are hereby set aside. - 5 - NC: 2024:KHC:40600 WP No. 9703 of 2024 (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 16.02.2023. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 13 "