Kalia Balamurugan V. Income Tax Officer Ward 6(2)(1) and Additional/Joint/Deputy/Assistant Commissioner of Income Tax National Faceless Assessment Centre

WP/13660/2024

AI Insights

In this writ petition, Kalia Balamurugan challenged the validity of several notices and orders issued by the Income Tax Department concerning the assessment year 2018-19. The primary contention was regarding the notice issued under Section 148A(b) of the Income Tax Act, which allegedly provided insufficient time for the petitioner to respond, thus violating the statutory requirement and principles of natural justice. The petitioner argued that the notice was issued on 28.03.2022 but was digitally signed only on 29.03.2022, effectively giving only six days for a response instead of the required minimum of seven days. The court agreed with the petitioner's contention, leading to the setting aside of the notice and all related orders.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 814407 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 03-07-2024
• Assessment Year: misc
• Laws Referred To: Constitution of India, Section 148A of the Act, Section 148 of the Act, Section 147 r/w 144 r/w 144B of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: BALRAM RAO
• Keywords: Assessment year 2018-19; Digital Signature; Income Tax; Natural Justice; Writ petition
• Section: 148; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:25059 WP No. 13660 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 13660 OF 2024 (T-IT) BETWEEN: 1. KALIA BALAMURUGAN S/O V K PERUMAL AGED ABOUT 51 YEARS R/AT: 244, RAINDROPS APARTMENT, HARALUR ROAD, OFF SARJAPUR ROAD, BENGALURU - 560 103 PAN NO: AANPB2820J … PETITIONER (BY SRI. BALRAM R RAO., ADVOCATE) AND: 1. INCOME TAX OFFICER WARD 6(2)(1) BMTC BUILDING, 80 FT ROAD, KORAMANGALA BENGALURU - 560 095 2. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, DELHI II FLOOR, E-RAMP, Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:25059 WP No. 13660 of 2024 JAWAHARLAL NEHRU STADIUM DELHI - 110 003 … RESPONDENTS (BY SRI. M. DILIP, JUNIOR STANDING COUNSEL) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i. ISSUE A WRIT OF CERTIORARI OR A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA CALLING FOR THE RECORDS OF THE PETITIONER'S CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE IMPUGNED ORDER PASSED UNDER CLAUSE (d) OF SECTION 148A OF THE ACT DATED 05.04.2022 IN DIN AND NOTICE NO. ITBA/AST/F/148A/2022-23/1042525161(1) ANNEXURE -B AS WELL AS NOTICE ISUED UNDER SECTION 148 OF THE ACT DATED 07.04.2022 IN DIN AND NOTICE NO. ITBA/AST/S/148_1/2022-23/1042628369(1) ANNEXURE -C PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 AND ETC. THIS PETITION, COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has challenged the validity of the order at Annexure-B under Section 148A(d) as well as notice under Section 148 at Annexure-C, order under Section 147 r/w 144 r/w 144B at Annexure-L, Demand Notice at Annexure-M, Order dated 23.01.2024 at Annexure-L, Demand Notice dated 23.01.2024 at Annexure-M and Order dated 23.01.2024 at Annexure-L. - 3 - NC: 2024:KHC:25059 WP No. 13660 of 2024 2. It is the case of the petitioner that notice under Section 148A(d) was issued which was dated 28.03.2022. 3. It is further submitted that the said notice was digitally signed on 28.03.2022 and accordingly the date of issuance is to be taken as 29.03.2022. It is submitted that reply was required to be made by 04.04.2022 and in light of the time that was made available to make out reply being 06 days, notice under Section 148A(b) requires to be set aside as being in violation of Section 148A (b) as not affording period for making out of reply which ought to be not less than 07 days. 4. It is submitted that by virtue of the short time available, petitioner was prejudiced and there has been violation of principles of natural justice. Accordingly, it is submitted that the relief as sought is required to be granted. 5. It is noticed that notice at Annexure-A under Section 148A (b) though is dated 28.03.2022, was digitally signed on 29.03.2022 as verified and submitted by the - 4 - NC: 2024:KHC:25059 WP No. 13660 of 2024 learned counsel for Revenue. If that were to be so, response to be made within 04.04.2022 would amount to calling upon the petitioner to make response within a period of 06 days even if it is assumed that notice was served on 29.03.2024 itself. 6. Section 148A(b) reads as follows: (b)provide an opportunity of being heard to the assessee, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); 7. In light of non-compliance to the time limit required, it can be taken that contention of the petitioner that he has been prejudiced by non-granting of time as - 5 - NC: 2024:KHC:25059 WP No. 13660 of 2024 available in law requires to be accepted in light of Section 148A(b). 8. Accordingly, on such sole ground, notice under Section 148A (b) is set aside. Consequently, the order at Annexure-B, notice at Annexure-'C', order at Annexure-L and Annexure-M are set aside. The order at Annexure-L and notice at Annexure-M are also set aside. Respondents are at liberty to take action regarding subject matter of notice that is set aside if permissible as per law. 9. All contentions are kept open. Sd/- JUDGE Np/- "