Karnataka Advocates Welfare Fund Trustee Committee V. Assessment Unit, Income Tax Department, National Faceless Assessment Centre and Income Tax Officer Ward 1(2)(1) and Principal Chief Commissioner of Income Tax, Karnataka and Goa

WP/30364/2024

AI Insights

The case involves the Karnataka Advocates Welfare Fund Trustee Committee, which filed a writ petition against the Income Tax Department, challenging the assessment order for the year 2019-20. The petitioner argued that it is exempt from income tax and that the notices and orders issued were not properly served, nor was an adequate opportunity provided to respond. The respondents contended that notices were served, but the petitioner remained ex-parte. The court found merit in the petitioner's arguments, particularly regarding the lack of proper service and opportunity to respond, leading to the decision to set aside the impugned orders and remand the case for further proceedings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 686745 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 21-11-2024
• Assessment Year: misc
• Laws Referred To: Advocates Welfare Fund Act, 1983, Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: A SHANKAR
• Keywords: Assessment Order; Ex-parte; Income tax exemption; Non-amenable to Taxation; Service of notice
• Section: 147; 144; 142(1); 3; 144B; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:47396 WP No. 30364 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF NOVEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO. 30364 OF 2024 (T-IT) BETWEEN: 1. KARNATAKA ADVOCATES WELFARE FUND TRUSTEE COMMITTEE, CONSTITUTED UNDER SECTION 3 OF THE ADVOCATES WELFARE FUND ACT, 1983, REPRESENTED BY ITS I/C SECRETARY, SMT. SUNITHA K.N, WIFE OF SRI. SATYANARAYANA SETTY, AGED ABOUT 58 YEARS, 1ST FLOOR, OLD KGID BUILDING, DR. AMBEDKAR VEEDHI ROAD, BANGALORE - 560 001. …PETITIONER (BY SRI. A. SHANKAR, SR. COUNSEL FOR SRI. MADHUSUDHAN U.A, ADVOCATE) AND: 1. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, Digitally signed by H K HEMA Location: High Court of Karnataka - 2 - NC: 2024:KHC:47396 WP No. 30364 of 2024 DELHI - 110 003. 2. THE INCOME TAX, OFFICER WARD 1(2)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. 3. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KARNATAKA AND GOA, CENTRAL REVENUE BUILDING, QUEEN'S ROAD, BANGALORE - 560 001. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED 20.02.2024 PASSED UNDER SECTION 147 R.W.S 144 R.W.S. 144B OF THE ACT FOR THE ASSESSMENT YEAR 2019-20 BY THE R-1 BEARING DIN NO. ITBA/AST/S/147/2023-24/1061218326(1) HEREIN MARKED AS ANNEXURE-A1 AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.I.ARUN - 3 - NC: 2024:KHC:47396 WP No. 30364 of 2024 ORAL ORDER 1. The case of the petitioner is that it is exempted from income-tax and is not amenable for taxation. It is further submitted that the notices issued under Section 148A(b) and Section 142(1) of the Income Tax Act, 1961 (for short, hereinafter referred to as the Act) and the order passed under Section 148A(d) of the Act were not served on the petitioner. It is also submitted that no adequate opportunity was provided to file a reply to the notice issued under Section 144 of the Act to the petitioner. It is further submitted that if an opportunity is given to the petitioner, it would show that the impugned notices and orders passed are bad in law. 2. The learned counsel for respondents submit that notices were indeed served on the petitioner, but however, it has remained ex-parte, which resulted in passing of the impugned orders. However, he is not in a position to dispute the fact that the petitioner was placed ex-parte - 4 - NC: 2024:KHC:47396 WP No. 30364 of 2024 and that whether the petitioner is exempted from tax or not is a matter to be examined. 3. Under the given peculiar facts and circumstances of the case, I am of the opinion that it is a fit case to set aside the impugned orders and notices vide Annexures-A1 to A12; Annexures-B2 to B4 and relegate the matter to the stage of reply to the notice at Annexure-B1 and direct the petitioner to file a reply and participate in the proceedings. Hence, the following: ORDER i) The Writ Petition is allowed; ii) The impugned orders and notices passed by Respondent No.1 at Annexures-A1 to A12 and also the impugned orders and notices at Annexure-B2 to B4 issued by Respondent Nos.2 and 3 are set aside; iii) The matter is relegated to the stage of reply to the notice vide Annexure-B1 to the writ petition; - 5 - NC: 2024:KHC:47396 WP No. 30364 of 2024 iv) The petitioner shall reply to the said notice within a period of four weeks from the date of certified copy of this order and shall appear before Respondent No.2 on 24th December, 2024 at 11.00 am. v) All contentions are kept open. Sd/- (M.I.ARUN) JUDGE PHM List No.: 1 Sl No.: 33 CT: BHK "