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

WP/29433/2024

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 2018-19. 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, leading to the setting aside of the orders and notices, and remanding the case for further proceedings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 798247 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-11-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ; M DILIP
• Assessee Lawyers: A SHANKAR
• Keywords: Ex parte order; Income tax exemption; Service of notice; Non-amenable to Taxation; Opportunity to Reply
• Section: 147; 144; 142(1); 144B; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:45826 WP No. 29433 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF NOVEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO. 29433 OF 2024 (T-IT) BETWEEN: KARNATAKA ADVOCATES WELFARE FUND TRUSTEE COMMITTEE, (CONSTITUTED UNDER SECTION 3 OF THE KARNATAKA 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 K.G.I.D. BUILDING, DR. AMBEDKAR VEEDHI ROAD, BANGALORE - 560 001. …PETITIONER (BY SRI. A. SHANKAR, SENIOR ADVOCATE FOR SRI. MADHUSUDHAN U.A., ADVOCATE) AND: 1. ASSESSMENT UNIT/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, 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. Digitally signed by CHAITHANYA K Location: High Court of Karnataka - 2 - NC: 2024:KHC:45826 WP No. 29433 of 2024 3. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KARNATAKA AND GOA, CENTRAL REVENUE BUILDING, QUEENS ROAD, BANGALORE - 560 001. …RESPONDENTS (BY SRI. Y.V. RAVIRAJ AND SRI. M. DILIP, ADVOCATES) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH THE ASSESSMENT ORDER DATED 30.03.2023 PASSED UNDER SECTION 147 R.W.S 144 R.W.S 144B OF THE ACT FOR THE ASSESSMENT YEAR 2018-19 BY THE RESPONDENT NO.1 BEARING DIN NO. ITBA/AST/S/147/2022-23/1051689758(1) HEREIN MARKED AS ANNEXURE-A1 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.I.ARUN ORAL ORDER 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 - 3 - NC: 2024:KHC:45826 WP No. 29433 of 2024 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 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 vice Annexures-A1 to A12; Annexures-B2 and B3 and Annexure-C and relegate the matter to the stage of reply - 4 - NC: 2024:KHC:45826 WP No. 29433 of 2024 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 order at Annexure-B2 and the notice at Annexure-B3 issued by Respondent No.2 are set aside; iii) The matter is relegated to the stage of reply to the notice vide Annexure-B1 to the writ petition; 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. Sd/- (M.I.ARUN) JUDGE DH List No.: 1 Sl No.: 5 CT:SNN "