Karnataka Education Society V. Assessment Unit, Income Tax Department, National Faceless Assessment Centre, Ministry of Finance and The Income Tax Officer, Ward -6 (2)(1), Bengaluru and The Principal Commissioner of Income Tax-1, Bengaluru

WP/21328/2024

AI Insights

The case involves the Karnataka Education Society, represented by its secretary, challenging various orders and notices issued by the Income Tax Department under the Income Tax Act, 1961, for the assessment year 2019-20. The petitioner sought to quash the assessment order, computation sheet, demand notice, and several penalty notices, all dated 26.02.2024, along with notices issued under Section 148A(b) of the Act. The petitioner argued that the notices under Section 148A(b) were not received, leading to an inability to respond, which was due to bona fide reasons and unavoidable circumstances. The respondents contested the merits of the petition. The court, considering the petitioner's circumstances and the need for a fair opportunity to respond, decided to set aside the impugned orders and remit the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 692257 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 14-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Societies Registration Act, 1860
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: MADHUSUDHAN
• Keywords: Assessment Order; Computation Sheet; Demand notice; Income Tax; Penalty notice; Section 148; Section 148A; Writ petition
• Section: 147; 148; 144; 274; 270A; 144B; 271AAC(1); 148A(b); 148A(d); 272A(1)(d); 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:32792 WP No. 21328 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 21328 OF 2024 (T-IT) BETWEEN: M/S KARNATAKA EDUCATION SOCIETY., A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860, REPRESENTED BY ITS SECRETARY, SRI. DR. M. MANJUNATH, SON OF SRI. M. MADALINGAIAH, AGED ABOUT 57 YEARS, NO. 92, II MAIN, III BLOCK, III STAGE, BASAVESHWARNAGAR, BANGALORE. …PETITIONER (BY 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, DELHI-110 003. 2. THE INCOME TAX OFFICER, WARD -6 (2)(1), BENGALURU, BMTC BUILDING,80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. …RESPONDENTS (BY SRI.M DILIP.,ADVOCATE) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:32792 WP No. 21328 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASH THE ASSESSMENT ORDER DATED 26.02.2024 PASSED UNDER SECTION 147 R.W.S 144 R.W.S 144B OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2019-20 BY THE RESPONDENT NO.1 BEARING DIN NO. ITBA/AST/S/147/2023-24/1061505349(1) HEREIN MARKED AS ANNEXURE-A1 AND B) QUASH THE COMPUTATION SHEET DATED 26.02.2024 ISSUED FOR THE ASSESSMENT YEAR 2019-20 BY THE RESPONDENT NO.1 BEARING DIN AND DOCUMENT NO. ITBA/AST/S/519/2023-24/1061505541(1) HEREIN MARKED AS ANNEXURE-A2 AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks for the following reliefs:- “a) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 26.02.2024 passed under section 147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961 for the assessment year 2019-20 by the Respondent No.1 bearing DIN No. ITBA/AST/S/147/2023- 24/1061505349(1) herein marked as Annexure-A1. b) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 26.02.2024 issued for the assessment year 2019-20 by the Respondent No.1 bearing DIN and Document No. ITBA/AST/S/519/2023-24/1061505541(1) herein marked as Annexure-A2. c) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 26.02.2024 issued under section 156 of the - 3 - NC: 2024:KHC:32792 WP No. 21328 of 2024 Income Tax Act, 1961 for the assessment year 2019-20 by the Respondent No.1 bearing DIN and Notice No. ITBA/AST/S/156/2023-24/1061505437(1) herein marked as Annexure-A3. d) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 26.02.2024 issued under section 274 r.w.s 270A of the Income Tax Act, 1961 for the assessment year 2019- 20 by the Respondent No.1 bearing DIN and Notice No. ITBA/PNL/S/270A/2023-24/1061505619(1) herein marked as Annexure-A4. e) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 26.02.2024 issued under section 274 r.w.s 271aac(1) of the Income Tax Act, 1961 for the assessment year 2019-20 by the Respondent No.1 bearing DIN and Notice No. ITBA/PLN/S/271AAC(1)/2023-24/1061505620(1) herein marked as Annexure-A5. f) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 26.02.2024 issued under section 274 r.w.s 272A(1)(D) of the Income Tax Act, 1961 for the assessment year 2019- 20 by the Respondent No.1 bearing DIN and Notice No. ITBA/PLN/S/272A(1)(D)-FL/2023-24/1061326393(1) herein marked as annexure-a6. g) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice dated 31.01.23 issued under section 148A(B) of the Income Tax Act, 1961 act by the Respondent No.2 for the - 4 - NC: 2024:KHC:32792 WP No. 21328 of 2024 assessment year 2019-20 bearing DIN and Notice No. ITBA/AST/F/148A(SCN)/2022-23/1049292688(1) herein marked as Annexure-B1. h) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice dated 02.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961 by the Respondent No.2 for the assessment year 2019-20 bearing DIN and Notice No. ITBA/AST/F/148A/2022-23/1050322414(1) herein marked as Annexure- B2, i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the order dated 13.03.23 passed under section 148A(D) of the Income Tax Act, 1961 act by the Respondent No.2 for the assessment year 2019-20 bearing DIN and Notice No. ITBA/AST/F/148A/2022-23/1050663384(1) herein marked as Annexure- B3. j) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice dated 15.03.2023 issued under section 148 of the act by the Respondent No.2 for the assessment year 2019-20 bearing DIN and Notice No. ITBA/AST/S/148-1/2022- 23/1050782903(1) herein marked as Annexure- B4. k) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. - 5 - NC: 2024:KHC:32792 WP No. 21328 of 2024 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 notices issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 31.01.2023 and 02.03.2023 respectively were 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 notices. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to Section 148A(b) notices 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. - 6 - NC: 2024:KHC:32792 WP No. 21328 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) notices. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit reply along with documents to Section 148A(b) notices 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-B3 dated 13.03.2023 passed under Section 148A(d) of the IT Act and subsequent notices / 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) Petition is hereby allowed. (ii) The impugned orders / notices at Annexures A1, A2, A3, A4, A5, A6, B3 and B4 are hereby set aside. - 7 - NC: 2024:KHC:32792 WP No. 21328 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 Notices under Section 148A(b) of the IT Act at Annexures-B1 and B2 dated 31.01.2023 and 02.03.2023 respectively. (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 BMC/SRL "