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/21678/2024

AI Insights

The case involves M/s Karnataka Education Society, represented by its secretary, challenging various orders and notices issued by the Income Tax Department under different sections of the Income Tax Act, 1961, for the assessment year 2018-19. The petitioner sought to quash the assessment order, computation sheet, demand notice, and several penalty notices, all dated 29.02.2024, along with other notices dated 28.03.2022 and 07.04.2022. The primary contention was the non-receipt of the notice under Section 148A(b), which led to the inability to respond in time. The court, considering the petitioner's circumstances and the need for a fair opportunity to present their case, decided to set aside the impugned orders and remit the matter back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 692217 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 14-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: MADHUSUDHAN
• Keywords: Assessment Order; Bonafide reasons; Computation Sheet; Demand notice; Income Tax; Penalty notice; Section 148A; Unavoidable circumstances; Writ petition
• Section: 147; 148; 274; 270A; 144B; 271AAC(1); 148A(b); 148A(d); 272A(1)(d); 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:32793 WP No. 21678 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. 21678 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:32793 WP No. 21678 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 29.02.2024 PASSED UNDER SECTION 147 R.W.S 144B OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2018-19 BY THE RESPONDENT NO.1 BEARING DIN NO. ITBA/AST/S/147/2023-24/1061734342(1) HEREIN MARKED AS ANNEXURE-A1 AND B) QUASH THE COMPUTATION SHEET DATED 29.02.2024 ISSUED FOR THE ASSESSMENT YEAR 2018-19 BY THE RESPONDENT NO.1 BEARING DIN AND DOCUMENT NO. ITBA/AST/S/185/2023-24/1061734446(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, the petitioner seeks the following reliefs: “a) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 29.02.2024 passed under section 147 r.w.s 144B of the Income Tax Act, 1961 for the Assessment Year 2018-19 by the Respondent No.1 bearing DIN No. ITBA/AST/S/147/2023-24/1061734342(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 29.02.2024 issued for the assessment year 2018-19 by the Respondent No.1 bearing DIN and Document No. ITBA/AST/S/185/2023-24/1061734446(1) herein marked as Annexure-A2. - 3 - NC: 2024:KHC:32793 WP No. 21678 of 2024 c) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 29.02.2024 issued under section 156 of the Income Tax Act, 1961 for the assessment year 2018-19 by the Respondent No.1 bearing DIN and Notice No. ITBA/AST/S/156/2023-24/1061734470(1) herein marked as Annexure-A3. d) Issue a writ of certiorari or direction in the nature of a writ of certiorari quash the penalty notice dated 29.02.2024 issued under section 274 r.w.s 270A of the Income Tax Act, 1961 for the assessment year 2018-19 by the Respondent No.1 bearing DIN and Notice No. ITBA/PNL/S/270A/2023-24/1061734567(1) herein marked as Annexure-A4. e) Issue a writ of certiorari or direction in the nature of a writ of certiorari quash the penalty notice dated 29.02.2024 issued under section 274 r.w.s 271AAC(1) of the Income Tax Act, 1961 for the assessment year 2018-19 by the Respondent No.1 bearing DIN and Notice No. ITBA/PLN/S/271AAC(1)/2023-24/1061734568(1) herein marked as Annexure-A5. f) Issue a writ of certiorari or direction in the nature of a writ of certiorari quash the penalty notice dated 29.02.2024 issued under section 274 r.w.s 272A(1)(D) of the Income Tax Act, 1961 for the assessment year 2018-19 by the Respondent No.1 bearing DIN and Notice No. ITBA/PLN/S/272A(1)(D)_FL/2023-24/1061684772(1) herein marked as Annexure-A6. - 4 - NC: 2024:KHC:32793 WP No. 21678 of 2024 g) Issue a writ of certiorari or direction in the nature of a writ of certiorari quash the notice dated 28.03.2022 issued under section 148A(B) of the Income Tax Act, 1961 act by the Respondent No.2 for the assessment year 2018-19 bearing DIN and Notice No. ITBA/AST/F/148A(SCN)/2021- 22/1041784294(1) herein marked as Annexure-B1. h) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the order dated 05.04.2022 passed section 148A(D) of the Income Tax Act, 1961 by the Respondent No.2 for the assessment year 2018-19 bearing DIN and Notice No. ITBA/AST/F/148A/2022- 23/1042523846(1) herein marked as Annexure- B2. i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice dated 07.04.2022 issued under section 148 of the act by the Respondent No.2 for the assessment year 2018-19 bearing DIN and Notice No. ITBA/AST/S/148-1/2022-23/1042627830(1) herein marked as Annexure- B3. (j) And pass such other orders as this Hon’ble Court deems fir and property 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. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on - 5 - NC: 2024:KHC:32793 WP No. 21678 of 2024 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 28.03.2022 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. 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 - 6 - NC: 2024:KHC:32793 WP No. 21678 of 2024 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-B2 dated 05.04.2022 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) The impugned orders / notices at Annexures A1, A2, A3, A4, A5, A6, B2 and B3 are hereby set aside. (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 - 7 - NC: 2024:KHC:32793 WP No. 21678 of 2024 Section 148A(b) of the IT Act at Annexure-B1 dated 28.03.2022. (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 "