M N Harish S/O M Nagaraj, Prop. Vinayak Motors V. Assessment Unit Income Tax Department, Ministry of Finance, Delhi and Income Tax Officer Ward-1, Shivamogga

WP/24869/2024

AI Insights

The case involves M N Harish, the proprietor of Vinayak Motors, who filed a writ petition against the notices and orders issued by the Income Tax Department for the assessment year 2018-19. The petitioner contended that he did not receive the initial notice under Section 148A(b) of the Income Tax Act, 1961, and thus could not respond or provide necessary documents, leading to subsequent orders and penalties. The court considered the petitioner's claim of not receiving the notice and the reasons for not responding as bona fide and granted an opportunity to rectify the oversight by setting aside the impugned notices and orders and remitting the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 688034 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: RAMA R
• Keywords: Assessment year 2018-19; Ex parte order; Income Tax; Notices quashed; Writ of Certiorari
• Section: 147; 148; 144; 271AAC(1); 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:37526 WP No. 24869 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 24869 OF 2024 (T-IT) BETWEEN: 1. M N HARISH S/O M NAGARAJ, AGED ABOUT 44 YEARS, PROP. VINAYAK MOTORS, NO.3975/16, IST MAIN, IST CROSS, S.S.LAYOUT, DAVANAGERE-577005. …PETITIONER (BY SRI. RAMA MURTHY R., ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, DELHI-110001. 2. INCOME TAX OFFICER WARD-1, TPS, NO.75, 100FT ROAD, GOPAL GOWDA EXTENSION, SHIVAMOGGA-577201. …RESPONDENTS (BY SRI. M.DILIP., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO THE PETITIONER HUMBLY PRAY THIS HONBLE COURT MAY BE PLEASED TO ISSUE A WRIT OF CERTIORARI OR IN THE NATURE OF WRIT OF CERTIORARI QUASH-ING THE NOTICES DATED 21-03-2022 ISSUED U/S 148A(B) OF THE ACT (ANNEXURE-A) (ITBA/AST/F/148A(SCN)/2021-22/1041117173(1)) ISSUED FOR THE ASSESSMENT YEAR 2018-2019 BY THE 2ST RESPONDENT, ETC. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:37526 WP No. 24869 of 2024 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER 1. In this petition, petitioner seeks the following reliefs: “i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notices dated 21.03.2022 issued under Section 148A(b) of the Act (Annexure-A) [ITBA/AST/F/148A (SCN)/2021-22 / 1041117173(1)] issued for the assessment year 2018-19 by the 2nd respondent. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order dated 06.04.2022 made under Section 148A(d) of the Act, for the assessment year 2018-19 (Annexure-B) in DIN No.ITBA/AST/F/148A/2022-23/1042548783(1) by the 2nd respondent. iii). Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice issued under Section 148 of the Act dated 06.04.2022 issued for the assessment year 2018-19 (Annexure-C) [ITBA/AST/S/148_1/2022- 23/1042552703(1)] issued by the 2nd respondent. iv) . Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the ex-parte order of assessment dated 23.10.2023 made under Section 147 read with section 144 of the Act, for the assessment year 2018-19 (Annexure-F) [ITBA/AST/S/147/2023- 24/1057287184(1)] passed by the first respondent. - 3 - NC: 2024:KHC:37526 WP No. 24869 of 2024 v). Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the ex-parte order of penalty dated 06.04.2024 passed under Section 271AAC(1) of the Act, for the assessment year 2018-19 (Annexure-H) []ITBA/PNL/F/271AAC(1)/2024-25/1063882405(1)] passed by the 1st respondent. 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 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 21.03.2022 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 - 4 - NC: 2024:KHC:37526 WP No. 24869 of 2024 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 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-B dated 06.04.2022 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. - 5 - NC: 2024:KHC:37526 WP No. 24869 of 2024 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures A, B, C, F and H 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 Section 148A(b) of the IT Act at Annexure-A dated 21.03.2022. (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 HNM, List No.: 2 Sl No.: 17 "