Megumi Sakakida V. Income Tax Officer Ward-7(2)(3), Bengaluru and Principal Commissioner of Income-Tax, Bengaluru-1 and The Assessment Unit and National Faceless Assessment Centre

WP/22511/2024

AI Insights

In this case, Megumi Sakakida, the petitioner, challenged several notices and orders issued by the income tax authorities under the Income-tax Act, 1961, for the assessment year 2018-19. The petitioner contended that she did not receive the initial notice under Section 148A(b), which led to her inability to respond and provide necessary documents. The High Court, considering the petitioner's circumstances and her willingness to comply if given another opportunity, decided to set aside the impugned orders and notices and remand the case for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 804910 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-08-2024
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: HEGDE SHANKAR PURANDER
• Keywords: Assessment year 2018-19; Income Tax; Income Tax Officer; National Faceless Assessment Centre; Notice Quashing; Principal commissioner of income tax; Writ of Certiorari
• Section: 148; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:33915 WP No. 22511 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 22511 OF 2024 (T-IT) BETWEEN: MEGUMI SAKAKIDA D/O TAKAYUKI SAKAKIDA AGE 38 YEARS R/O NO. 60/1, MIYAJIMA HOUSE, 3RD FLOOR, 2ND CROSS, RESIDENCY ROAD, BANGALORE - 560 025, …PETITIONER (BY SRI. HEGDE SHANKAR PURANDER.,ADVOCATE) AND: 1. INCOME TAX OFFICER WARD-7(2)(3), BENGALURU THE JURISDICTIONAL ASSESSING OFFICER UNDER THE INCOME-TAX ACT, 1961. BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. 2. PRINCIPAL COMMISSIONER OF INCOME-TAX, BENGALURU-1, BENGALURU. INCOME-TAX AUTHORITY U/S 116 OF INCOME-TAX ACT, 1961. BMTC BUILDING, 10 FEET ROAD, 6TH BLOCK, NEAR KIB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. 3. THE ASSESSMENT UNIT A UNIT CREATED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961 ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003, RE, BY PR. CHIEF COMMISSIONER OF INCOME-TAX (NEAC). Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:33915 WP No. 22511 of 2024 4. NATIONAL FACELESS ASSESSMENT CENTRE A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME-TAX ACT, 1961 ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI -110 003. …RESPONDENTS (BY SRI.M. DILIP.,ADVOCATE) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(b) OF THE INCOME TAX ACT, DATED 25/03/2022 ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2018-19 WHICH BEARS THE DIN VIZ. ITBA/AST/F/148A(SCN)/2021-22/1041505952(1), WHICH IS ENCLOSED AS ANNX-A1 AND ETC. 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 In this petition, petitioner has sought for the following reliefs:- “a) Issue a writ of Certiorari or direction in the nature of writ or Certiorari quashing the notice under Section 148A(b) of the Income-tax Act, dated: 25.03.2022 issued by the Respondent no.1 for the Assessment Year 2018-19 which bears the DIN Viz. ITBA/AST/F/148A(SCN)/2021- 22/1041505952(1), which is enclosed as Annexure A.1; b) Issue a writ of Certiorari or direction in the nature of writ or Certiorari quashing the order under Section 148A(d) of the Income-tax Act, dated: 09.04.2022 issued by the Respondent no.1 for the Assessment Year 2018-19 which bears the DIN viz. ITBA/AST/F/148A/2022- 23/1042677750(1), enclosed as Annexure A.2 which is enclosed as Annexure-A.2; - 3 - NC: 2024:KHC:33915 WP No. 22511 of 2024 C) Issue a writ of Certiorari or direction in the nature of we Certiorari quashing the notice under Section 1:48 of Income-tax Act, dated: 09.04.2022 issued by the Respondent no.1 for the Assessment Year 2018-19 which bears the DIN Viz. ITBA/AST/5/148 1/2022- 23/1042677762(1), which enclosed as Annexure A.3; d) Issue a writ of Certiorari or direction in the nature of writ of Certiorari quashing the assessment order under Section 14) r.w.s 144 r.w.s 1448 of the Income-tax Act, dated 05.03.2024 issued by the Respondent no 3 for the Assessment Year 2018-19 which bears the DIN viz ITBA/AST/S/147/2023-24/1062054954(1), which is encloses as Annexure A.5; e) Issue a writ of Certiorari or direction in the nature of writ of Certiorari quashing the notice of demand under Section 155 of the Income-tax Act, dated: 05.03.2024 issued by the Respondent no. 3. for the Assessment Year 2018-19 which bears the DIN viz. ITBA/AST/S/156/2023- 24/1062055065(1) which is enclosed as Annexure A.6; f) Issue a writ of Certiorari or direction in the nature of writ or Certiorari quashing the computation sheet, dated: 05.03.2024 issued by the Respondent no. 3 for the Assessment Year 2018-19 which bears the DIN viz. ITBA/AST/S/183/2023 24/1062055135(1), which is enclosed as Annexure A.5; g) Issue a writ of Certiorari or direction in the nature of writ of Certiorari quashing the order bearing DIN:ITBA/COM/F/17/2024-25/1066907083(1), dated: 23.07.2024 of the Commissioner, Income Tax Appeals [Respondent No.2] directing the Petitioner to pay 5% of the - 4 - NC: 2024:KHC:33915 WP No. 22511 of 2024 demand on monthly installment which is enclosed herewith as Annexure-B; h) Pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity including awarding of cost of this petition. 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, ‘I.T Act’), dated 25.03.2022 was not received by petitioner and she was not aware of the notice and consequently, petitioner could not submit her 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 - 5 - NC: 2024:KHC:33915 WP No. 22511 of 2024 petitioner would do so and respondents may be directed to proceed further in accordance with law. 3.1 Learned counsel for the petitioner submits that thought the petitioner had challenged the final assessment order at Annexure-A5 dated 05.03.2024 by way of filing an appeal, if this Court were to set aside the impugned assessment order dated 09.04.2022 passed under Section 148A(d) of the I.T.Act and all further notices, etc., the petitioner would unconditionally withdraw the appeal filed by her before the Appellate authority. 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 her 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 - 6 - NC: 2024:KHC:33915 WP No. 22511 of 2024 along with documents, I deem it just and appropriate to set aside the impugned order at Annexure – A2 dated 09.04.2022 passed under Section 148A(d) of the I.T 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. Further, the submission made on behalf of the petitioner that she would unconditionally withdraw the appeal filed by her which is pending before the 2nd respondent – Appellate authority as expeditiously as possible is placed on record. 7. In the result, pass the following: ORDER (i) Petition is hereby allowed. (ii) The impugned order at Annexure-A2 dated 09.04.2022, impugned notice at Annexure-A3 dated 09.04.2022, the impugned assessment order at Annexure-A5 dated 05.03.2024 and the impugned demand notice at Annexure-A6 dated 05.03.2024 are hereby set aside. - 7 - NC: 2024:KHC:33915 WP No. 22511 of 2024 (iii) The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting reply to the Show Cause Notice issued under Section 148A(b) of the I.T Act at Annexure – A1 dated 25.03.2022. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the 1st respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Srl. "