Mother Theresa Education Society represented by its Secretary Sri M Srikrishna V. The Income Tax Officer Ward 1 and Assessment Unit Income Tax Department Ministry of Finance

WP/21992/2024

AI Insights

The case involves the Mother Theresa Education Society, represented by its Secretary, who filed a writ petition against the Income Tax Officer and the Assessment Unit of the Income Tax Department, Ministry of Finance. The petitioner sought to quash various notices and orders issued for the assessment year 2019-2020 under different sections of the Income Tax Act, 1961. The primary contention was the non-receipt of the initial notice under Section 148A(b), which led to the inability to respond and submit necessary documents. 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) 795255 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 29-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: DILIP
• Assessee Lawyers: RAMA R
• Keywords: Assessment year 2019-2020; Income Tax; Notice Quashing; Penalty order; Writ of Certiorari
• Section: 147; 148; 144; 144B; 271AAC(1); 148A(b); 148A(d); 272A(1)(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:36053 WP No. 21992 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 21992 OF 2024 (T-IT) BETWEEN: MOTHER THERESA EDUCATION SOCIETY REPRESENTED BY ITS SECRETARY SRI M SRIKRISHNA ANTHARAGANGE ROAD KOLAR 563101 …PETITIONER (BY SRI. RAMA MURTHY R, ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 1 NEW EXTESION KOLAR 563 101. 2. ASSESSMENT UNIT INCOME TAX DEPARTMENT MINSITRY OF FINANCE NEW DELHI 110 001. …RESPONDENTS (BY SRI. DILIP M., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DTD. 04.03.2023 ISSUED U/S 148A(b) OF THE ACT (ANNX-C1) (ITBA/AST/F/148A(SCN)/2022-23/1050402533(1) ISSUED FOR THE ASSESSMENT YEAR 2019-2020 BY THE R-1. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:36053 WP No. 21992 of 2024 CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “A. The Petitioner humbly pray this Hon’ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the Notice dated 04.03.2023 issued 11/s 1488(b) of the Act (Annexure-C-1) ITBA/AST/F/148A(SCN)/2022-23/1050402533(1) issued for the assessment year 2019-2020 by the 1st Respondent, and B. The Petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the order dated 24.03.2023 made u/s 148A(d) of the Act, for the assessment year 2019- 2020 (Annexure-E) [ITBA/AST/F/148A/2022- 23/ 1051225050(1]] passed by the 1 Respondent, and C. The Petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the notice issued u/s.148 of the Act dated 27.03.2024 for the assessment year 2019-2020 (Annexure-F) ITBA/AST/S/148_1/2022- 23/1051234671(1)] issued by the 1 Respondent; and D. The Petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the order passed u/s 147 r.w.s 144 r.w.s 144B of the Act dated 28.12.2023 for the - 3 - NC: 2024:KHC:36053 WP No. 21992 of 2024 assessment year 2019-2020 (Annexure-G [ITBA/AST/S/147/2023-24/1059125646(1)] passed by the 2nd Respondent; and E. The Petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the Penalty Order passed u/s 272A(1)(d) of the Act dated 24.04.2024 for the assessment year 2019-2020 (Annexure-H) [ITBA/PNL/F/272A(1)(d)/ 2024-25/1064313199(1)] passed by the 2nd Respondent; and F. The Petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the Penalty Order passed u/s 271AAC(1) of the Act dated 15.05.2024 for the assessment year 2019-2020 (Annexure-H- [ITBA/PNL/F/271AAC(1) /2024-25/1064885120(1)] passed by the Respondent; and G. This Hon’ble Court may be pleased to issue such other relief or reliefs as this Hon’ble court deems fit , in the interest of justice, in the Petitioner’s case.” 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 - 4 - NC: 2024:KHC:36053 WP No. 21992 of 2024 by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 04.03.2023 at Annexure-C1 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 the petitioner that his inability and omission to submit a reply along - 5 - NC: 2024:KHC:36053 WP No. 21992 of 2024 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-G dated 24.03.2023 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) Impugned notices / orders at Annexures E, F, G, H and H1 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-C1 dated 04.03.2024. - 6 - NC: 2024:KHC:36053 WP No. 21992 of 2024 (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: List No.: 2 Sl No.: 16 "