Mr. Krishnappa Muniraju V. Income Tax Officer Ward 4(1)(3), Bangalore and Assessment Unit Income Tax Department, Ministry of Finance

WP/5558/2024

AI Insights

In this case, the petitioner, Mr. Krishnappa Muniraju, challenged several notices and an assessment order issued by the Income Tax Department under the Income Tax Act, 1961. The primary contention was that the notice under Section 148A(b) was not properly served, and the petitioner was not given a reasonable opportunity to contest the proceedings, which led to a violation of natural justice. The High Court examined the procedural aspects of how the notices were served and whether the petitioner was adequately informed and allowed to respond. The court's decision emphasized the importance of adhering to procedural fairness in administrative actions, particularly in tax assessments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797769 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Income Tax Act; Natural Justice; Quash notice; Section 148A
• Section: 148; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:8018 WP No. 5558 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.5558 OF 2024 (T-IT) BETWEEN: MR KRISHNAPPA MUNIRAJU S/O LATE T KRISHNAPPA AGED ABOUT 60 YEARS, RESIDING AT “GIRIDHARA” NO.22, 3RD CROSS, NEAR SHANIMAHATMA TEMPLE ROAD, DEVASANDRA, KRISHNARAJAPURA POST, BANGALORE-560036 …PETITIONER (BY SRI SYED KHAMRUDDIN, ADVOCATE) AND: 1. INCOME TAX OFFICER WARD 4(1)(3), BANGALORE INCOME TAX DEPARTMENT, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA BENGALURU-560096 2. ASSESSMENT UNIT INCOME TAX DEPARTMENT MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E RAMP JAWARHARLAL NEHRU STADIUM DELHI-110003 …RESPONDENTS (BY SRI M.DILIP, ADVOCATE) Digitally signed by R MANJUNATHA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:8018 WP No. 5558 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE UNDER SECTION 148A(b) OF THE INCOME TAX ACT, DATED 21/03/2022 BEARING DIN & NOTICE No.ITBA/AST/F/148A(SCN)/2021-22/1041170684(1) (ANNEXURE-A) PASSED BY THE R-1, ETC., THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner seeks the following reliefs: WHEREFORE, the petitioner humbly prays that this Court be pleased to: “(i) quash the impugned notice under Section 148A(b) of the Income Tax Act, 1961 (hereinafter referred to as the Act) dated 21.03.2022 bearing DIN & Notice No. ITBA /AST/F/148A(SCN)/2021- 22/1041170684(1) (Annexure-A) passed by the 1st respondent; (ii) quash the impugned Order under Section 148A(d) of the Act dated 31.03.2022 bearing DIN & Notice No. ITBA /AST/F/148A(SCN)/2021- 22/1042297647 (1) (Annexure-B) issued by Respondent No.1; (iii) consequently, quash the impugned notice under Section 148 of the Income Tax Act, 1961 dated 01.04.2022 bearing DIN & Notice No. ITBA/AST/S/148_1/2022-23/1042427225(1) passed by the 1st respondent (Annexure-C); - 3 - NC: 2024:KHC:8018 WP No. 5558 of 2024 (iv) consequently, quash the notice under Section 148 of the Income Tax Act, 1961 dated 06.04.2022 bearing DIN & Notice No. ITBA /AST/S/148_1/2022- 23/1042427225(2) passed by the 1st respondent (Annexure-D); (v) quash the Assessment Order under dated 07.02.2024 bearing DIN & Notice No. ITBA /AST/F/147/2023-24/11060617881(1) passed by the 2nd respondent (Annexure-E) along with Computation Sheet issued by the 2nd respondent (Annexure-E1); (vi) Quash the Notice of Demand dated 07.02.2024 bearing DIN and Notice No.ITBA/AST/S/156/2023- 24/11060617978(1) issued by the 2nd respondent (Annexure-F) by R2.” 2. Heard Sri Syed Khamruddin, advocate for the petitioner and Sri M.Dilip, advocate for respondents. 3. Learned counsel for the petitioner invites my attention to the impugned order dated 31.03.2022 passed under Section 148A(d) of the Income Tax Act, 1961, (‘Act’ for short) to point out that notice said to have been issued by the respondents under Section 148A(b) of the Act had not been actually served on the petitioner and he was not provided sufficient or reasonable opportunity to submit his reply and contest the proceedings and consequently, the impugned order being - 4 - NC: 2024:KHC:8018 WP No. 5558 of 2024 violative of principles of natural justice, deserves to be set- aside and the matter be remitted to the respondents for reconsideration afresh, in accordance with law. 4. Per contra, learned counsel for respondents would support the impugned Order and submits that there is no merit in the petition and same is liable to be dismissed. 5. A perusal of the impugned Order will indicate that except stating that notice under Section 148A(b) of the Act was issued by the respondents, material particulars/details as to how and when said notice was actually served upon the petitioner are conspicuously absent in the impugned Order passed under Section 148A(d) of the Act. 6. It is therefore clear that in the absence of any material to show that sufficient opportunity was provided to the petitioner to submit his reply to Section 148A(b) notice and contest the proceedings, I am of the considered opinion that impugned Order passed by the respondent is violative of principles of natural justice and same deserves to be set-aside and matter deserves to be remitted to the respondents for reconsideration afresh, in accordance with law, from the stage of submitting - 5 - NC: 2024:KHC:8018 WP No. 5558 of 2024 reply to the Section 148A(b) notice and to proceed further in accordance with law. 7. In the result, the following: ORDER (i) Petition is hereby allowed. (ii) The impugned Orders at Annexures-B, C, D, E, E1 and consequential notices are hereby quashed. (iii) The matter is remitted to the respondents for reconsideration afresh from the stage of issuance of reply to Section 148A(b) notice dated 21.03.2022 issued by first respondent and proceed further, in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit his reply/response to Section 148A(b) notice along with documents to the respondent No.1 who shall consider the same and provide sufficient and reasonable opportunity to the petitioner, hear him and proceed further in accordance with law. Sd/- JUDGE kcm List No.: 1 Sl No.: 37 "