MUKHATAR AHMED ABDUL GANI JAVALI V. INCOME TAX OFFICER AND ORS

WP/202356/2024

AI Insights

The case involves Mr. Mukhtar Ahmed Abdul Gani Javali, the petitioner, who challenged several notices and orders issued by the Income Tax Department under various sections of the Income Tax Act, 1961. The petitioner argued that he did not receive the initial notice under Section 148A(b), which led to his inability to respond and submit necessary documents, resulting in ex-parte orders and subsequent notices. The respondents contested the petition, asserting that it lacked merit. The court, after hearing both parties, decided to set aside the impugned notices and orders, remanding the case back to the first respondent for a fresh assessment from the point of the initial notice under Section 148A(b).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747255 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-11-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: TIRUMALESH
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Assessment Order; Ex parte order; Income Tax; Notice Quash; Penalty notice; Writ petition
• Section: 148; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC-K:8651 WP No. 202356 of 2024 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 20TH DAY OF NOVEMBER, 2024 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 202356 OF 2024 (T-IT) BETWEEN: MR. MUKHATAR AHMED ABDUL GANI JAVALI SON OF MR ABDUL GANI JAVALI AGED ABOUT 49 YEARS, RESIDING AT NO. 12/1, A2, FIRST FLOOR M.N RESIDENCY STANDAGE ROAD, FRAZER TOWN BENGALURU-560005, NOW AT ATHANI ROAD, BIJAPUR-586101 …PETITIONER (BY SRI. SYED KHAMRUDDIN, ADVOCATE) AND: 1. INCOME TAX OFFICER, WARD 1 AND TPS GULBLARGA, AAYAKAR BHAWAN SEDAM ROAD, KALABURAGI-585105. 2. ASSESSMENT UNIT REPRESENTED BY ADDITIONAL JOINT/ DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWARHALAL NEHRU STADIUM, DELHI-110003. 3. NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED BY ADDITIONAL JOINT/ DEPUTY/ Digitally signed by SUMITRA SHERIGAR Location: High Court Of Karnataka - 2 - NC: 2024:KHC-K:8651 WP No. 202356 of 2024 ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWARHALAL NEHRU STADIUM, DELHI-110003. …RESPONDENTS (SRI. TIRUMALESH M., ADV. FOR R1 TO R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, BY THE ADVOCATE FOR PETITIONER PRAYING THAT THIS HONOURABLE COURT MAY BE PLEASED TO (i) QUASH THE NOTICE UNDER SECTION 148A(b) OF THE I.T ACT DATED 08.02.2023 BEARING NO. ITBA/AST/F/148A(SCN)/2022- 23/1049521673(1) ISSUE BY THE 1ST RESPONDENT (ANNEXURE-A). THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER (PER: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR) 1. In this petition, petitioner seeks the following reliefs: (i) Quash the notice under section 148A(b) of the I.T Act dated 08.02.2023 bearing No. ITBA/AST/F/148A(SCN)/2022-23/1049521673(1) issue by the 1st respondent (Annexure-A); (ii) Quash the ex-parte order under section 148A(d) of the I.T Act dated 24.03.2023 bearing No. - 3 - NC: 2024:KHC-K:8651 WP No. 202356 of 2024 ITBA/AST/F/148A/2022-23/1051211701(1) issued by the 1st respondent (Annexure-B) and consequent notice under section 148 dated 24.03.2023 bearing No. ITBA/AST/S/148-1/2022-23/1051211852(1) issued by the 1st respondent (Annexure-B1; (iii) Quash the ex-parte assessment order dated 02.02.2024 bearing No. ITBA/AST/S/147/2023- 24/1060450542(1) (annexure-c) along with computation sheet bearing No. ITBA /AST/5/319/2023- 24/1060450648(1) (Annexure-C1) and the demand notice dated 02.02.2024 bearing No. ITBA/AST/S/156/2023- 24/1060450683(1) (Annexure-C2) by the 2nd respondent. (iv) Quash the notice for penalty under section 274 read with section 271aac(1) dated 02.02.2024 bearing ITBA/PNL/S/271A (1) (d)-fl/2023-24/1060450701(1) (annexure-c) issued by the 2nd 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) - 4 - NC: 2024:KHC-K:8651 WP No. 202356 of 2024 of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 08.02.2023 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 - 5 - NC: 2024:KHC-K:8651 WP No. 202356 of 2024 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 – A dated 08.02.2023 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-A, B, B1, C, C1, C2 and D 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 - 6 - NC: 2024:KHC-K:8651 WP No. 202356 of 2024 Notice under Section 148A(b) of the IT Act at Annexure-A, dated 08.02.2023. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SVH List No.: 1 Sl No.: 69 "