Mr. N Srinivasa, Son of Late Narayana Setty V. Deputy Commissioner of Income Tax, Central Circle - 1 (3), Bengaluru and Principal Commissioner of Income Tax, Income Tax Department, Bengaluru and National Faceless Assessment Centre

WP/23679/2024

AI Insights

In this case, the petitioner, Mr. N Srinivasa, challenged several notices and orders issued by the Income Tax Department under various sections of the Income Tax Act, 1961, including notices under Section 148A(b) and Section 148A(d). The petitioner contended 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 subsequent orders and notices against him. The court considered the petitioner's claim of bonafide reasons for his non-compliance and decided to set aside all impugned orders and notices, remitting the matter back for fresh consideration from the stage of the initial notice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 795253 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 30-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: ALOKE MADAPPA
• Keywords: Assessment Order; Income Tax; Notice Quash; Penalty notice; Writ petition
• Section: 148; 148A(b); 148A(d); 226

Judgement Text

" - 1 - NC: 2024:KHC:35077 WP No. 23679 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 23679 OF 2024 (T-IT) BETWEEN: MR. N SRINIVASA, SON OF LATE NARAYANA SETTY, AGED ABOUT 64 YEARS, RESIDING AT NO 296, 16TH CROSS, SADASHIVANAGAR, BENGALURU – 560 080. …PETITIONER (BY SRI. ALOKE MADAPPA.,ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 1 (3), BENGALURU , 3RD FLOOR, C.R. BUILDING, QUEENS ROAD, BENGALURU - 560 001. 2. PRINCIPAL COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT, 3RD FLOOR, C R BUILDING, QUEENS ROAD, BENGALURU - 560 001. 3. NATIONAL FACELESS ASSESSMENT CENTRE 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, JAWARHARLAL NEHRU STADIUM, DELHI – 110 003. …RESPONDENTS (BY SRI.M DILIP., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(b) DATED 07.02.2023 BEARING ITBA/AST/F/148A(SCN)/2022-23/1049516047(1) ISSUED BY THE R-1 (ANNEXURE-A) AND QUASH THE ORDER UNDER SECTION 148A(d) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:35077 WP No. 23679 of 2024 DATED 11.03.2023 BEARING ITBA/AST/F/148A/2022-23/1050637190(1) AND CONSEQUENT, NOTICE UNDER SECTION 148 DATED 11.03.2023 ITBA/AST/S/148-1/2022-23/1050638619(1) ISSUED BY THE R-1 (ANNEXURE-B AND B1) AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks for the following reliefs:- “i. Quash the Notice under Section 148A(b) dated 07.02.2023 bearing ITBA/AST/F/148A(SCN)/2022-23/1049516047(1) issued by the 1st Respondent (ANNEXURE-A); ii. Quash the Order under Section 148A(d) dated 11.03.2023 bearing ITBA/AST/F/148A/2022-23/1050637190(1) and consequent, Notice under Section 148 dated 11.03.2023 ITBA/AST/S/148-1/2022-23/1050638619(1) issued by the 1st Respondent (ANNEXURE-B and B1) and etc., iii. Quash the Show Cause Notice dated 24.03.2024 bearing No. ITBA/AST/F/147(SCN)/2023-24/1063312067(1) issued by the 1st Respondent (ANNEXURE-C). iv. Quash the Ex-parte Assessment Order dated 30.03.2024 bearing No. ITBA/AST/S/147/2023-24/1063686939(1) along with Computation Sheet dated 30.03.2024 bearing No. ITBA/AST/S/319/2023-24/1063687044(1) and the Demand Notice dated 30.03.2024 bearing No. ITBA/AST/S/156/2023- 24/1063687070(1) issued by the 1st Respondent (ANNEXURE- D, D1 and D2). - 3 - NC: 2024:KHC:35077 WP No. 23679 of 2024 v. Quash the Notice for Penalty under Section 274 read with Section 270A of I.T. Act dated 30.03.2024 bearing No. ITBA/PNL/S/270A/2023-24/1063687048(1) issued by the 1st Respondent (ANNEXURE-E). vi. Quash the Notice for Penalty under Section 272A(1)(d) of I.T. Act dated 19.07.2024 bearing No. ITBA/COM/F/17/2024- 25/1066837415(1) issued by the 1st Respondent (ANNEXURE- F). vii. Pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” 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 petition and referring to the material on record, learned counsel for the petitioner submits that the notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘I.T Act’), dated 07.02.2023 was not received by petitioner and he was not aware of the notice and consequently, the petitioner could not submit his 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 - 4 - NC: 2024:KHC:35077 WP No. 23679 of 2024 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. 3.1 Learned counsel for the petitioner submits that though the petitioner had challenged the final assessment order at Annexure-D dated 30.03.2024 by way of filing an appeal, if this Court were to set aside the impugned assessment order at Annexure-B dated 11.03.2023 passed under Section 148A(d) of the I.T.Act and all further notices, etc., the petitioner would unconditionally withdraw the appeal filed by him before the Appellate authority. 4. Per contra, learned counsel for the respondents- revenue 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 the 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 - 5 - NC: 2024:KHC:35077 WP No. 23679 of 2024 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 11.03.2023 passed under Section 148A(d) of the I.T Act and subsequent notices / orders, etc., and remit the matter back to the 1st respondent 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 he would unconditionally withdraw the appeal filed by him which is pending before the 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-B dated 11.03.2023; impugned notice at Annexure-B1 dated 11.03.2023; the impugned - 6 - NC: 2024:KHC:35077 WP No. 23679 of 2024 show cause notice at Annexure-C dated 24.03.2024; impugned Ex- parte assessment order at Annexure-D dated 30.03.2024; impugned computation sheet at Annexure-D1; impugned Demand notice at Annexure-D2 dated 30.03.2024; impugned penalty notice at Annexure-E dated 30.03.2024 and impugned penalty notice at Annexure-F dated 19.07.2024. are hereby set aside. (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 – A dated 07.02.2023. (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. "