Mrs. Khisar Jahan, Wife of Late Jameel Ahmed Shariff V. Union of India, through its Secretary, Government of India, Ministry of Finance, Department of Revenue and Principal Chief Commissioner of Income Tax Karnataka and Goa Region and Income Tax Officer Ward-1 and National Faceless Assessment Centre and Assessment Unit, Income Tax Department, Regional Faceless Assessment Centre, Bengaluru and Canara Bank

WP/25147/2024

AI Insights

In this case, Mrs. Khisar Jahan, the petitioner, challenged several orders and notices issued by the Income Tax Department, including assessment orders and demand notices under various sections of the Income Tax Act, 1961. The petitioner contended that she did not receive a crucial notice under Section 148A(b), which led to her inability to respond and submit necessary documents, thereby affecting the subsequent assessments and penalties imposed. The respondents argued that the petition lacked merit. The court, after considering the submissions and the circumstances of non-receipt of the notice, decided to set aside the impugned orders and remit the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800879 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 24-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: RESHMA THAMMAIAH; THIRUMALESH; VIGNESH SHETTY
• Assessee Lawyers: SAMEER GUPTA
• Keywords: Assessment Order; Demand notice; Faceless assessment; Income Tax; Penalty order; Writ petition
• Section: 147; 148; 144; 271(1)(c); 271(1)(b); 148A; 156; 226; 226(3); 227

Judgement Text

" - 1 - NC: 2024:KHC:39506 WP No. 25147 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 25147 OF 2024 (T-IT) BETWEEN: MRS. KHISAR JAHAN, WIFE OF LATE JAMEEL AHMED SHARIFF, AGED ABOUT 56 YEARS, RESIDENT OF BESIDE ESHWAR TEMPLE, MANNAT 2ND CROSS, VIDYANAGAR, HASSAN, KARNATAKA – 573 201. …PETITIONER (BY SRI. SAMEER GUPTA.,ADVOCATE) AND: 1. UNION OF INDIA, THROUGH ITS SECRETARY, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI – 110 001. 2. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA REGION GROUND FLOOR, CR BUILDING NO.1, QUEENS ROAD, BENGALURU – 560 001. 3. INCOME TAX OFFICER WARD -1, AAYAKAR BHAVAN, BELUR ROAD, VIJAYANAGAR 2ND STAGE, HASSAN – 57 320. 4. NATIONAL FACELESS ASSESSMENT CENTRE 2ND FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI – 110 003. 5. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, REGIONAL FACELESS ASSESSMENT CENTRE, BENGALURU – 560 001. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:39506 WP No. 25147 of 2024 6. CANARA BANK, P.O.NO.45, NEAR NARASIMHARAJA CIRCLE, 12, MALNAD HOUSE, HASSAN – 573 201. REPRESENTED BY ITS AUTHORISED SECRETARY. …RESPONDENTS (BY SMT.RESHMA THAMMAIAH., CGC FOR R1; SRI. THIRUMALESH M ., ADVOCATE FOR R2 TO R5; SRI. VIGNESH SHETTY., ADVOCATE FOR R6) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I) QUASHING THE ASSESSMENT ORDER BEARING DIN ITBA/AST/S/147/2022- 23/1051265421(1) ANNEXURE- A) DATED 24.03.2023 PASSED UNDER SECTION 147 READ WITH SECTION 144 OF THE ACT BY THE RESPONDENT NO.5 AND II) QUASHING THE DEMAND NOTICE DATED 24.03.2023 BEARING DIN ITBA/AST/S/156/2022- 23/1051265442(1) ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT, 1961 ISSUED BY RESPONDENT NO.5 (ANNEXURE-B) AND ETC., THIS WRIT 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 seeks the following reliefs: i) Issue a writ, order or direction in the nature of certiorari quashing the Assessment Order bearing DIN ITBA/AST/S/147/2022-23/1051265421(1) Annexure- A) dated 24.03.2023 passed under Section 147 read with Section 144 of the Act by the Respondent No.5; ii) Issue a writ, order or direction in the nature of certiorari quashing the demand notice dated 24.03.2023 bearing DIN ITBA/AST/S/156/2022- 23/1051265442(1) issued under Section 156 of the Income Tax Act, 1961 issued by Respondent No.5 (Annexure-B) - 3 - NC: 2024:KHC:39506 WP No. 25147 of 2024 iii) Issue a writ, order or direction in the nature of certiorari quashing the order for penalty dated 14.09.2023 bearing DIN ITBA/PNL/F/271(1)(C)/2023-24/1056104813(1) passed by the Respondent No.5 under Section 271(1)(c) of the Income Tax Act, 1961 (Annexure- C) iv) Issue a writ, order or direction in the nature of certiorari quashing the demand notice bearing DIN ITBA/PNL/S/156/2023-24/1056104222(1) dated 14.09.2023 issued by the Respondent No.5 Section 156 of the Income Tax Act, 1961. (Annexure- D); v) Issue a writ, order or direction in the nature of certiorari quashing the penalty order dated 02.09.2023 bearing DIN ITBA/PNL/F/271F/2023- 24/1056527350(1) issued by Respondent No.5 (Annexure-E), vi) Issue a writ, order or direction in the nature of certiorari quashing the Demand Notice dated 02.09.2023 issued under Section 156 of the Act bearing DIN ITBA/PNL/S/156/2023- 24/1056527271(1) by the Respondent No.5 (Annexure-F) vii) Issue a writ, order or direction in the nature of certiorari quashing the order dated 01.09.2023 bearing DIN ITBA/PNL/F/271(1)(B)/2023- 24/1055894812(1) passed by the Respondent No.5 under Section 271(1)(b) of the Income Tax Act, 1961 (Annexure-G); viii) Issue a writ, order or direction in the nature of certiorari quashing the demand notice dated 01.09.2023 bearing DIN ITBA/PNL/S/156/2023- 24/1055894803(1) issued under Section 156 of the Income Tax Act, 1961 by the Respondent No.5 (Annexure-H) ix) Issue a writ, order or direction in the nature of certiorari quashing the notice dated 31.03.2022 issued by the Respondent No.3 bearing DIN ITBA/AST/S/148_1/2021-22/1042275980(1) under - 4 - NC: 2024:KHC:39506 WP No. 25147 of 2024 Section 148 of the Income Tax Act, 1961 (Annexure- J); x) Issue a writ, order or direction in the nature of certiorari quashing the order dated 31.03.2022 bearing DIN ITBA/AST/F/148A/2021- 22/1042275695(1) passed by the Respondent No.3 under Section 148A of the Income Tax Act, 1961 (Annexure-K); xi) Issue a writ, order or direction in the nature of certiorari quashing the notice dated 18.07.2024 bearing ITBA/COM/F/17/2024-25/106814919(1) (Annexure- L) issued under Section 226(3) of the Income Tax Act, 1961 by the Respondent No.3. xii) Issue any other writ, order or direction, which this Hon’ble Court may deem fit and proper under the facts and circumstances of the present case; xiii) Grant costs and interest; and, xiv) Grant such further and other reliefs as the nature and circumstances of the case may require.” 2. Heard learned counsel for the petitioners 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, ‘IT Act’), dated 28.03.2022 was not received by petitioner and he was not aware of the notice and consequently, petitioner could not submit its reply / response along with - 5 - NC: 2024:KHC:39506 WP No. 25147 of 2024 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 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 - 6 - NC: 2024:KHC:39506 WP No. 25147 of 2024 the impugned order at Annexure-K dated 31.03.2022 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, C, D, E, F, G, H, J, K and L 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-N dated 20.03.2022. (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 - 7 - NC: 2024:KHC:39506 WP No. 25147 of 2024 reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 25 "