Mysore Paper Mills Education Society V. The Assessment Unit, Income Tax Department, National Faceless Assessment Centre, Delhi and The Income-Tax Officer, Ward 1 & TPS I T Office, Shivamogga

WP/17548/2024

AI Insights

The case involves M/s Mysore Paper Mills Education Society, which filed a writ petition against the notices and orders issued by the Income Tax Department under various sections of the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner challenged the notices and orders on the grounds that they were not aware of the initial notice under Section 148A(b) due to bona fide reasons, which prevented them from responding in time. The court, after hearing the arguments, decided to set aside the impugned orders and notices and remand the matter back for fresh consideration, allowing the petitioner another opportunity to respond.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 816173 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: JINITA CHATTERJEE
• Keywords: Assessment Year 2016-17; Income Tax; Notice Quashing; Penalty Quashing; Writ of Certiorari; Writ of Mandamus; Writ of prohibition
• Section: 147; 271(1)(c); 271(1)(b); 271F; 144B; 148A(b); 148A(d); 226; 227

Judgement Text

"- 1 - NC: 2024:KHC:31189 WP No. 17548 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 17548 OF 2024 (T-IT) BETWEEN: M/S MYSORE PAPER MILLS EDUCATION SOCIETY PAPER TOWN, BHADRAVATHI, SHIVAMOGGA - 577 302. NATURE OF BUSINESS: SOCIETY FOR PROMOTION OF EDUCATION IN SCHOOLS & COLLEGES, REPRESENTED BY ITS PRESIDENT SRI. G S SRINIVAS, AGED ABOUT 63 YEARS, SON OF SRI SANNA THIMMAPPA, SOCIETY REGISTRATION NO 44/87-88. …PETITIONER (BY SMT. JINITA CHATTERJEE., ADVOCATE FOR SRI. S PARTHA SARATHI., ADVOCATE) AND: 1. THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI - 110 001. 2. THE INCOME-TAX OFFICER, WARD 1 & TPS I T OFFICE, NO.75, 100FT ROAD, GOPAL GOWDA EXTEN, SHIVAMOGGA – 577 201. …RESPONDENTS (BY SRI.M DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226/227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASHING THE Digitally signed by Vandana S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:31189 WP No. 17548 of 2024 NOTICE ISSUED UNDER SECTION 148A(B) OF THE ACT DTD 15.02.23 IN FILE NO. ITBA/AST/F/148A(SCN)/22-23/1049792236(1) BY THE R2 FOR THE ASSESSMENT YEAR 2016-17 (ANNEXURE-A) AND B) QUASHING THE ORDER UNDER SEC 148A(D) OF THE ACT DT.21.03.2023 IN FILE NO.ITBA/AST/F/148A/2022-23/1051034096(1) PASSED BY THE SECOND RESPONDENT FOR THE ASSESSMENT YEAR 2016-17 ANNEXURE-C 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, the petitioner seeks the following reliefs: “ a) issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the notice issued under section 148A(b) of the Act dated 15.02.2023 in File No.ITBA/AST/F/148A(SCN)/2022-23/1049792236(1) by the 2nd Respondent for the Assessment year 2016-17 (Annexure-A). b) issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the order issued under section 148A(d) of the Act dated 21.03.2023 in File No.ITBA/AST/F/148A/2022-23/1051034096(1) passed by by the 2nd Respondent for the Assessment year 2016-17 (Annexure-C). c) issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the notice issued under section 148A of the Act dated 21.3.2023 in File No.ITBA/AST/F/148_1/2022-23/1051036287(1) by the 2nd Respondent for the Assessment year 2016-17 (Annexure- B) - 3 - NC: 2024:KHC:31189 WP No. 17548 of 2024 d) Issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the assessment order passed under sec 147 rws 144B along with the demand notice dt: 15.03.2024 in the File ITBA/AST/S/147/2023- 24/1062699380(1) by there First Respondent for the assessment year 20196-17 (ANNEXURE-‘H’,); e) Issue a writ of Certiorari or direction in the nature of Writ of Certiorari quashing the Penalty notice issued under sec 271(1) (b) dt: 1.5.2024 in file No.ITBA/PNL/F/271(1) (b)/2024-25/1064543942(1) for the assessment year 2016-17 by the First Respondent (ANNEXURE-‘J’) f) Issue a writ of Certiorari or direction in the nature of Writ of Certiorari quashing the Penalty notice issued under sec 271(1) (c) dt: 1.5.2024 in file No.ITBA/PNL/F/271(1) (c)/2024-25/1064550061 (1) for the assessment year 2016-17 by the First Respondent (ANNEXURE-‘J1’) g) Issue a writ of Certiorari or direction in the nature of Writ of Certiorari quashing the Penalty notice issued under sec 271F dt: 30.04.2024 in file No.ITBA/PNL/F/271F/2024-25/1064463366(1) for the assessment year 2016-17 by the First Respondent (ANNEXURE-‘J2’) h) Issue a Writ of Prohibition or a direction in the nature of Writ of Prohibition restraining the First Respondent from recovering the impugned demand realised vide assessment order passed under sec 147 rws 144B along with demand notice dt: 15.03.2024 in the ITBA/AST/S/147/2023- - 4 - NC: 2024:KHC:31189 WP No. 17548 of 2024 24/106269980(1) for the assessment year 2016- 17(ANNEXURE-‘H’,); i) Issue a writ of Prohibition or a direction in the nature of Writ of Prohibition restraining the First Respondent not to proceed with penalty proceedings initiated under Sec 271(1) (b) of the Act dt: 1.5.2024 in the File No. ITBA/PNL/F/271(1)(b)/2024-25/1064543942(1), (ANNEXURE-‘J’); j) Issue a writ of Prohibition or a direction in the nature of Writ of Prohibition restraining the First Respondent not to proceed with penalty proceedings initiated under Sec 271(1) (C) of the Act dt: 1.5.2024 in the File No. ITBA/PNL/F/271(1)(C)/2024-25/1064550061(1) (ANNEXURE-‘J1’); k) Issue a Writ of Prohibition or a direction in the nature of Writ of Prohibition restring the First Respondent not to proceed with the penalty proceedings initiated under sec 271F of the Act dt: 30.04.2024 in file No. ITBA/PNL/F/271F/2024-25/1064463366(1) (ANNEXXURE- ‘J2’); l) Issue a Writ of Mandamus or a direction in the nature of Writ of Mandamus directing the First Respondent to provide the order of reference to the Pr. Chief CIT and the order of approval granted for rebuttal and thereafter to pass the appropriate order under Sec 148A(d) and thereafter to issue notice under sec 148 and to continue the reassement proceedings after giving adequate opportunity for physical appearance before the First Respondent before passing the assessment order. - 5 - NC: 2024:KHC:31189 WP No. 17548 of 2024 m) Pass such other order, direction or writ as this Hon’ble court deems fit, and n) direct the Respondent to award the costs of this Writ Petition. “ 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) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 15.02.2023 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. - 6 - NC: 2024:KHC:31189 WP No. 17548 of 2024 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 the impugned order at Annexure – C dated 21.03.2023 passed under Section 148A(d) of the IT Act and subsequent notice / orders, etc., and remit the matter back to the concerned respondents 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. - 7 - NC: 2024:KHC:31189 WP No. 17548 of 2024 (ii) Impugned notices / orders at Annexures - C, B, H, J, J1 and J2 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-A dated 15.02.2023. (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.: 1 Sl No.: 42 "