Nazeebur Rehaman S/O Mohammed Saheb V. Additional/Joint/Deputy/Assistant Commissioner of Income Tax, Income Tax Officer, National Faceless Assessment Centre, Delhi

WP/23223/2022

AI Insights

The case involves a writ petition filed by Nazeebur Rehaman against the Additional/Joint/Deputy/Assistant Commissioner of Income Tax, challenging a penalty order under Section 270A of the Income Tax Act, 1961. The petitioner argued that he was unable to respond to the notice due to his accountant's failure to inform him about the proceedings, which constituted a bona fide and unavoidable circumstance. The respondent contested the merits of the petition. The court, without delving into the merits of the case, decided to set aside the penalty and remit the matter back for fresh consideration, emphasizing a justice-oriented approach and providing the petitioner another opportunity to present his case.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 687649 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-12-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI; M DILIP
• Assessee Lawyers: R CHANDRASHEKAR
• Keywords: Bona fide; Faceless assessment; Income Tax; Penalty; Reconsideration; Writ of Certiorari
• Section: 274; 270A; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF DECEMBER, 2022 BEFORE THE HON’BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.23223/2022 (T-IT) BETWEEN: NAZEEBUR REHAMAN S/O MOHAMMED SAHEB, AGED ABOUT 48 YEARS, NO.93, GAVATURU, HOSANAGAR, SHIVAMOGGA-577201. ...PETITIONER (BY SRI. R. CHANDRASHEKAR, ADV.,) AND: ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-110001. …RESPONDENT (BY SRI. E.I.SANMATHI AND SRI. M. DILIP, ADVS.,) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER OF PENALTY UNDER SECTION 270A OF THE ACT DATED 06.01.2022 IN NO.ITBA/PNL/F/270A/2021-22/1038508454(1) (ANNEXURE-C). THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: ORDER 1. In this writ petition, petitioner has sought for the following reliefs: 2 “i) The petitioner humbly pray that this Hon’ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the order of penalty under Section 270A of the Act dated 06.01.2022 in No.ITBA/PNL/F/270A/2021-22/1038508454(1) (Annexure-C) to this Writ Petition in the interest of justice; ii) This Hon’ble Court may be pleased to issue such other Writ or Writs as this Hon’ble Court deem it fit in the Petitioner’s case in the interest of justice.” 2. Heard learned counsel for the petitioner and learned counsel for the respondent 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 the petitioner could not submitting a reply to the notice under Sections 270A(1) and 274 of the Income Tax Act, 1961 on account of the authorised Accountant of the petitioner not informing the petitioner about the proceedings and as such, the same could not be responded to on account of bona fide, 3 reasonable, unavoidable circumstances and sufficient cause. It is submitted that the petitioner has a good case to urge on merits and as such, it is necessary that the petitioner is afforded one more opportunity to contest the proceedings by setting aside the impugned order and remitting the matter back to the respondent for reconsideration afresh in accordance with law. 4. Per contra, learned counsel for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed. 5. Though several contentions have been urged, in view of the specific assertions on the part of the petitioner that the inability and omission on the part of the petitioner to contest the proceedings by filing replies, documents, etc., to the Notice was for bona fide reasons adopting a justice oriented approach and to provide one more opportunity to the petitioner, without expressing any opinion on the merits / demerits of the rival contentions of the parties, I deem it just and appropriate to dispose of the matter by setting aside the impugned order and 4 remit the matter back to the respondent for reconsideration afresh in accordance with law. 6. In the result, I pass the following: ORDER (i) The Writ Petition is hereby allowed. (ii) The impugned order of penalty dated 06.01.2022 at Annexure 'C', issued by the respondent is hereby set aside. (iii) Matter is remitted back to the respondent for reconsideration afresh in accordance with law. (iv) Petitioner is directed to file response / reply along with documents to the Show Cause Notice, within a period of four weeks from the date of receipt of a copy of this order, which shall be considered by the respondent, who shall provide an opportunity of personal hearing to the petitioner and proceed thereafter in accordance with law. Sd/- JUDGE RK CT:AKR "