PRATHAMIKA KRISHI PATHINA SAHAKARA SANGHA NIYAMITHA V. INCOME TAX OFFICER

WP/125/2025

AI Insights

The case involves Prathamik Krishi Pathina Sahakara Sangha Niyamitha Co-operative Society, represented by its Secretary, who filed a writ petition against the Income Tax Officer Ward-1 and TPS Hassan, the National Faceless Assessment Centre, and the Principal Commissioner of Income Tax-3. The petitioner challenged an ex-parte assessment order for the assessment year 2019-20, which was based on a notice under Section 148A(b) of the Income Tax Act, 1961. The petitioner argued that due to various reasons, they could not respond to the notice or participate in the proceedings, and sought an opportunity to explain the treatment of loan repayments by farmers as income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 671420 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 08-01-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DILIP; M THIRUMALESH
• Assessee Lawyers: RAVISHANKAR
• Keywords: Assessment Year 2019-20; Ex parte assessment; Income Tax; Notice Quashing; Writ petition
• Section: 148A(b); 226; 227

Judgement Text

" - 1 - NC: 2025:KHC:573 WP No. 125 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO. 125 OF 2025 (T-IT) BETWEEN: PRATHAMIKA KRISHI PATHINA SAHAKARA SANGHA NIYAMITHA CO-OPERATIVE SOCIETY ACT, 1956 #1, A CHOLENAHALLY ADAGUR B. O., ADAGUR HASSAN-573116 REP. BY SECRETARY PAN AANFP17053 ALSO AT: ALSO AT RAVI C M AGED 43 YEARS S/O MANJAPPA R/AT NO.1, NEAR VETERINARY HOSPITAL MAIN ROAD, CHOLENAHALLY ADGUR POST CHANNARAYAPATNA- 573116. …PETITIONER (BY SRI. RAVI SHANKAR S. V., ADV.) AND: 1. INCOME TAX OFFICER WARD -1 AND TPS HASSAN- 573201. Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:573 WP No. 125 of 2025 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICE INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO.401, 2ND FLOOR, E- RAMP JAWAHARLAL NEHARU STADIUM DELHI- 110003. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX -3 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX -3 BMTC BUILDING, KORAMANGALA, BANGALORE -560095. …RESPONDENTS (BY SRI. DILIP M. & SRI.M.THIRUMALESH ADVS.) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO I) QUASHING THE NOTICE UNDER SECTION 148A(B) OF THE ACT DATED 19/03/2023, BEARING DIN ITBA/AST/F/148A(SCN)/2022- 23/1050959633(1) NO. ISSUED BEARING DIN ITBA/AST/F/148A(SCN/2022-23/ 1050959633(1) NO ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANN-A AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2025:KHC:573 WP No. 125 of 2025 CORAM: HON'BLE MR JUSTICE S.G.PANDIT ORAL ORDER Learned counsel Sri.M.Dilip accepts notice for respondents. 2. Though the matter is listed for preliminary hearing, with the consent of the learned counsel appearing for the parties, the petition is taken up for disposal. 3. Heard learned counsel Sri.Ravishankar S.V. for petitioner and Sri.M.Dilip learned counsel for the respondents. Perused the writ petition papers. 4. Learned counsel for the petitioner would submit that the petitioner, a Primary Agricultural Co-operative Society is before this Court, questioning the ex-parte assessment order passed for the assessment year 2019-20. It is submitted that the notice under Section 148A(b) of the Income Tax Act, 1961 (for short “1961 Act”) was issued to the petitioner. Though the petitioner received the notice, he could not reply for various reasons and participate in - 4 - NC: 2025:KHC:573 WP No. 125 of 2025 the proceedings initiated in pursuance of the said notice. Learned counsel would pray for an opportunity to the petitioner to file their reply and participate in the proceedings. He submits that repayment of loan taken by the farmers by way of cash is treated as income for the assessment year. Thus, he would pray for an opportunity to explain the same before respondent No.1. 5. Per contra, learned counsel Sri.Dilip for the respondents admits that it is an ex-parte order, but submits that having received the notice issued under Section 148A(b) of 1961 Act, the petitioner failed to submit its reply or participate in the proceedings. 6. Having heard the learned counsel for the parties and taking note of the fact situation, I am of the view that the petitioner is to be provided an opportunity to reply to Annexure-A notice issued under Section 148A(b) of 1961 Act and ought to be given an opportunity to the petitioner to participate in the proceedings. - 5 - NC: 2025:KHC:573 WP No. 125 of 2025 7. As submitted by the learned counsel for the petitioner, the petitioner is a co-operative society. The contention of the petitioner that repayment of small loans by the farmers is treated as income, which needs to be explained by the petitioner. In the above circumstances, only to provide an opportunity to the petitioner, the matter requires to be remanded to respondent No.1. 8. Hence, the following order: (i) The writ petition is allowed. (ii) Annexure-A1 bearing No.ITBA/AST/S/118/ 2022-23/1051500326(1) dated 28.03.2023; Annexure-A2 bearing No.ITBA/AST/F/148A/2022-23/1051635272(1) dated 30.03.2023; Annexure-A3 bearing No.ITBA/AST/S/148-1/2022-23/1051635668(1) dated 30.03.2023; Annexure-A4 bearing No.ITBA/AST/S/147/ 2023-24/1060314130(1) dated 30.01.2024; Annexure-A5 bearing No.ITBA/PNL/F/272A(1)(d)/2024-25/1066654129 (1) dated 12.07.2024; Annexure-A6 bearing - 6 - NC: 2025:KHC:573 WP No. 125 of 2025 No.ITBA/PNL/F/271AAC (1)/2024-25/1066654418(1) dated 12.07.2024 are quashed. (iii) The petitioner is provided three weeks time from today to file objections to notice under Section 148A(b) of 1961 Act. Thereafter, the first respondent to proceed further, in accordance with law. All contentions of the parties left open. Sd/- (S.G.PANDIT) JUDGE MPK CT:bms List No.: 1 Sl No.: 46 "