M/S SANGAMESHWAR CO-OPERATIVE CREDIT SOUHARDA SANGA NIYAMIT V. INCOME TAX OFFICER AND ANR

WP/201844/2024

AI Insights

The case involves M/s Sangameshwar Co-operative Credit Souharda Sangha Niyamit, represented by its secretary, challenging various orders and notices issued by the Income Tax Officer and the Central Board of Direct Taxes. The petitioner contested the legality of these orders, which were based on an old PAN number, despite having communicated the change to a new PAN. The court's decision to set aside the orders and remit the case for fresh consideration was based on the procedural oversight and the need to ensure justice and equity in the assessment process.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 761617 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-11-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: TIRUMALESH
• Assessee Lawyers: PRASANNA URALA; GOPALAKRISHNA YADAV
• Keywords: Assessment Order; Certiorari; Certiorari; Income Tax; Penalty order; Writ petition; PAN Number Change
• Section: 147; 144; 144B; 271AAC(1); 148A(b); 148A(d); 272A(1)(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC-K:8652 WP No. 201844 of 2024 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 20TH DAY OF NOVEMBER, 2024 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 201844 OF 2024 (T-IT) BETWEEN: M/S SANGAMESHWAR CO-OPERATIVE CREDIT SOUHARDA SANGA NIYAMIT DESI BUILDING 1ST FLOOR, NEAR KARNATAKA BANK, JALANAGAR, VIJAYAPURA 586109, KARNATAKA REPRESENTED BY ITS SECRETARY MRS SUJATA P GAVIMATH D/O. SHRI SIDDALINGAYYA, AGE 48 YEARS, NEAR SRI. PARK, VIJAYAPURA-586109 …PETITIONER (BY SRI. PRASANNA N. URALA AND GOPALKRISHNA B YADAV, ADVOCATES) AND: 1. INCOME TAX OFFICER, WARD 1 AND TPS BIJAPUR AAYAKAR BHAVAN, NEAR ALL INDIA RADIO ATHANI ROAD, VIJAYAPURA, KARNATAKA 586104 2. CENTRAL BOARD OF DIRECT TAXES CENTRAL SECRETARIAT NORTH BLOCK, NEW DELHI 110001 REPRESENTED BY ADDITIONAL / JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE Digitally signed by SUMITRA SHERIGAR Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-K:8652 WP No. 201844 of 2024 …RESPONDENTS (SRI. TIRUMALESH M., ADV. FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, QUASH BY AN ORDER, WRIT, OR DIRECTION IN THE NATURE OF CERTIORARI THE ASSESSMENT ORDER PASSED U/S 147 R.W.S. 144 R.W.S. 144B OF THE ACT DATED 02.01.2024 BEARING DIN ITBA/AST/S/147/2023- 24/1059274880(1) IN ANNEXURE-F AND THE NOTICE OF DEMAND DATED 02.01.2024 BEARING DIN AND NOTICE NO. ITBA /AST/S/156/2023-24/ 1059274933(1) IN ANNEXURE-G PASSED BY THE 2ND RESPONDENT AS UNLAWFUL AND ILLEGAL ALONG WITH THE ATTENDANT ACTIONS.QUASH BY AN ORDER, WRIT OR DIRECTION IN THE NATURE OF CERTIORARI THE PENALTY ORDER PASSED U/S 272A(1)(d) OF THE ACT DATED 05.07.2024 BEARING DIN ITBA/PNL/F/272A(1)(d)/ 2024-25/ 106643416(1) IN ANNEXURE- H PASSED BY THE 2ND RESPONDENT AS UNLAWFUL AND ILLEGAL ALONG WITH THE ATTENDANT ACTIONS.QUASH BY AN ORDER, WRIT OR DIRECTION IN THE NATURE OF CERTIORARI THE PNEALTY ORDER PASSED U/S 271AAC(1) OF THE ACT DATED 11.07.2024 BEARING DIN ITBA/ PNL/F/ 271AAC(1) / 2024-25/ 1066640766 (1) IN ANNEXURE-J PASSED BY THE 2ND RESPONDENT AS UNLAWFUL AND ILLEGAL ALONG WITH THE ATTENDANT ACTIONS.GRANT SUCH OTHER RELIEF THAT THIS HONOURABLE COURT MAY THINK FIT INCLUDING THE COST OF THIS PETITION IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR PRL. HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER (PER: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR) 1. In this petition, the petitioner seeks the following reliefs: - 3 - NC: 2024:KHC-K:8652 WP No. 201844 of 2024 (i) Quash by an order, writ, or direction in the nature of certiorari the assessment order passed u/s 147 r.w.s. 144 r.w.s. 144B of the act dated 02.01.2024 bearing DIN ITBA/AST/S/147/2023-24/1059274880(1) in annexure-f and the notice of demand dated 02.01.2024 bearing din and notice No. ITBA /AST/S/156/2023-24/ 1059274933(1) in annexure-g passed by the 2nd respondent as unlawful and illegal along with the attendant actions. (ii) Quash by an order, writ or direction in the nature of certiorari the penalty order passed u/s 272a(1)(d) of the act dated 05.07.2024 bearing din itba/pnl/f/272a(1)(d)/ 2024-25/ 106643416(1) in annexure-h passed by the 2nd respondent as unlawful and illegal along with the attendant actions. (iii) Quash by an order, writ or direction in the nature of certiorari the penalty order passed u/s 271AAC(1) of the act dated 11.07.2024 bearing din itba/ PNL/F/ 271aac(1) / 2024-25/ 1066640766 (1) in Annexure-j passed by the 2nd respondent as unlawful and illegal along with the attendant actions. (iv) Grant such other relief that this Honourable court may think fit including the cost of this petition in the interest of justice and equity 2. Heard the learned counsel for the petitioner and the learned counsel for the respondent and perused the material on record. 3. Learned counsel for the petitioner invited my attention to the notice under section 148A(b) of the Income Tax Act 1961, dated 19.03.2022, in order to contend that though the petitioner submitted a reply to the same, due to - 4 - NC: 2024:KHC-K:8652 WP No. 201844 of 2024 oversight and inadvertence and due to bona fide reasons, unavoidable circumstances and sufficient cause, the petitioner did not state that the said proceedings had been initiated in relation to the petitioner's old PAN number bearing No.AAMTS2058Q and not in respect of the new PAN number i.e. AAXA54177J in relation to which the petitioner had not only filed the income tax returns for the assessment year 2018-2019 on 31.08.2018 itself, but the petitioner had also communicated regarding the surrendering of the old pan and as well as the new pan being allotted to him vide letter 17.05.2019 at Annexure B. It is submitted that due to the omission on the part of the petitioner to intimate the same in its reply to the Section 148A(b) notice and failure on the part of the petitioner to produce necessary documents in this regard, the respondents have proceeded to pass the impugned order and issued consequential notices against the petitioner. 4. In this context, learned counsel for the petitioner submits that if the impugned Order at Annexure-D dated 06.04.2022 under section 148A(d) of the Income Tax Act, - 5 - NC: 2024:KHC-K:8652 WP No. 201844 of 2024 and the consequential notices are set aside and the matter remitted back to the stage of submitting additional/further reply to the Section 148A(b) notices by the petitioner, the petitioner would submit an additional/further reply along with all relevant documents and the respondent No.1 may be directed to reconsider the same and pass appropriate orders afresh in accordance with law. 5. Learned counsel for the Respondents-Revenue submits that there is no merit in the petition and the same is liable to be dismissed. 6. A perusal of the impugned order at Annexure-D dated 06.04.2022 passed under section 148A(d) of the Income Tax Act, will indicate that though the first respondent refers to a reply submitted by the petitioner to the Section 148A(b) notice, he does not refer to the contention of the petitioner that the PAN number had been changed or that the impugned proceedings had been initiated in relation to the new PAN number, especially when no documents in this regard had been submitted by the petitioner to the respondent No.1. On the other hand, the impugned - 6 - NC: 2024:KHC-K:8652 WP No. 201844 of 2024 proceedings and orders are in relation to the old PAN number of the petitioner. 7. Under these circumstances, without expressing any opinion on the merit/demerits of the rival contentions and in order to provide one more opportunity to the petitioner to substantiate its contentions, I deem it just and appropriate to set aside the impugned order at Annexure-D dated 06.04.2022 as well as well as subsequent orders, notices, etc. and remit the matter back to the respondent No.1 for reconsideration afresh to the stage of submitting further/additional reply to the Section 148A(b) notice and to proceed further in accordance with law. 8. Accordingly, I pass the following: ORDER (i) The petition is allowed. (ii) The impugned order at Annexure-D dated 06.04.2022 passed under Section 148A(d) of the Income Tax Act, as well as the subsequent orders, notices, etc., at - 7 - NC: 2024:KHC-K:8652 WP No. 201844 of 2024 Annexure-F dated 02.01.2024, Annexure-G dated 06.04.2022, Annexure-H dated 05.07.2024, and Annexure-J dated 11.07.2024 are hereby set aside and the matter is remitted back to the respondent No.1 for reconsideration afresh to the stage of the petitioner submitting additional/further reply to the Section 148A(b) notice at Annexure-C dated 19.03.2022 and to proceed further in accordance with law. (iii) Liberty is reserved in favor of the petitioner to submit additional reply, documents, etc. which shall be considered by the respondent No.1 who shall provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SVH List No.: 1 Sl No.: 64 "