SANGEETHA PRASANNA V. INCOME TAX OFFICER

WP/709/2024

AI Insights

The case involves Sangeetha Prasanna, the petitioner, who challenged the notices and subsequent orders issued by the Income Tax Department concerning her tax assessment for the year 2015-16. The petitioner argued that the initial notice under Section 148A(b) of the Income Tax Act, 1961 was not properly served to her but to her Chartered Accountant, and at an outdated address, leading to her unawareness of the proceedings. The court found merit in the petitioner's arguments, noting the lack of proper service details in the respondent's submissions, and thus decided to set aside the notices and orders, remitting the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748111 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: RAVI SHANKAR V
• Keywords: Income tax assessment; Notice Quashing; Service of notice; Writ of Certiorari; Reconsideration of Assessment
• Section: 147; 148; 144; 144B; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:4940 WP No. 709 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 709 OF 2024 (T-IT) BETWEEN: SANGEETHA PRASANNA ”DHARE” NEAR SAMPIGEKATTE MADIKERE, KODAGU 571 201 PAN : AJZPP6496R PREVIOUSLY AT SANGEETHA PRASANNA AGED ABOUT 51 YEARS, D/O LATE SRI. K C BIDAPPA RESIDING NEAR A V SCHOOL MAHADEVPET MADIKERI 571 201 …PETITIONER (BY SRI. RAVI SHANKAR S V, ADVOCATE) AND: 1. INCOME TAX OFFICER WARD , MADIKERI, MADIKERI -SRIVALLI BUILDING, MADIKERI -571 201 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/ JOINT /DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER INCOME TAX DEPARTMENT MINISTRY OF FINANCE, ROOM NO.401, 2nd FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM, DELHI - 110003 Digitally signed by ANAND N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:4940 WP No. 709 of 2024 3. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX THE OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, C R BUILDING, QUEENS ROAD, BANGALORE -560001 …RESPONDENTS (BY SRI SUSHAL TIWARI, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE U/S 148A(b) OF THE ACT DTD 17.03.2022 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2021-22/1040960684(1) ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2015-16 HEREIN MARKED AS ANNEXURE-A AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, the petitioner seeks for the following reliefs. \"i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 17/03/2022 bearing DIN No. ITBA/AST/F/148A(SCN)/2021- 22/1040960684(1) issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure - A. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the - 3 - NC: 2024:KHC:4940 WP No. 709 of 2024 notice under Section 148A(d) of the Act dated 29/03/2022 bearing DIN No. ITBA/AST/F/148A/2021-22/1042008715(1) issued by the Respondent No.1 for the assessment year 2015- 16 herein marked as Annexure - A1. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act dated 29/03/2022 bearing DIN No. ITBA/AST/S/148_1/2021-22/1042010319(1) issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure - A2. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed U/s 147 r.w.s 144 dated 31/01/2023 bearing ITBA/AST/S/147/2022- 23/1049297580(1) issued by the Respondent No. 2 for the assessment year 2015- 16 herein marked as Annexure - A3.\" 2. Heard the learned counsels for the parties and perused the material on record. - 4 - NC: 2024:KHC:4940 WP No. 709 of 2024 3. In addition to reiterating the various contentions urged in the present petition and referring to the material on record, the learned counsel for the petitioner submits that the impugned notice under Section 148A(b) of the Income Tax Act, 1961 [for short, 'the IT Act'] dated 17.03.2022 vide Annexure-A was not served upon the petitioner, but was served on the Chartered Accountant, who was neither instructed nor engaged by her for the purpose of the said proceedings. It is also contended that the said notice was served on the petitioner's earlier address and not at the address where the petitioner was residing at the time of issuance of the said notice. It was therefore submitted that the petitioner was completely unaware of the impugned proceedings pursuant to the notice under Section 148A(b) of the IT Act and consequently, the impugned order under Section 148A(d) of the IT Act dated 29.03.2022 [Annexure-A1] and all consequential notices deserve to be quashed and the matter remitted back to the respondent No.1 - the Income Tax Officer, Ward, Madikeri for reconsideration afresh by - 5 - NC: 2024:KHC:4940 WP No. 709 of 2024 providing an opportunity to the petitioner to file her objections/documents to the notice under Section 148A(b) of the IT Act and proceed further 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. A perusal of the impugned order will indicate that no details/particulars as to when and how the notice was served physically upon the petitioner is forth coming in the impugned order. In this context, except for stating that the petitioner has been duly served via E-mail, the respondent No.1 has not provided details in the impugned order in this regard and in the light of the specific assertion on the part of the petitioner that her inability and omission to file reply to the notice under Section 148A(b) of the IT Act and contest the proceedings, was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate to adopt a justice oriented approach and provide one more opportunity to the - 6 - NC: 2024:KHC:4940 WP No. 709 of 2024 petitioner and set aside the impugned order dated 29.03.2022 under Section 148A(d) of the IT Act and remit the matter back to the concerned respondent for reconsideration afresh in accordance with law. 5. In the result, the following: ORDER a The petition is hereby allowed. b The impugned order dated 29.03.2022 under Section 148A(d) of the IT Act [Annexure-A1], the Notice dated 29.03.2022 under Section 148 of the IT Act [Annexure-A2] and the Assessment Order dated 31.01.2023 under Section 147 read with Section 144 read with Section 144B of the IT Act [Annexure-A3] are set aside. c The matter is remitted back to the respondent No.1 - the Income Tax Officer, Ward, Madikeri for reconsideration afresh - 7 - NC: 2024:KHC:4940 WP No. 709 of 2024 in accordance with law from the stage of issuance of notice under Section 148A(d) of the IT Act. d Liberty is reserved liberty in favour of the petitioner to file response/reply, documents etc., to the said notice which shall be considered by the respondents, who shall provide an opportunity of personal hearing to the petitioner and proceed further in accordance with law. Sd/- JUDGE RB "