Sharana Basava V. Income Tax Officer Ward - 5 (3) (5) and National Faceless Assessment Centre and The Principal Commissioner of Income Tax

WP/14814/2024

AI Insights

The case involves Sharana Basava, the petitioner, who challenged several notices and orders issued by the Income Tax Department concerning the assessment year 2015-16. The notices were issued under various sections of the Income Tax Act, 1961, including Section 148A(b) and Section 271, which pertained to the reassessment of income and penalties for non-compliance. The petitioner argued that he did not receive the initial notice under Section 148A(b), leading to his inability to respond or provide necessary documents, which he claimed was due to bona fide reasons and unavoidable circumstances. The respondents contested the petition, asserting that it lacked merit. The court, after hearing both parties, decided to set aside the notices and orders and remand the case for fresh consideration, emphasizing the need for a fair opportunity for the petitioner to present his case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796082 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 07-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAJ
• Assessee Lawyers: RAVISHANKAR
• Keywords: Assessment Year 2015-16; Income Tax; Notice Quashing; Penalty order; Writ of Certiorari
• Section: 147; 148; 144; 271(1)(b); 271F; 144B; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:31439 WP No. 14814 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 14814 OF 2024 (T-IT) BETWEEN: 1. SHARANA BASAVA AGED ABOUT 37 YEARS, S/O. SHANKARAPPA NO.33, GROUND FLOOR 2ND MAIN ROAD BAMBOO GARDEN MANJUNATHA NAGAR MAIN ROAD BEHIND LABOUR OFFICE NAGASANDRA POST BENGALURU - 560 073 …PETITIONER (BY SRI. RAVI SHANKAR S.V., ADVOCATE) AND: 1. INCOME TAX OFFICER WARD - 5 (3) (5) BANGALORE - 560032 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, JAWARHARLAL NEHRU STADIUM DELHI - 110003 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX, Digitally signed by REKHA R Location: High Court of Karnataka - 2 - NC: 2024:KHC:31439 WP No. 14814 of 2024 CR BUILDING BANGALORE - 560001 …RESPONDENTS (BY SRI. Y.V. RAVI RAJ, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO 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 22/03/2022 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2021-22/1041260747(1), ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2015-16 HEREIN MARKED AS ANNEXURE-A AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks 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 22/03/2022 bearing DIN No.ITBA / AST / F / 148A(SCN) / 2021-22 / 1041260747(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 notice under Section 148A(d) of the Act dated 30/03/2022 bearing DIN No.ITBA/AST/F/148A/2021-22/1042173069(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 - 3 - NC: 2024:KHC:31439 WP No. 14814 of 2024 section 148 of the Act, dated 30/03/2022 bearing DIN No. ITBA/AST/S/148_1/2021-22/1042178383(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, 144B dated 02/03/2023 bearing DIN No. ITBA/AST/S/147/2022-23/1050345344(1), issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A3. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 271(1)(b) of the Act dated 21/09/2023 bearing DIN No.ITBA/PNL/F/271(1)(b)/2023-24/1056377816(1) issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A4. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271(1)(b) of the Act dated 22/09/2023 bearing DIN No.ITBA/PNL/F/271(1)(C) /2023-24/1056442504(1) issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A5. vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271F of the Act dated 21/09/2023 bearing DIN No.ITBA/PNL/F/271F/2023-24/1056377814(1) issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A6. - 4 - NC: 2024:KHC:31439 WP No. 14814 of 2024 viii) And pass such other orders as this Hon’ble court deems fit and proper in the interest of justice and equity.” 2. Heard learned counsel for the petitioners 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 notices issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 22.03.2022 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. - 5 - NC: 2024:KHC:31439 WP No. 14814 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-A1 dated 30.03.2022 passed under Section 148A(d) of the IT Act and subsequent notice / orders, etc., and remit the matter back to respondent No.1 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: - 6 - NC: 2024:KHC:31439 WP No. 14814 of 2024 ORDER (i) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures - A1, A2, A3, A4, A5 and A6 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 22.03.2022. (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 MDS List No.: 1 Sl No.: 6 "