Shri Chamareddyhally Muniswamy Gowda Radhakrishna V. Assessment Unit Income Tax Department, Ministry of Finance and The Income Tax Officer, Ward-1(2)(1), Bengaluru and The Principal Commissioner of Income Tax-1, Bengaluru

WP/21166/2024

AI Insights

The case involves Shri Chamareddyhally Muniswamy Gowda Radhakrishna, the petitioner, challenging various notices and orders issued by the Income Tax Department under different sections of the Income Tax Act, 1961, for the assessment year 2018-19. The petitioner contended that he did not receive a crucial notice under Section 148A(b), which led to his inability to respond and submit necessary documents, thereby affecting the subsequent assessments and penalties imposed. The respondents defended the validity of the notices and orders. The court, after hearing both parties, decided to set aside the impugned orders and remit the matter back for a fresh assessment, providing the petitioner an opportunity to respond.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 813086 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: SRIHARI V
• Keywords: Assessment Order; Certiorari; Certiorari; Income Tax; Notice; Penalty; Section 148A; Show Cause; Writ petition
• Section: 147; 148; 144; 274; 270A; 144B; 271AAC(1); 148A(b); 226; 148(d); 227

Judgement Text

" - 1 - NC: 2024:KHC:31161 WP No. 21166 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 21166 OF 2024 (T-IT) BETWEEN: SHRI CHAMAREDDYHALLY MUNISWAMY GOWDA RADHAKRISHNA S/O C R MUNISWAMY GOWDA, AGED ABOUT 59 YEARS, NO.117/2, HORAMAVU, AGARA MAIN ROAD, VODDRAPALYA, HORAMAVU AGARA MAIN ROAD BENGALURU – 560 043. …PETITIONER (BY SRI. SRIHARI A V., ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. REPRESENTED BY ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME-TAX / INCOME-TAX OFFICER 2. THE INCOME TAX OFFICER, WARD-1(2)(1), BENGALURU – 560 095. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX – 1, BMTC BUILDING, KORAMANGALA, BENGALURU – 560 095. …RESPONDENTS (BY SRI.M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:31161 WP No. 21166 of 2024 ASSESSMENT ORDER PASSED UNDER SECTION 147 R/W 144 R/W 144B OF THE ACT DATED 17.03.2023 BEARING DIN AND NOTICE NO.ITBA/AST/S/147/2022-23/1050918370(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE-A1 AND ETC., THIS WRIT 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 assessment order passed under Section 147 r/w 144 r/w 144B of the Act dated 17.03.2023 bearing DIN & Notice No. ITBA/AST/S/147/2022-23/1050918370(1) issued by the Respondent No.1 for the assessment year 2018-19 herein marked as ANNEXURE-A1. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Notice issued under Section 274 r/w 270A No.ITBA/PNL/S/270A/2022-23/ 1050918396(1) issued by the Respondent no. 1 for the assessment year 2018-19 herein marked as Annexure-A2. iii). Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice dated 17.03.2023 issued under section 274 r/w 271AAC(1) of the act bearing DIN & Notice No.ITBA/PNL/S/271AAC(1)2022- 23/1050918397(1) issued by the Respondent No.1 for the assessment year 2018-19 marked as ANNEXURE - A3. - 3 - NC: 2024:KHC:31161 WP No. 21166 of 2024 iv) . Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty show cause notice issued under section 270A of the Act dated 04.07.2023 bearing DIN & Notice No. ITBA/PNL/F/270A/2023- 24/1054100983(1) issued by the Respondent No. i for the assessment year 2018-19 marked as ANNEXURE-A4. v). Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice issued under section 272A(1)(D) dated 04/07/2023 bearing DIN & Notice No.ITBA/PNL/F/271A(1)(D)/2023- 24/1054101121(1) issued by the Respondent No. l or the assessment year 2018-19 herein marked as ANNEXURE-A5. vi). Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 04/07/2023 issued under section 271AAC(1) bearing show DIN & Notice No. ITBA/PNL/F/271AAC(1)2023- 24/1054100958(1) issued by the Respondent No. 1 or the assessment year 2018-19 marked asANNEXURE-A6. vii). Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 20.03.2022 issued under section 148A(B) of the Act bearing DIN & Notice No. ITBA/AST/F/148A(SCN)/2021- 22/1041105942(1) issued by the Respondent No. 2 for the assessment year 2018-19 marked as ANNEXURE-B1. viii. . Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed under section 148(D) of the Act dated 29.03.2022 bearing DIN and Notice No. ITBA/ART/F/148A/2021-22/1041961619(1) - 4 - NC: 2024:KHC:31161 WP No. 21166 of 2024 issued by the Respondent No. 2 for the assessment year 2018-19 herein marked as ANNEXURE-B2. ix) . Issue a writ of Certiorari or any other writ or order quashing the notice dated 29.03.2022 issued under section 148 of the Act issued by the Respondent No.2 for the assessment year 2018-19 herein marked as ANNEXURE- B2.” 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 notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 20.03.2022 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 - 5 - NC: 2024:KHC:31161 WP No. 21166 of 2024 petitioner would do so and respondents may be directed to proceed further in accordance with law. 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-B2 dated 29.03.2022 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 - NC: 2024:KHC:31161 WP No. 21166 of 2024 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures A1, A2, A3, A4, A5, A6, B and B2 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-B1 dated 20.03.2024. (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 BMC List No.: 1 Sl No.: 30 "