SHRI. SHIVPRAKASH S/O JAYADEVAYYA BAILHALLIMATH V. THE PRINCIPAL COMMISSIONER

WP/106612/2023

AI Insights

The case involves two writ petitions filed by Shri Shivaprakash, a partner in M/S. J. C. Balihallimath and Co., against the Principal Commissioner of Income Tax and the Income Tax Officer, challenging an order that rejected their applications for condonation of delay in filing income tax returns for the assessment years 2017-18 and 2016-17. The petitions sought to quash the order and direct the consideration of the returns and rectification applications filed under Section 154 of the Income Tax Act. The High Court of Karnataka found that the respondent did not adequately consider the petitioners' contentions regarding the delay and remanded the matter for re-evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690413 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-10-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: H R KAMBIYAVAR
• Keywords: Condonation of delay; Income Tax Return; Rectification of mistake; Refund claim; Writ of Certiorari; Writ of Mandamus
• Section: 154; 119(2)(b); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC-D:14961 WP No. 106610 of 2023 C/W WP No. 106612 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 15TH DAY OF OCTOBER, 2024 BEFORE THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT PETITION NO.106610 OF 2023 (T-IT) C/W WRIT PETITION NO. 106612 OF 2023 IN W.P.NO.106610/2023: BETWEEN: SHRI SHIVAPRAKASH S/O. JAYADEVAYYA BALIHALLIMATH, PARTNER OF M/S. J. C. BALIHALLIMATH AND CO., APMC YARD GADAG - 582 101, AGED ABOUT 63 YEARS. …PETITIONER (BY SRI H. R. KAMBIYAVAR, ADVOCATE) AND: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX, C. R. BUILDING, NAVANAGAR, P. B. ROAD, HUBBALLI – 580 025. 2. THE INCOME TAX OFFICER. WARD 1 HATALGI NAKA. GADAG – 582 101. …RESPONDENTS (BY SRI M.THIRUMALESH, ADVOCATE FOR SRI Y.V.RAVIRAJ, ADVOCATE FOR R1 AND R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE A WRIT OF CERTIORARI OR A WRIT IN THE NATURE OF CERTIORARI QUASHING THE ORDER BEARING NO. F.NO. 119(2)(B)/ABFPJ5737P/PR.CIT- HBL,/2023-24 FOR THE A.Y. 2017-18 DATED 14/07/2023, PASSED BY THE RESPONDENT NO.1 VIDE ANNEXURE-K. ISSUE A WRIT OF MANDAMUS OR A WRIT IN THE NATURE OF MANDAMUS DIRECTING Digitally signed by YASHAVANT NARAYANKAR Location: High Court of Karnataka - 2 - NC: 2024:KHC-D:14961 WP No. 106610 of 2023 C/W WP No. 106612 of 2023 THE RESPONDENT NO.2 HEREIN TO CONSIDER THE RETURN FILED BY THE PETITIONER, DATED 12/08/2020, VIDE ANNEXURE-A AND THE RESPONDENT NO.2 HEREIN TO CONSIDER THE RECTIFICATION OF MISTAKE APPLICATION UNDER SECTION 154 OF THE ACT, FOR THE A.Y 2017-18, DATED 13/12/2019 AND REMINDER DATED. 14.05.2020, VIDE ANNEXURE-G AND G1 RESPECTIVELY, TO THE WRIT PETITION, AND TO ALLOW THE CLAIM OF REFUND MADE BY THE PETITIONER AND ETC., IN W.P.NO.106612/2023: BETWEEN: SHRI SHIVPRKASH S/O. JAYADEVAYYA BALIHALLIMATH, PARTNER OF M/S. J. C. BALIHALLIMATH AND CO., APMC YARD GADAG – 582 101, AGED ABOUT 63 YEARS. …PETITIONER (BY SRI H. R. KAMBIYAVAR, ADVOCATE) AND: 1. THE PRINCIPAL COMMISSIONER, INCOME – TAX, C. R. BUILDING, NAVANAGR, P. B. ROAD, HUBBALLI. 2. THE INCOME TAX OFFICER, WARD -1, HATALGI NAKA, GADAG – 582 101. …RESPONDENTS (BY SRI M. THIRUMALESH, ADVOCATE FOR SRI Y.V.RAVIRAJ, ADVOCATE FOR R1 AND R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE A WRIT CERTIORARI OR A WRIT IN THE NATURE OF CERTIORARI QUASHING THE ORDER BEARING NO.F.NO.119(2)(B)/ABFPJ5737P/PR.CIT- HBL,/2023-24 DATED 14/07/2023, PASSED BY THE RESPONDENT NO.1 VIDE ANNEXURE-K. ISSUE A WRIT OF MANDAMUS OR A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 HEREIN TO CONSIDER THE RETURN FILED BY THE PETITIONER, DATED 12/08/2020, VIDE ANNEXURE-A AND THE RESPONDENT NO.2 HEREIN TO CONSIDER THE RECTIFICATION OF MISTAKE APPLICATION UNDER SECTION 154 OF THE ACT, FOR THE A.Y. 2016-17, DATED 13/12/2019, VIDE ANNEXURE-F, TO THE WRIT PETITION, AND TO ALLOW THE CLAIM OF REFUND MADE BY THE PETITIONER AND ETC., - 3 - NC: 2024:KHC-D:14961 WP No. 106610 of 2023 C/W WP No. 106612 of 2023 THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING - B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE C.M. POONACHA) Writ Petition No.106610/2023 is filed seeking for the following reliefs: a. Issue a writ of certiorari or a writ in the nature of certiorari quashing the order bearing No.F.No. 119(2)(b)/ABFPJ5737P/Pr.CIT-HBL/2023-24 for the A.Y. 2017-18 dated 14/07/2023, passed by the respondent No.1 vide Annexure-K. b. Issue a writ of mandamus or a writ in the nature of mandamus directing the respondent No.2 herein to consider the return filed by the petitioner, dated 12/08/2020, vide Annexure-A and the respondent No.2 herein to consider the rectification of mistake application under Section 154 of the Act, for the A.Y 2017-18, dated 13/12/2019 and reminder dated 14.05.2020, vide Annexure-G and G1 respectively, to the writ petition, and to allow the claim of refund made by the petitioner. - 4 - NC: 2024:KHC-D:14961 WP No. 106610 of 2023 C/W WP No. 106612 of 2023 2. Writ Petition No.106612/2023 is filed seeking for the following reliefs: a. Issue a writ certiorari or a writ in the nature of certiorari quashing the order bearing No.F.No.119 (2)(b)/ABFPJ5737P/Pr.CIT-HBL/2023-24 dated 14/07/2023, passed by the respondent No.1 vide Annexure-K. b. Issue a writ of mandamus or a writ in the nature of mandamus directing the respondent No.2 herein to consider the return filed by the petitioner, dated 12/08/2020, vide Annexure-A and the respondent No.2 herein to consider the rectification of mistake application under Section 154 of the Act, for the A.Y. 2016-17, dated 13/12/2019, vide Annexure-F, to the writ petition, and to allow the claim of refund made by the petitioner. 3. It is forthcoming that the petitioners had filed applications dated 13.08.2020 (Annexure-H) and dated 25.02.2021 (Annexure-J) annexed in the respective petitions, seeking for condonation of delay to enable filing of return of income. The respondent No.1 vide order dated - 5 - NC: 2024:KHC-D:14961 WP No. 106610 of 2023 C/W WP No. 106612 of 2023 14.07.2023 (Annexure-K) rejected the said applications, inter alia holding that the applicant has not produced any evidence to show how he was prevented from filing the return of income. 4. It is relevant to note that respondent No.1 has not considered the request made by the petitioners to condone the delay and has held that the application does not fall within the ambit of Section 119(2)(b) of the Income Tax Act, 19611. Admittedly under Section 119(2)(b) of the Act, respondent No.1 has power to condone the delay. The order passed by respondent No.1 does not in any manner consider the contentions put forth on behalf of the petitioners seeking condonation of delay. 5. Hence, it is just and proper that the said orders dated 14.07.2023 be set aside and the matter be remanded to respondent No.1 to consider the request made by the petitioners for condonation of delay and pass 1 Hereinafter referred to as the ‘Act’ - 6 - NC: 2024:KHC-D:14961 WP No. 106610 of 2023 C/W WP No. 106612 of 2023 appropriate orders in accordance with law. Accordingly, the following: ORDER i) The writ petitions are allowed; ii) The orders dated 14.07.2023 bearing No.F.No. 119(2)(b)/ABFPJ5737P/Pr.CIT-HBL/2023-24 at Annexure-K passed by respondent No.1 in both the writ petitions are set aside; iii) The petitioners shall appear before respondent No.1 on 20.11.2024 without requirement of any fresh notice being issued in this regard; iv) Pursuant to the appearance of the petitioners, respondent No.1 shall pass appropriate orders in accordance with law. v) All contentions kept open. Sd/- (C.M. POONACHA) JUDGE SH CT-ASC, List No.: 1 Sl No.: 73 "