SHRINIDHI URBAN COOP. CREDIT SOCIETY RABAKAVI V. THE INCOME TAX OFFICER

WP/105038/2022

AI Insights

The case involves Shrinidhi Urban Co-op. Credit Society, represented by its CEO, challenging an order and notice issued by the Income Tax Officer, Ward-1, Bagalkot, under the Income Tax Act, 1961 for the Assessment Year 2016-17. The petitioner argued that their detailed reply to a notice was not considered, leading to a mechanical passing of the order and issuance of the notice. The respondent defended the action, stating that the petitioner did not adequately show the transactions in question. The court found that the respondent did not properly consider the petitioner's reply and thus set aside the order and notice, remanding the case for further proceedings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 672573 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 26-09-2024
• Assessment Year: misc
• Other Referred Cases: UNION OF INDIA AND OTHERS Vs. ASHISH AGARWAL
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH; ROOPA ANAVEKAR
• Assessee Lawyers: SANGRAM KULKARNI
• Keywords: Assessment Year 2016-17; Income Tax; Notice; Order; Remand; Writ of Certiorari
• Section: 148; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC-D:14092 WP No. 105038 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 26TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 105038 OF 2022 (T-IT) BETWEEN: SHRINIDHI URBAN CO-OP. CREDIT SOCIETY, RABAKAVI, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, SHRI. SOMASHEKHAR S/O MALLESHAPPA SAVADI, AGE: 46 YEARS, OCC: SERVICE, R/O: KOKALKI LANE, RABAKAVI, DIST: BAGALKOT-587 314. …PETITIONER (BY SRI. SANGRAM.S.KULKARNI., ADVOCATE) AND: THE INCOME TAX OFFICER, WARD-1, T.P.S. BAGALKOT, AAYAKAR BHAVAN, SECTOR 24, NAVANAGAR, BAGALKOT-587 102. …RESPONDENT (BY SRI. M.THIRUMALESH AND MS. ROOPA ANAVEKAR., ADVOCATES) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:14092 WP No. 105038 of 2022 ORAL ORDER Sri.Sangram S.Kulkarni., counsel for the petitioner and Sri.M.Thirumalesh., counsel for the respondent have appeared in person. 2. The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the order dated 29.07.2022 passed by the respondent under Section 148A(d) of the Income Tax Act, 1961 in DIN & Order No:ITBA/COM/F/17/2022-23/1044282963(1) for the Assessment Year 2016-17 vide Annexure-E and the Notice dated 29.07.2022 issued under Section 148 of the Income Tax Act, 1961 in DIN & Notice No:ITBA/AST/M/148_1/2022-23/1044315691(1) for the Assessment Year 2016-17 vide Annexure-F. 3. Counsel Sri.Sangram S.Kulkarni., in presenting his arguments strenuously urged that the respondent has failed to consider the detailed reply that has been given by the petitioner. Hence, he submits that the matter may be remanded with an opportunity for a personal hearing. Counsel, therefore, submits that the petition may be allowed. - 3 - NC: 2024:KHC-D:14092 WP No. 105038 of 2022 By way of reply, counsel Sri.M.Thirumalesh., urged several contentions. He vehemently contends that the petitioner has not shown each of the transactions that are reflected in the bank accounts. Hence, he justified the action of the respondent. He vehemently objected for the remand. He submits that the Writ Petition is devoid of merits and the same may be dismissed. 4. Heard the arguments and perused the Writ papers with care. 5. The petitioner is a cooperative Society and it has been filing its income tax returns regularly. As per the judgment of apex Court in UNION OF INDIA AND OTHERS Vs. ASHISH AGARWAL, a notice was issued to the petitioner on 26.05.2022 under Section 148A(b) of the Act to treat the earlier notice dated 26.04.2021 as a show cause notice and deemed to have been issued under Section 148A(b) of the Act. In response to the notice, the petitioner filed a detailed reply on 08.06.2022. The grievance of the petitioner is that the respondent without considering the detailed reply, has mechanically gone - 4 - NC: 2024:KHC-D:14092 WP No. 105038 of 2022 ahead to pass 148A(d) order on 29.07.2022 and issued 148 Notice to the petitioner. The reply given by the petitioner to the notice is furnished along with the Writ Petition and the same is marked as Annexure-D. A perusal of the same reflects that the petitioner has given a detailed reply. A careful perusal of 148A(d) order reveals that the respondent has not considered the reply that has been given by the petitioner from the right perspective. Hence, the matter requires a remand. The 148A(d) order and 148 Notice are liable to be set-aside, so they are set-aside. 6. The Writ of Certiorari is ordered. The order dated 29.07.2022 passed by the respondent under Section 148A(d) of the Income Tax Act, 1961 in DIN & Order No:ITBA/COM/F/17/2022-23/1044282963(1) for the Assessment Year 2016-17 vide Annexure-E and the Notice dated 29.07.2022 issued under Section 148 of the Income Tax Act, 1961 in DIN & Notice No:ITBA/AST/M/148_1/2022- 23/1044315691(1) for the Assessment Year 2016-17 vide Annexure-F are quashed. - 5 - NC: 2024:KHC-D:14092 WP No. 105038 of 2022 The matter is remanded to the respondent to the stage of giving added/additional reply to 148A(b) notice. The respondent is to offer an opportunity of a personal hearing to the petitioner and thereafter, pass orders as per the law. 7. Resultantly, the Writ Petition is allowed and remanded. This Court has not expressed any opinion on the merits of the case. Sd/- (JYOTI MULIMANI) JUDGE TKN List No.: 3 Sl No.: 1 "