Smt. Basappa Nirmala Devi V. Assessment Unit Faceless Assessment Centre and National Faceless Assessment Centre and Jurisdictional Assessing Officer and Principal Commissioner of Income Tax-6

WP/15159/2024

AI Insights

The case involves Smt. Basappa Nirmala Devi, the petitioner, who challenged the validity of an ex parte assessment order and a notice under Section 148A(d) of the Income Tax Act, 1961, for the assessment year 2019-20. The petitioner argued that the notice was not responded to due to bona fide lapses, as she was unfamiliar with such notices being a first-time assessee. Additionally, it was contended that the proceeds from a sale transaction, which were deposited in a now-bankrupt cooperative credit institution, were not realizable. The court, considering these peculiar facts, decided to set aside the orders and remand the matter for a proper opportunity to respond to the notice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 817301 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: M V SESHACHALA; NAGHARISH
• Keywords: Exparte assessment order; Nil Return; Notice under Section 148A(d); Bonafide lapses
• Section: 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:24861 WP No. 15159 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 15159 OF 2024 (T-IT) BETWEEN: 1. SMT. BASAPPA NIRMALA DEVI W/O. N. C. NAGARAJ, AGED 54 YEARS, R/AT NO. 230, 15TH CROSS, 2ND STAGE, 2ND PHASE, WCR MAHALAKSHMIPURAM, BENGALURU-560 086. … PETITIONER (BY SRI. M.V.SESHACHALA, SENIOR ADVOCATE FOR SRI NAGHARISH G.S., ADVOCATE) AND: 1. ASSESSMENT UNIT FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001. REP. BY ASSESSING OFFICER 2. NATIONAL FACELESS ASSESSMENT CENTRE NO.412-413, 1ST FLOOR, OPP. METRO PILLAR NO. 793, DWARKA MOR, NEW DELHI-110 059. REP. BY ASSESSING OFFICER. Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:24861 WP No. 15159 of 2024 3. JURISDICTIONAL ASSESSING OFFICER INCOME TAX OFFICER, WARD-6(2)(1), BMTC BUILDING, KORAMANGALA, BENGALURU-560 095. 4. PRINCIPAL COMMISSIONER OF INCOME TAX- 6 BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU-560 095. … RESPONDENTS (BY SRI. M. DILIP, JUNIOR STANDING COUNSEL) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASH THE EXPARTE ASSESSMENT ORDER DATED 25/02/2024 BEARING NO. ITBA/AST/S/147/2023-24/1061469786(1) ANNEXURE-C2 PASSED BY FIRST RESPONDENT FOR AY 2019-20 AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has called in question the validity of exparte assessment order dated 25.02.2024 at Annexure-C2 as well as order under Section 148A (d) of the Income Tax Act, 1961 at Annexure-C1 and sought for direction to the Assessing Officer to accept the return of income at Annexure-F. - 3 - NC: 2024:KHC:24861 WP No. 15159 of 2024 2. It is the case of the petitioner that notice issued under Section 148A (d) was not replied due to certain bonafide lapses, as petitioner not being previous assessee, was not fully aware of such notice. 3. Learned Senior counsel appearing on behalf of the petitioner submits that in the factual matrix of the case the proceeds of sale transaction which was deposited in Sree Kanva Souharda Co-operative Credit Ltd., was also not realisable as the said institution is a co-operative credit institution had gone bankrupt and proceedings are initiated. 4. It is submitted that eventually before return is filed consequent to the notice under Section 148 in light of sale proceeds being not realizable, it would be NIL Return filed and such aspect should be taken note of while affording opportunity to the petitioner by taking a lenient view while considering a request for affording an opportunity of replying to the notice under Section 148A (d). - 4 - NC: 2024:KHC:24861 WP No. 15159 of 2024 5. Taking note of the peculiar facts of the case as noticed above, it would meet the ends of justice to relegate the matter to the stage of reply to Section 148A(d) notice. 6. Accordingly, order under Section 148A (d) at Annexure-C1 and C2 are set aside and the matter is remitted to the stage of reply to Section 148A(d) notice. The petitioner is granted two weeks time from the date of issuance of certified copy of the notice to make out reply to the 148A(d) notice. Sd/- JUDGE NP "