Smt. Bhagyalakshmi, Srinath Damodar V. The Principal Commissioner of Income Tax, Bengaluru - 1 and The Income Tax Department, National Faceless Assessment Center, Delhi and The Income Tax Officer, Ward 1(2)(1), Bangalore

WP/2559/2024

AI Insights

The case involves Smt. Bhagyalakshmi, who filed a writ petition against the ex-parte assessment order issued by the Income Tax Officer for the assessment year 2018-19. The petitioner contended that due to bona fide reasons and unavoidable circumstances, she was unable to respond to the notices under Sections 148 and 142(1) of the Income Tax Act, 1961, leading to the ex-parte order. The court considered the petitioner's inability to respond and decided to set aside the ex-parte order, allowing her an opportunity to present her case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 804978 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 13-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: BORKAR SUBODH
• Keywords: Assessment year 2018-19; Ex-parte assessment order; Income Tax; Quash; Writ of Certiorari; Writ of Mandamus; Writ of prohibition
• Section: 148; 144; 142(1); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:32500 WP No. 2559 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 2559 OF 2024 (T-RES) BETWEEN: SMT. BHAGYALAKSHMI, SRINATH DAMODAR, AGED ABOUT 51 YEARS, 101, NARAYANASHETTY ROAD, SHIVAJINAGAR, BANGALORE 560 001. PAN NO. DANDPD7704N …PETITIONER (BY SMT. BORKAR SHEETAL SUBODH.,ADVOCATE) AND: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX , BENGALURU - 1 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU 560 095. 2. THE INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTER, DELHI – 110 001. 3. THE INCOME TAX OFFICER, WARD 1(2)(1), BANGALORE BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, 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 I) QUASH THE IMPUGNED EX-PARTE ASSESSMENT ORDER DATED 08/02/2023, BEARING DIN AND ORDER NO. ITBA/AST/S/147/2022-23/1049544962(1) PASSED U/S 144 R/W SECTION 148 OF THE ACT, IN RESPECT OF THE RELEVANT ASSESSMENT YEAR 2018-19, UNDER THE INCOME TAX ACT, 1961, VIDE ANNEXURE-F, PASSED BY THE R3 AUTHORITY AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by Vandana S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:32500 WP No. 2559 of 2024 CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner has sought for the following reliefs:- “ (i) Issue a Writ of Certiorari or in the like nature of quashing the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN &Order No.: ITBA/AST/S/147/2022-23/1049544962(10) passed U/s. 144 R/w. Section 148 of the Act, in respect of the relevant assessment year 2018-19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent No.3 authority; (ii) Issue Writ of Mandamus or in the like nature of writ of direction, directing the respondent authorities to refrain from initiating any kind of proceedings, with respect to the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN & Order No.: ITBA/AST/S/147/2022-23/1049544962(1); passed U/s. 144 R/w. Section 148 of the Act, in respect of the relevant assessment year 2018-19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent No.3 authority; (iii) Issue writ of Mandamus, directing the concerned respondent authorities to refrain any further activities and such initiatives in respect of coercive recovery in respect of impugned demand under the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN & Order No.: ITBA/AST/S/147/2022- - 3 - NC: 2024:KHC:32500 WP No. 2559 of 2024 23/1049544962(1); passed U/s. 144R/w. Section 148 of the Act, in respect of the relevant assessment year 2018- 19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent No.3 authority; (iv) Issue Writ of Prohibition, prohibiting the concerned respondent authorities in taking further action, measures or steps and such initiatives in respect of recovery in respect impugned demand under the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN & Order No.: ITBA/AST/S/147/2022-23/1049544962(1); passed U/s. 144 R/w. Section 148 of the Act, in respect of the relevant assessment year 2018-19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent NO.3 authority; (v) Issue any other writ, order or direction in favour of the Petitioner, which this Hon’ble Court may deem fit and proper in the facts and circumstances of the in the interest of justice.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not submit her reply to the Notice dated 30.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘the I.T.Act’) nor submit documents in support of her claim, as a result of which, the respondents have proceeded to pas - 4 - NC: 2024:KHC:32500 WP No. 2559 of 2024 the impugned ex-parte assessment order at Annexure-F, which deserves to be set aside. It is also submitted that the petitioner was not in a position to submit her reply to the notice issued under Section 142(1) of the I.T. Act and as such, if the impugned assessment order is set aside and the matter is remitted back to the respondents from the stage of permitting the petitioner to file reply to both the Notices issued under Section 148 of I.T.Act as well as the Notice issued under Section 142(1) of the I.T.Act, the petitioner would submit her reply along with documents and the respondents may be directed to reconsider the same in accordance with law. 4. Per contra, learned counsel for the respondents – revenue submits that there is no merit and the same is liable to be dismissed. 5. A perusal of the material on record will indicate that the petitioner did not submit her reply either to the Notice dated 30.03.2022 issued under Section 148 of I.T.Act and also to the Notices issued under Section 142(1) of the I.T.Act dated 09.05.2022 and 10.11.2022 respectively as well as to the show cause notice dated 24.01.2023, as a result of which, the - 5 - NC: 2024:KHC:32500 WP No. 2559 of 2024 respondents have passed the impugned ex-parte assessment order dated 08.02.2023, which deserves to be set aside. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned order at Annexure-F dated 08.02.2023 passed by the 3rd respondent is hereby set aside. (iii) The matter is remitted back the 3rd respondent from the stage of the petitioner submitting her reply to the Notices issued under Sections 148 and 142(1) of the I.T.Act as well as to the show cause notice at Annexure-E, which shall be considered by the 3rd respondent and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Srl. "