SMT NEELAPPA PREMA V. THE PRINCIPAL COMMISSIONER

WP/10732/2023

AI Insights

The case involves Smt. Neelappa Prema, the petitioner, who challenged an ex parte order passed by the Income Tax Officer under Section 147 read with Section 144 of the Income Tax Act, 1961. The petitioner had filed her income tax return for the assessment year 2018-19, but did not respond to a notice under Section 142(1), leading to the impugned order. The court found that despite the respondents' assertion of compliance with the principles of natural justice, the petitioner had valid reasons for her non-response. Consequently, the court set aside the impugned order and remitted the case back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 732593 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: MALLAHA K
• Keywords: Ex parte order; Income Tax; Natural Justice; Reconsideration; Writ petition
• Section: 147; 144; 142(1); 226; 227

Judgement Text

"- 1 - NC: 2024:KHC:2899 WP No. 10732 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JANUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 10732 OF 2023 (T-RES) BETWEEN: SMT NEELAPPA PREMA W/O SRI. YUVARAJ, AGED ABOUT 48 YEARS, R/AT NO.161, 4TH CROSS, 8TH MAIN ROAD, 14TH BLOCK, NAGARBHAVI, BENGALURU – 560 091. PAN NO.ADWPP7294G. …PETITIONER (BY SRI MALLAHA RAO K., ADVOCATE) AND: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX, C R BUILDING NO.1, QUEENS ROAD, BANGALORE-560001. 2. THE INCOME TAX OFFICER CENTRAL CIRCLE-2(4), BANGALORE. …RESPONDENTS (BY SRI. M.DILIP, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 30/03/2023 PASSED BY 2ND RESPONDENT IN ORDER NO.ITBA/AST/S/147/2023- Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:2899 WP No. 10732 of 2023 23/1051692674(1) VIDE ANNEXURE-D AND DIRECT THE RESPONDENT AUTHORITY TO REFRAIN FROM FURTHER PROCEEDINGS AND TAKE SUCH NECESSARY MEASURES / STEPS IN RESPECT OF THE IMPUGNED ORDER DATED 30/03/2023 PASSED BY 2ND RESPONDENT IN ORDER NO.ITBA/AST/S/147/2022-23/1051692674(1) VIDE ANNEXURE –D AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER This petition is directed against the impugned order dated 30.03.2023 vide Annexure-D passed by the respondent No.2 under Section 147 read with Section 144 of the Income Tax Act, 1961 [for short, ‘the Act’]. 2. Heard the learned counsel for the petitioner and the learned counsel for the respondents and perused the material on record. 3. The material on record discloses that the petitioner is an individual assessee who filed return of income for the assessment year 2018-19. Pursuant to the impugned proceedings, the respondents are said to have - 3 - NC: 2024:KHC:2899 WP No. 10732 of 2023 issued notice under Section 142[1] of the Act and since the petitioner had not submitted any reply to the said notice/show cause notice, the respondents proceeded to pass the impugned ex parte order, aggrieved by which the petitioner is before this Court by way of present petition. 4. A perusal of the impugned order will indicate that the respondents have come to the conclusion that principles of natural justice had been complied with since sufficient and reasonable opportunity had been provided to the petitioner prior to passing the impugned order. However, in view of the specific assertion on the part of the petitioner that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to submit reply along with the documents to the notice/show cause notice and participate in the proceedings, in order to provide one more opportunity to the petitioner and by adopting justice oriented approach, I deem it just and appropriate to set aside the impugned order, and remit the matter back to the respondent - 4 - NC: 2024:KHC:2899 WP No. 10732 of 2023 for reconsideration afresh in accordance with law. In the result, the following: ORDER [a] The petition is hereby allowed. [b] The impugned order dated 30.03.2023 [Annexure-D] of the respondent No.2 is hereby quashed. [c] The matter is remitted back to the respondent No.2 for reconsideration afresh in accordance with law. [d] Liberty is reserved in favour of the petitioner to submit his reply, documents etc., before the respondent No.2, who shall consider the same and proceed further in accordance with law after providing an opportunity of personal hearing to the petitioner. SD/- JUDGE AN/- "