SREE FINANCIERS V. INCOME TAX OFFICER

WP/26215/2024

AI Insights

The case involves Sree Financiers, a registered partnership firm, challenging several notices and orders issued by the Income Tax Department concerning the assessment year 2018-19. The petitioner sought to quash a notice under Section 148A(b) and subsequent orders under Sections 148A(d) and 147 read with 144, 144B, and 274 read with 272A(1)(d) of the Income Tax Act. The petitioner argued that they did not receive the initial notice and thus could not respond, which led to the subsequent orders and notices. The court, considering the petitioner's claim of not receiving the notice and the circumstances cited, decided to set aside the impugned orders and remit the matter back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747691 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: THIRUMALESH
• Assessee Lawyers: RAVISHANKAR
• Keywords: Assessment year 2018-19; Income Tax; Notice Quashing; Section 148A; Writ petition
• Section: 147; 144; 274; 144B; 148A(b); 148A(d); 272A(1)(d)

Judgement Text

" - 1 - NC: 2024:KHC:39864 WP No. 26215 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 26215 OF 2024 (T-IT) BETWEEN: SREE FINANCIERS REGISTERED PARTNERSHIP FIRM NIO. 45/4, BANNURU ROAD, SIDDARHTA NAGARA POST, YARAGANAHALLI, MYSORE 570 011. PAN: CXSPM4931M. REPRESENTED BY CHIKKARANGE GOWDA VENKATAPPA MANAGING PARTNER, AGED ABOUT 63 YEARS, S/O CHIKKARANGE GOWDA, NO. 165/J, ALANAHALLI, T N PURA MAIN ROAD, SIDDARTHANAGAR S O, MYSORE - 570 011. …PETITIONER (BY SRI. RAVI SHANKAR S V.,ADVOCATE) AND: 1. INCOME TAX OFFICER WARD -1(1), REAC, MYSORE, MYSORE – 570 008. 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER INCOME TAX DEPARTMENT, MINISTRY OF FINANCE ROOM NO. 401, 2ND FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX 3 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX -3, BMTC BUILDING, KORAMANGALA, BANGALORE 560 095. …RESPONDENTS (BY SRI.THIRUMALESH M.,ADVOCATE) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:39864 WP No. 26215 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I) QUASHING THE NOTICE UNDER SECTION 148A(B) OF THE ACT, DATED 26/03/2022 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2021-22/1041690489(1), ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE – A AND II) QUASHING THE ORDER UNDER SECTION 148A(D) OF THE ACT, DATED 30/04/2022, BEARING, DIN NO.ITBA/AST/F/148A/2022-23/1042918830(1) SUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE A1 AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: 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 direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act, dated 26/03/2022 bearing DIN No.ITBA/AST/F/148A(SCN)/2021-22/1041690489(1), issued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure - A. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act, dated 30/04/2022, bearing, DIN No.ITBA/AST/F/148A/2022-23/1042918830(1) sued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure A1. - 3 - NC: 2024:KHC:39864 WP No. 26215 of 2024 iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act dated 30/04/2022 bearing DIN No. ITBA/AST/S/148_1/2022-23/1042918891(1) issued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure - A2. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed Under Section 147 r.w.s 144, 144B dated 19/03/2024 bearing DIN No. ITBA/AST/S/147/2023-24/1062886081(1) issued by the Respondent No. 3 for the assessment year 2018-19 herein marked as Annexure - A3. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice under Section 274 r.w.s 272a(1) (d) of the Act dated 19/03/2024 bearing DIN No. ITBA/PNL/S/272A(1)(d).FL/2023- 24/1062883081(1), issued by the Respondent No.2 for the 2018-19 herein marked as Annexure -A4. vi) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents-revenue and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the Notice issued by the - 4 - NC: 2024:KHC:39864 WP No. 26215 of 2024 respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 26.03.2022 was not received by the petitioner and he was not aware of the notice and consequently, petitioner could not submit its reply / response along with documents to the said Notice. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and as such, if one more opportunity is provided to the petitioner to do so by setting aside the impugned orders and notices, the petitioner would do so and respondents may be directed to proceed further in accordance with law. 4. Per contra, learned counsel for the respondents-revenue submits that there is no merit in the petition and that the same is liable to be dismissed. 5. A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has not submitted reply / response along with documents to Section 148A(b) notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that its inability and omission to submit a reply along with - 5 - NC: 2024:KHC:39864 WP No. 26215 of 2024 documents to Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and if one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure-A1 dated 30.04.2022 passed under Section 148A(d) of the I.T Act and subsequent notices / orders, etc., and remit the matter back to the 1st respondent for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 148A(b) notice and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) Petition is hereby allowed. (ii) The impugned orders / notices at Annexures-A1, A2, A3 and A4 are hereby set aside. (iii) Matter is remitted back to the 1st respondent for reconsideration afresh in accordance with law from the stage of submitting of reply to the Notice issued under Section 148A(b) of the I.T Act at Annexure-A dated 26.03.2022. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the 1st - 6 - NC: 2024:KHC:39864 WP No. 26215 of 2024 respondent, who shall consider the same and provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Srl. "