SRI CHOWDESHWARI CREDIT CO OP SOCIETY V. THE INCOME TAX OFFICER

WP/16365/2023

AI Insights

The case involves Sri Chowdeshwari Credit Co Op Society, represented by its CEO, challenging several orders and notices issued by the Income Tax Department concerning the assessment year 2018-19. The petitioner argued that the notices were not properly served, leading to unawareness of the proceedings. The court found that the notices were indeed not served correctly, as they were sent to an outdated address and to an unengaged Chartered Accountant, rather than the petitioner directly. Consequently, the court set aside the impugned orders and remitted the case for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748061 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: RAVI S V
• Keywords: Assessment year 2018-19; Income Tax; Notice; Penalty; Quash; Writ of Certiorari
• Section: 147; 148; 144; 270A; 271AAC(1); 148A(b); 148A(d); 272A(1)(d)

Judgement Text

" - 1 - NC: 2024:KHC:5226 WP No. 16365 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 16365 OF 2023 (T-IT) BETWEEN: SRI CHOWDESHWARI CREDIT CO OP SOCIETY NO.2918 DODDAIAHNA PALYA, HALEPALYA ROAD TIPTUR TQ TIPTUR – 572 201 PAN AAJAS6686G REGISTERED U/S THE CO OPERATIVE SOCIETIES ACT 1959 REP BY: CEO MRUTHYUNJAYA A C AGED ABOUT 54 YEARS S/O CHANNABASAVARADHYA A B NEAR RAILWAY STATION ALAAGUPPE POST TIPTUR TALUK TUMKUR DIST – 572 201 …PETITIONER (BY SRI. RAVI SHANKAR S V., ADVOCATE) AND: 1. THE INCOME TAX OFFICER INCOME TAX DEPARTMENT WARD -1 TIPTUR, TUMKUR NH-206 BANGALORE - HONAVAR ROAD TIPTUR – 572 201 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX C R BUILDING QUEENS ROAD BANGALORE – 560 001 Digitally signed by VANDANA S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:5226 WP No. 16365 of 2023 3. NATIONAL FACELESS ASSESSMENT CENTRE, ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER. (“NFAC” FOR THE SAKE OF CONVENIENCE) INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003 …RESPONDENTS (BY SRI.M.DILIP., ADVOCATE) THIS WP IS UNDER ARTICLES 226 AND 227 FILED PRAYING TO-QUASH THE ORDER U/S 148A(D) OF THE ACT DTD 27.03.2022 BEARING DIN NO.ITBA/AST/F/148A/2021-22/1041711429(1) ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE-A & ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, the petitioner seeks for the following reliefs. “i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148 (A)(d) of the Act dated 27.03.2022 bearing DIN No.ITBA/AST/F/148A/2021-22/1041711429(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 148 of the Act dated 29.03.2022 bearing DIN No.ITBA/AST/S/148_1/2021-22/1041867771 (1) issued by - 3 - NC: 2024:KHC:5226 WP No. 16365 of 2023 the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure – A1. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed U/s 147 r.w.s 144 dated 18.03.2023 bearing DIN No.ITBA/AST/S/147/2022-23/1050946942 (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 penalty notice U/s 270A of the Act dated 18.03.2023 bearing DIN No.ITBA/PNL/S/270A/2022-23/1050946970 (1) issued by the Respondent No.1 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 dated 18.03.2023 issued u/s 271AAC(1) of the ACT bearing DIN and Notice No. ITBA/PNL/S/271A/2022- 23/10509469701(1) issued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure – A4. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 24.02.2023 issued u/s 272A(1)(d) of the ACT bearing DIN and Notice No. ITBA/PNL/S/271A(1)(d)_FL/2022-23/ 1050083816 (1) issued by the Respondent No.1 for the assessment year 2018-19 herein marked as Annexure – A5. - 4 - NC: 2024:KHC:5226 WP No. 16365 of 2023 vii) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” 2. Heard the learned counsel for the petitioner and learned counsel for respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the present petition and referring to the material on record, the learned counsel for the petitioner submits that the impugned notice under Section 148A(b) of the Income Tax Act, 1961 [for short, 'the IT Act'] dated 27.03.2022 vide Annexure-A and etc., was not served upon the petitioner, but was served on the Chartered Accountant, who was neither instructed nor engaged by her for the purpose of the said proceedings. It is also contended that the said notice was served on the petitioner's earlier address and not at the address where the petitioner was residing at the time of issuance of the said notice. It was therefore submitted that the petitioner was completely unaware of the impugned proceedings pursuant to the notice under Section 148A(b) of the IT Act and consequently, the impugned order under Section 148A(d) of the IT Act dated - 5 - NC: 2024:KHC:5226 WP No. 16365 of 2023 29.03.2022 [Annexure-A1] and all consequential notices deserve to be quashed and the matter remitted back to the respondent No.1 - the Income Tax Officer, Ward, Tiptur for reconsideration afresh by providing an opportunity to the petitioner to file her objections/documents to the notice under Section 148A(b) of the IT Act and proceed further in accordance with law. 4. Per contra, learned counsel for the respondents 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 no details/particulars as to when and how the notice was served upon the petitioner is forth coming in the impugned order. In this context, except for stating that the petitioner has been duly served via E- mail, the respondent No.1 has not provided further details in the impugned order and in the light of the specific assertion on the part of the petitioner that her inability and omission to file reply to the notice under Section 148A(b) of the IT Act and contest the proceedings, was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate - 6 - NC: 2024:KHC:5226 WP No. 16365 of 2023 to adopt a justice oriented approach and provide one more opportunity to the petitioner and set aside the impugned order dated 27.03.2022 under Section 148A(d) of the IT Act and remit the matter back to the concerned respondent for reconsideration afresh in accordance with law. 6. In the result, the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order dated 27.03.2022 under Section 148A(d) of the IT Act [Annexure-A], the Notice dated 29.03.2022 under Section 148 of the IT Act [Annexure-A1] and the Assessment Order dated 18.03.2023 under Section 147 read with Section 144 of the IT Act [Annexure-A2], are hereby set aside. (iii) The matter is remitted back to the respondent No.1 - the Income Tax Officer, Ward, Tiptur from the stage of issuance of notice under Section 148A(d) of the IT Act. - 7 - NC: 2024:KHC:5226 WP No. 16365 of 2023 (iv) Liberty is reserved liberty in favour of the petitioner to file his response/reply, documents etc., to the said notice which shall be considered by the respondents who shall provide sufficient and reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. Sd/- JUDGE DHA List No.: 2 Sl No.: 33 "