Sri. Janardhan Vittal Deokar V. Assessment Unit Income Tax Department and The Income Tax Officer, Ward 3(1)(1), Bengaluru and The Income Tax Officer, Ward 3(2)(1), Bengaluru and The Principal Chief Commissioner of Income \\u2013Tax, Karnataka and Goa

WP/23556/2024

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The case involves Sri. Janardhan Vittal Deokar, the petitioner, who challenged various orders and notices issued by the Income Tax Department concerning the assessment year 2016-17. The petitioner sought to quash the assessment order, computation sheets, demand notices, and penalty orders issued under different sections of the Income Tax Act. The primary contention was the non-receipt of certain notices under Section 148A(b), which prevented the petitioner from responding and submitting necessary documents. The respondents argued that the petition lacked merit. The court, after hearing both parties, decided to set aside the impugned orders and remit the matter for fresh consideration, providing the petitioner an opportunity to respond.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 798315 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: ANNAMALAI
• Keywords: Assessment Order; Computation Sheet; Demand notice; Income Tax; Penalty order; Show cause notice; Writ petition
• Section: 147; 148; 144; 271(1)(c); 274; 271(1)(b); 271F; 144B; 148A(b); 148A(d); 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:39313 WP No. 23556 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 23556 OF 2024 (T-IT) BETWEEN: 1. SRI. JANARDHAN VITTAL DEOKAR S/O SRI. VITTAL SAKARAM DEOKAR, AGED ABOUT 62 YEARS, B2-271, SOBHA IVORY APARTMENT, 7TH FLOOR, ST. JOHN'S ROAD, ULSOOR, BENGALURU - 560 042. PAN AARPD9721C. …PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME TAX DEPARTMENT, REP. BY 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. 2. THE INCOME TAX OFFICER, WARD 3(1)(1), BENGALURU, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU – 560095. 3. THE INCOME TAX OFFICER, WARD 3(2)(1), BENGALURU, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, Digitally signed by DEVIKA M Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:39313 WP No. 23556 of 2024 NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560095. 4. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME –TAX, KARNATAKA AND GOA, C.R.BUILDING, QUEENS ROAD, BENGALURU-560 001. …RESPONDENTS (BY SRI M.THIRUMALESH, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED UNDER SECTION 147 RWS 144 RWS 144B OF THE ACT DATED 12.02.2024 BEARING DIN NO.ITBA/AST/S/147/2023-24/1060822498(1) ISSUED BY THE R-1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNX-A1 AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order passed under Section 147 rws. 144 rws. 144B of the Act dated 12/02/2024 bearing DIN No.ITBA/AST/S/147/2023- 24/1060822498(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A1. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 12/02/2024 bearing DIN & Document - 3 - NC: 2024:KHC:39313 WP No. 23556 of 2024 No.ITBA/AST/S/114/2023-24/1060822543(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A2. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 12/02/2024 issued under section 156 of the Act bearing DIN & Notice No. ITBA/AST/S/156/2023- 24/1060822532(1) issued by the Respondent No.1 for the assessment year 2016-17 marked as Annexure-A3. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order passed under section 274 rws. 271(1)(b) of the Act dated 22/07/2024 bearing DIN No.ITBA/PNL/F/271(1)(b)/2024-25/1066873442(1) issued by the Respondent No.1 for the assessment year 2016-17 marked as Annexure-A4. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 22.07.2024 bearing DIN & Order No.ITBA/PNL/F/271(1)(b)/2023-24/1060822581 (1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A5. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 22/07/2024 issued under Section 156 of the Act bearing DIN & Notice No. ITBA/PNL/S/156/2024- 25/1066870535 (1) issued by the Respondent No.1 for the assessment year 2016-17 marked as Annexure-A6. - 4 - NC: 2024:KHC:39313 WP No. 23556 of 2024 vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order passed under section 271F of the Act dated 22/07/2024 bearing DIN & No.ITBA/PNL/F/271F/2024-25/1066873566(1) issued by the Respondent No.1 for the assessment year 2016-17 marked as Annexure-A7 viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 22/07/2024 bearing DIN & Order No.ITBA/PNL/S/271F/2023-24/1060822583(1) issued by the Respondent No.1 for the assessment year 2016- 17 herein marked as Annexure-A8. ix) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 22/07/2024 issued under Section 156 of the Act bearing DIN & Notice No.ITBA/PNL/S/156/2024- 25/1066870630(1) issued by the Respondent No.1 for the assessment year 2016-17 marked as Annexure-A9. x) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order passed under Section 271(1)(c) of the Act dated 22/07/2024 bearing DIN & No.ITBA/PNL/F/271(1)(c)/2024- 25/1066873807(1) issued by the Respondent No.1 for the assessment year 2016-17 marked as Annexure- A10. xi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 22/07/2024 bearing DIN & Order - 5 - NC: 2024:KHC:39313 WP No. 23556 of 2024 No.ITBA/PNL/S/271(1)(c) / 2023-24/ 1060822582(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A11. xii) Issue a writ or Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 22/07/2024 issued under Section 156 of the Act bearing DIN & Notice No.ITBA/PNL/S/156/2024- 25/1066870928(1) issued by the Respondent No.1 for the assessment year 2016-17 marked as Annexure- A12. xiii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 05/02/2023 issued under Section 148A(b) of the Act bearing DIN & Notice No.ITBA/AST/F/148A(SCN)/2022- 23/1049419330(1) issued by the Respondent No.3 for the assessment year 2016-17 marked as Annexure-B1. xiv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 17/02/2023 issued under Section 148A(b) of the Act bearing DIN & Notice No.ITBA/AST/F/148A(SCN)/2022- 23/1049869259(1) issued by the Respondent No.2 for the assessment year 2016-17 marked as Annexure-B2. xv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed under Section 148A(d) of the Act dated 20/03/2023 bearing DIN & Notice No.ITBA/AST/F/148A/2022- 23/1051022053(1) issued by the Respondent No.2 for - 6 - NC: 2024:KHC:39313 WP No. 23556 of 2024 the assessment year 2016-17 herein marked as Annexure-B3. xvi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice dated 21/03/2023 issued under Section 148 of the Act bearing DIN & Notice No.ITBA/AST/148_1/2022-23/1051025784(1) issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure-B4. xvii) 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 and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that notices issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 05.02.2023 and 17.02.2023 were not received by petitioner and he was not aware of the notices 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 - 7 - NC: 2024:KHC:39313 WP No. 23556 of 2024 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, notices and computation sheets, 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 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 his inability and omission to submit a reply along with 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-B3 dated 20.03.2023 passed under Section 148A(d) of the IT Act and subsequent notices/ - 8 - NC: 2024:KHC:39313 WP No. 23556 of 2024 orders/computation sheets etc., and remit the matter back to respondent No.1 for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 148A(b) notices and to proceed further in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices/ orders/computation sheets at Annexures A1, A2, A3, A4, A5, A6, A7, A8, A9, A10, A11, A12, B3 and B4 are hereby set aside. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section 148A(b) of the IT Act at Annexure-B1 dated 05.02.2023. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE ST/List No.: 1 Sl No.: 96 "