SUPER POINTS BAZAR V. INCOME TAX OFFICER

WP/21175/2024

AI Insights

The case involves Super Points Bazar, a partnership firm, represented by its partner Nijamuddin, who filed a writ petition against the Income Tax Officer and other respondents challenging several notices and orders issued for the assessment year 2019-20. The petitioner contended that they did not receive the initial notice under Section 148A(b) of the Income Tax Act, 1961, which led to their inability to respond and submit necessary documents. The court, considering the petitioner's claim of bona fide reasons for not responding, decided to set aside the impugned orders and notices and remand the matter back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 764332 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 11-09-2024
• 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 2019-20; Income Tax; Notice Quashing; Preliminary Hearing; Writ of Certiorari
• Section: 147; 148; 144; 274; 151; 144B; 271AAC(1); 148A(b); 148A(d); 272A(1)(d)

Judgement Text

" - 1 - NC: 2024:KHC:37397 WP No. 21175 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11THDAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.21175 OF 2024 (T-IT) BETWEEN: SUPER POINTS BAZAR A PARTNERSHIP FIRM REPRESENTED BY ITS PARTNER NIJAMUDDIN, VANIJYA BHAVAN FIRST FLOOR, B M ROAD NIJAMUDDIN, AZAD ROAD SAKLESHPUR, HASSAN – 573 134. NIJAMUDDIN AGED ABOUT 45 YEARS S/O ZIAULLA KHAN 180/2, AZAD ROAD SAKALESHPURA – 573 201. …PETITIONER (BY SRI. RAVI SHANKAR S V., ADVOCATE) AND: 1. INCOME TAX OFFICER WARD – 1 AND TPS HASSAN – 573 201 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. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:37397 WP No. 21175 of 2024 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) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(B) OF THE ACT DATED 21/03/2023 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2022-23/1051071045(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANNEXURE – A AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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 notice under Section 148A(b) of the Act, dated 21/03/2023 bearing DIN No.ITBA/AST/F/148A(SCN)/2022- 23/1051071045(1), issued by the Respondent No.1 for the assessment year 2019-20 herein marked as Annexure - A. - 3 - NC: 2024:KHC:37397 WP No. 21175 of 2024 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 29/03/2023, bearing DIN No.ITBA/AST/F/148A/2022-23/1051600419(1) issued by the Respondent No.1 for the assessment year 2019-20 herein marked as Annexure A1. 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 29/03/2023 bearing DIN No. ITBA/AST/S/148_1/2022-23/1051600725(1) issued by the Respondent No.1 for the assessment year 2019- 20 herein marked as Annexure A2. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the approval order under Section 151 of the Act dated 29/03/2023 bearing DIN No. ITBA/AST/S/118/2022-23/1051586744(1), Issued by the Respondent No.3 for the assessment year 2019-20 herein marked as Annexure - A3. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed Under section147 r.w.s 144, 144B dated 14/02/2024 bearing DIN No. ITBA/AST/S/147/2023- 24/1060934560(1) issued by the Respondent No. 2 for the assessment year 2019-20 herein marked as Annexure-A4. - 4 - NC: 2024:KHC:37397 WP No. 21175 of 2024 vi) 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 14/02/2024 bearing DIN No. ITBA/PNL/S/272A(1)(D) _FL/2023-24/ 1060933398(1), Issued by the Respondent No.2 for the assessment year 2019-20 herein marked as Annexure A5. vii) 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 271AAC(1) of the Act dated 14/02/2024 bearing DIN No. ITBA/PNL/S/271AAC(1)/ 2023-24/1060934602(1), issued by the Respondent No.2 for the assessment year 2019-20 herein marked as Annexure - A6. viii) 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 notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 21.03.2023 was not received by - 5 - NC: 2024:KHC:37397 WP No. 21175 of 2024 petitioner and it 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 mission 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 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 documents to Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and if - 6 - NC: 2024:KHC:37397 WP No. 21175 of 2024 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 29.03.2023 passed under Section 148A(d) of the IT Act and subsequent notice / orders, 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) notice and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures A1, A2, A3, A4, A5 and A6 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 – A dated 21.03.2023. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the - 7 - NC: 2024:KHC:37397 WP No. 21175 of 2024 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 BMV* List No.: 1 Sl No.: 89 "