THOTADA BELEGARARA SAHAKARA V. INCOME TAX OFFICER WARD 1

WP/23872/2024

AI Insights

The case involves Thotada Belegarara Sahakara Sangha Niyamita Gundlupet, a cooperative society engaged in lending to its members, which filed a writ petition against various orders and notices issued by the Income Tax Department. The petitioner contended that they did not receive a notice under Section 148A(b) of the Income Tax Act, 1961, and thus could not respond to it, leading to subsequent orders and notices being issued. The court found that the petitioner had not been given a fair opportunity to respond due to the non-receipt of the initial notice and thus set aside the subsequent orders and notices, remitting the matter back for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 752339 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 10-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: BALARAM RAO
• Keywords: Impugned order; Income Tax; Notice of demand; Writ of Certiorari; Writ of Mandamus; Writ of prohibition
• Section: 147; 144B; 148A(b); 148A(d); 156; 226(3)

Judgement Text

" - 1 - NC: 2024:KHC:37061 WP No. 23872 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 23872 OF 2024 (T-IT) BETWEEN: THOTADA BELEGARARA SAHAKARA SANGHA NIYAMITA GUNDLUPET (A CO OPERATIVE SOCIETY ENGAGED LENDING TO ITS MEMBERS) HAVING ITS BUSINESS AT, TBSS BUILDING CHAMARAJANAGAR, ROAD, GUNDLUPET TOWN, CHAMARAJANGAR 571111. PAN NO. AACAT9287F REPRESENTED BY ITS SECRETARY M B SREEKANTAPPA, S/O M BASAVANNA, AGED ABOUT 59 YEARS, R/AT NO. 51 MADAPATTANA VILLAGE, SOMANAHALLI POST, BEGUR, CHAMARAJANAGAR 571 109. …PETITIONER (BY SRI. BALARAM R RAO.,ADVOCATE) AND: 1. INCOME TAX OFFICER WARD 1 MPA COMPLEX, CAR STREET, CHAMARAJANAGAR – 571 313. 2. ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX NATIONAL FACELESS APPEALS CENTRE, INCOME TAX DEPARTMENT, DELHI, 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:37061 WP No. 23872 of 2024 3. BRANCH MANAGER THE MYSORE AND CHAMARAJANAGARA DISTRICT CO-OPERATIVE CENTRAL BANK LIMITED MYSORE –OOTY MAIN ROAD, NEAR TALUK PANCHAYAT OFFICE, GUNDLUPETE CHAMARAJANAGAR – 571 111. 4. BRANCH MANAGER - STATE BANK OF INDIA PB NO1C382 GUNDLUPET CHAMARAJANAGAR ROAD TERAKANABMI CHAMARAJANAGAR – 571 123. 5. BRANCH MANAGER BANK OF BARODA S.R. TOURIST COMPLEX BEGUR GUNDLUPET, TALUK CHAMARAJANAGAR DISTRICT – 571 109. 6. BRANCH MANAGER BANK OF BARODA NO.33/3313/3,B.N. ROAD GUNDLUPET, CHAMARAJANAGAR DISTRICT GUNDLUPET – 571 111. …RESPONDENTS (BY SRI.M. THIRUMALESH, ADVOCATE FOR R-1 & R-2) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO WRIT OF CERTIORARI OR WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT ORDER OR DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA,CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE IMPUGNED ORDER UNDER SECTION 148A(D) OF THE ACT DT. 28.02.2023 IN DIN. ITBA/AST/F/148A/2022- 23/1050266725(1) (ANNEXURE B), IMPUGNED ORDER UNDER SECTION 147 R.W.S. 1448 OF ACT DATED 05.03.2024 IN DIN. ITBA/AST/S/147/2023- 24/1062027430(1) (ANNEXURE Y) AND NOTICE OF DEMAND ISSUED U/S. 156 OF THE ACT DATED 05.03.2024 IN DIN. ITBA/AST/S/156/2023- 24/1062027563(1) (ANNEXURE Y1) AND IMPUGNED NOTICE U/S. 226(3) OF THE ACT DATED 11.07.2024 IN DIN. IT-BA/RCV/S/226(3)-1/2024- 25/1066610430(1)(ANNEXURE ZC) FOR THE AY 2019-20. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2024:KHC:37061 WP No. 23872 of 2024 CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks for the following reliefs:- “ i. Writ certiorari or writ in the nature of certiorari or any other appropriate writ order or direction under Article 226 of the Constitution of India; calling for the records of the Petitioners case and after examining the legality and validity thereof be pleased to quash and set aside the impugned notice issued u/s. 148A(b) of the Act dt.: 07.02.2023 in DIN: ITBA/AST/F /148A (SCN)/2022-23/ 1049490691(1) (ANNEXURE A), order under Section 148A(d) of the Act dt.: 01.03.2023 in DIN: ITBA/AST/F/148A/2022- 23/1050266725(1) (ANNEXURE B), impugned order under Section 147 r.w.s. 144B of Act dated 05.03.2024 in DIN PBA/AST/S/147/2023-24/106202743013 (Annexure Y) and Notice of Demand issued u/s. 156 of the Act dated 05.03.2024 in DIN: ITBA/AST/5/156/2023- 24/1062027563(1) (Annexure V1) and impugned Notice /s 226(3) of the Act dated 11.07.2024 in DIN ITBA/RCV/S/226(3) 1/2024-25/1066610430(1) (Annexure AC) 25/1066610446(1) DIN TTBA/BCV/5/226(3) 1/2024- (Annexure AD), DIN: ITBA/RCV/S/226(3) 1/2024- 25/1066610432(1) (Annexure AE) and DIN: ITBA/RCV/5/226(3) 1/2024- 25/1066610439(1) (Annexure AP) for the AV 2019-20. ii. Writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction - 4 - NC: 2024:KHC:37061 WP No. 23872 of 2024 under Article 226 of Constitution of India ordering and directing the Respondents by themselves by their subordinates, servants or agents to withdraw and cancel impugned notice issued u/s. 148A(b) of the Act dt.: 07.02.2023 in DIN: ITBA/AST/F/148A(SCN)/2022- 23/1049490691(1) (ANNEXURE A), order under Section 148A(d) of the Act dt.: 01.03.2023 in DIN: ITBA/AST/F/148A/2022- 23/1050266725(1) (ANNEXURE B), impugned order under Section 147 r.w.s. 144B of Act dated 05.03.2024 in DIN: ITBA/AST/S/147/2023-24/1062027430(1) (Annexure Y),Notice of Demand Issued u/s 156 of the Act dated 05.03.2024 in DIN: ITBA/AST/S/156/2023- 24/1062027563(1) (Annexure Y1) and Impugned Notice u/s. 226(3) of the Act dated 11.07.2024 in DIN: ITBA/RCV/S/226(3)_1/2024-25/1066610430(1) (Annexure ZC) for the AY 2019-20 and iii. A writ of Prohibition or a writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of Constitution of India prohibiting and restraining the Respondents by themselves their sub ordinates, servants and agents from taking any action in furtherance or consequent to impugned order under Section 147 r.w.s. 144B of Act dated 05.03.2024 in DIN: ITBA/AST/S/147/2023- 24/1062027430(1) (Annexure Y), Notice of Demand issued u/s. 156 of the Act dated 05.03.2024 in DIN: ITBA/AST/S/156/2023-24/1062027563(1) (Annexure Y1) and order setting aside the impugned Notices u/s. 226(3) of the Act dated 11.07.2024 in DIN: ITBA/RCV/S/226(3)_1/2024-25/1066610430(1) (ANNEXURE AC), DIN: ITBA/RCV/S/226(3)_1/2024-25/1066610432(1) - 5 - NC: 2024:KHC:37061 WP No. 23872 of 2024 (ANNEXURE-AE) AND DIN: ITBA/RCV/S/226(3)_1/2024- 25/1066610439(1) (ANNEXURE-AF) for the AY 2019-20 passed by Respondents. iv. Grant the interim relief in terms of prayer (iii) above, and v. Issue such other order, writ or direction as this Hon’ble court deems fit.” 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 respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘I.T Act’), dated 07.02.2023 was not received by 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 - 6 - NC: 2024:KHC:37061 WP No. 23872 of 2024 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 at Annexure-B 01.03.2023 passed under Section 148A(d) will indicate that necessary details / material particulars as regards service of notice under Section 148A(b) upon the petitioner is not forthcoming in the impugned order. It is an undisputed fact that the 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-B dated 01.03.2023 passed under Section 148A(d) of the I.T Act and - 7 - NC: 2024:KHC:37061 WP No. 23872 of 2024 subsequent notices / orders, etc., and remit the matter back to 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-B, Y, Y1, AC, AD, AE , AF and ZC 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 Show Cause Notice issued under Section 148A(b) of the I.T Act at Annexure-A dated 07.02.2023. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the 1st 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. "