Usman Asif Baig V. Principal Commissioner of Income Tax and Income Tax Officer, Ward-1

WP/17375/2024

AI Insights

In this case, Usman Asif Baig, the petitioner, challenged a Notice and an Order issued by the Income Tax Department under various sections of the Income Tax Act, 1961. The Notice under Section 148 was alleged to be arbitrary and issued without proper consideration, while the Order under Section 148A(d) was contested due to procedural defects, including the non-signing of the Notice. The petitioner argued that the Notice was received belatedly, which prejudiced his ability to respond within the required timeframe. The court, acknowledging the procedural shortcomings and the petitioner's right to a fair hearing, set aside both the Notice and the Order, directing the matter back to the stage of the initial Notice for a proper response.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 815906 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 10-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: PRAVEEN KUMAR
• Keywords: Income Tax; Legal Proceedings; Notice; Order; Technical defects; Writ petition
• Section: 148; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:26697 WP No. 17375 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 17375 OF 2024 (T-IT) BETWEEN: USMAN ASIF BAIG S/O USMAN BAIG, AGED ABOUT 43 YEARS NO.1, 157/C, BANGALORE ROAD, KOLLEGALA, KARNATAKA CHAMARAJANAGARA DISRICT-571440, PRESENTLY R/AT: NO.13, NEW POST OFFICE ROAD, YADIYUR, JAYANGARA 7TH BLOCK, BANGALORE-560082. …PETITIONER (BY SRI. PRAVEEN KUMAR, ADVOCATE) AND: 1. PRINCIPAL COMMISSIONER OF INCOME TAX, 2ND FLOOR, LIC BUILDING, SAMPIGE ROAD, MALLESHWARAM, BENGALURU-560003. 2. INCOME TAX OFFICER, WARD-1, ITO CHAMARAJANAGAR-571440 …RESPONDENTS (BY SRI. M.THIRUMALESH, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE / ORDER DATED 25/03/2024 BEARING DIN NO. ITBA/AST/F/148A/2023-24/1063325491(1) VIDE ANNEXURE-A AS ARBITRARY, ILLEGAL AND ISSUED WITHOUT APPLICATION OF MIND AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:26697 WP No. 17375 of 2024 ORDER The petitioner has sought for setting aside the Notice under Section 148 of the Income Tax Act, 1961 (for short 'the Act') at Annexure-A. It is further contended that in light of the technical defects such as non-signing of the Notice under Section 148 of the Act, same is required to be set aside. 2. At the time of hearing of the matter, petitioner has also sought to assail the Order passed under Section 148A(d) of the Act at Annexure-A1. Such oral request is made at the time of hearing of the petition and the petitioner was permitted to amend the prayer column as well as assign separate annexure number to the Order under Section 148A(d) of the Act. 3. It is the case of the petitioner that Notice under Section 148A(b) of the Act, though issued on 13.03.2024 seeking for response on 21.03.2024, which reached the petitioner belatedly as same Notice was redirected to the petitioner's address at Bengaluru and accordingly, the time - 3 - NC: 2024:KHC:26697 WP No. 17375 of 2024 available to make out reply to the Notice under Section 148A(b) of the Act, in effect being less than seven days, had caused serious prejudice. 4. It is submitted that if the petitioner is afforded with an opportunity to make out his reply to Notice under Section 148A(b) of the Act, the petitioner would be in a position to demonstrate that proceedings are required to be dropped. 5. Taking note of the contention raised, matter requires re-consideration by relegating the petitioner to the stage of reply to Notice under Section 148A(b) of the Act. Accordingly, Notice at Annexure-A and the Order at Annexure-A1 are set aside; the matter is relegated to the stage of reply to Notice under Section 148A(b) of the Act. 6. Though the petitioner had initially assailed only Order passed under Section 148A(d) of the Act. However, at the time of hearing of the matter, case is made out for affording an opportunity to the petitioner to make out reply - 4 - NC: 2024:KHC:26697 WP No. 17375 of 2024 to Notice under Section 148A(b) of the Act and accordingly the consequential proceedings are set aside. All contentions are kept open. The petitioner to appear before respondent No.2 on 05.08.2024. Sd/- JUDGE SMJ List No.: 1 Sl No.: 22 "