Venkata Iyyappa Rajanna V. The Income Tax Officer Ward -6(3)(1) and National Faceless Assessment Centre and The Principal Chief Commissioner of Income Tax

WP/12618/2024

AI Insights

The case involves a writ petition filed by Venkata Iyyappa Rajanna against multiple respondents including the Income Tax Officer and the National Faceless Assessment Centre, challenging the validity of several notices and orders issued for the assessment year 2015-16. The petitioner contended that the notice under Section 148-A(b) of the Income Tax Act, 1961, issued with an unreasonably short response time, violated the statutory requirement of providing a minimum of 7 days for a reply. The court agreed with the petitioner's contention, leading to the setting aside of the notice and all subsequent orders.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 810714 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 04-06-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: RAVISHANKAR
• Keywords: Notice Quashing; Violation of natural justice; Writ of Certiorari; Short Time for Reply
• Section: 147; 144; 271(1)(c); 271F; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:19107 WP No. 12618 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 12618 OF 2024 (T-IT) BETWEEN: 1. VENKATALA IYYAPPA RAJANNA 1298 CHOWDAPPA BUILDING, GR CYBER CENTRE Ist MAIN Ist CROSS GANDHI NAGAR, OPP KINTO SCHOOL, YELAHANKA OLD TOWN BANGALORE NORTH - 560 064 PAN: BMNPR7459E PRESENTLY AT: VENKATALA IYYAPPA SRI. RAJANNA AGED ABOUT 53 YEARS, S/O IAYYAPPA NO.5, 29th A CROSS, IYAPPA BADAVANE, Ist MAIN ROAD, MARUTHINAGARA YELAHANKA - 560 064 … PETITIONER (BY SRI. RAVI SHANKAR S V., ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD -6(3)(1) Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:19107 WP No. 12618 of 2024 BMTC BUILDING, KORAMANGALA BANGALORE - 560 095 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 3. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, THE OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX CR BUILDING, QUEENS ROAD, BANGALORE - 560 001 … RESPONDENTS (BY SRI. M. DILIP, JR. STANDING COUNSEL) *** THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I) QUASHING THE NOTICE UNDER SECTION 148A(b) OF THE ACT DTD 20.03.2022 BEARING DIN NO. ITBA/AST/F/148A(SCN)/2021- 22/1041103146(1) ISSUED BY THE R-1 FOR THE ASSESSMENT YEAR 2015-16 HEREIN MARKED AS ANNEXURE-A AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2024:KHC:19107 WP No. 12618 of 2024 ORDER Petitioner has sought for issuance of writ of certiorari to quash the notice under Section 148-A(b) of the Income Tax Act, 1961 (for short the Act’) at Annexure-A issued for the assessment year 2015-16. Petitioner has also sought for setting aside of the order under Section 148- A(d) of the Act at Annexure-A1; notice under Section 148 of the Act at Annexure-A2; order under Section 147 read with Section 144 at Annexure-A3; order of penalty under Section 271(1)(c) of the Act at Annexure-A4 and the order of penalty under Section 271F of the Act at Annexure-A5. 2. The primary contention of the petitioner is that notice under Section 148-A(b) is issued on 20.03.2022 requiring reply to be filed on 25.03.2022. It is submitted that such short time afforded for reply is in violation of the statutory mandate of Section 148-A(b) which requires affording of time period of not less than 7 days and accordingly, it is submitted that in light of such short time available, petitioner was not in a position to reply and all - 4 - NC: 2024:KHC:19107 WP No. 12618 of 2024 subsequent proceedings pursuant to such notice are required to be set aside on the ground of violation of principles of natural justice. 3. It must be seen that under Section 148-A(b) of the Act, the time that is afforded to make out response to the notice should not be less than 7 days. Section 148-A(b) reads as hereunder: \"(b) provide an opportunity of being heard to the assessee, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a).\" 4. Admittedly, in the present case, notice issued at Annexure-A is on 20.03.2022 calling for reply by 25.03.2022. In light of the same, the contention of prejudice having occurred by such short time is to be accepted in light of breach of time period prescribed under - 5 - NC: 2024:KHC:19107 WP No. 12618 of 2024 Section 148-A(b) which provides that a period of not less than 7 days to be afforded. 5. Accordingly, the notice at Annexure-A is set aside and consequentially, all proceedings pursuant thereto i.e, order under Section 148-A(d) of the Act at Annexure-A1; notice under Section 148 of the Act at Annexure-A2; order under Section 147 read with Section 144 at Annexure-A3; order of penalty under Section 271(1)(c) of the Act at Annexure-A4 and the order of penalty under Section 271F of the Act at Annexure-A5 are set aside. Needless to state that liberty is reserved for the Revenue to take action in accordance with law as is permissible as regards the subject matter of notice under Section 148-A(b) of the Act. 6. In light of the above, petition is disposed off. Sd/- JUDGE VP "