VENSAR ENTERPRISES V. INCOME TAX OFFICER

WP/24193/2024

AI Insights

In this case, Vensar Enterprises, represented by its partner Venugopal, filed a writ petition against the Income Tax Department officials, challenging the approval and subsequent orders under Section 148A(d) of the Income Tax Act for the assessment year 2020-21. The petitioner contended that they did not receive the initial notice under Section 148A(b), which led to their inability to respond and submit necessary documents. The respondents argued that the petition lacked merit. The court, after hearing both parties, decided to set aside the impugned order and remit the matter back for fresh consideration, providing the petitioner an opportunity to submit their responses.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 764335 (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: M DILIP
• Assessee Lawyers: BALRAM RAO
• Keywords: Income Tax; Notice; Section 148A; Writ of Certiorari; Writ of Mandamus; Writ of prohibition
• Section: 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:37270 WP No. 24193 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 24193 OF 2024 (T-IT) BETWEEN: VENSAR ENTERPRISES, A PART NERSHIP FIRM HAVING ITS BUSINESS AT 112, 2ND MAIN, SARASWATHI PURAM, ULSOOR, BENGALURU 560 008. PAN NO. AKSPA8664 RERPESENTED BY ITS PARTNER VENUGOPAL AGED ABOUT 57 YEARS R/ANO. 112, 1ST FLOOR, 2ND MAIN ROAD, SARASWATHI PURAM HALASURU, HAL 2ND STAGE, BANGALORE 560 008. …PETITIONER (BY SRI. BALRAM R RAO.,ADVOCATE) AND: 1. INCOME TAX OFFICER, WARD 1(2)(1), BMTC BUILDING 80 FEET ROAD, 6TH BLOCK, NEAR KH B GAMES VILLAGE, KORAMANGALA, BENGALURU 560 095. 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:37270 WP No. 24193 of 2024 3. CHIEF COMMISSIONER OF INCOME TAX-1, BENGALURU. BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU 560 095. …RESPONDENTS (BY SRI.M DILIP.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE APPROVAL U/S. 148A(D) OF THE ACT DATED 18.03.2024 IN DIN. ITBA/AST/S/118/2022- 23/150123123(1) (ANNEXURE-C) FOR THE AY 2020-21.AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS 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) 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 approval u/s. 148A(d) of the Act dated 18.03.2024 in DIN. ITBA/AST/S/118/2022-23/150123123(1) (ANNEXURE-C) for the AY 2020-21. ii) Writ of Mandamus or writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of the Constitution of India ordering and directing the Respondents by themselves by their - 3 - NC: 2024:KHC:37270 WP No. 24193 of 2024 subordinates, servants and agents to withdraw and cancel impugned Order u/s. 148 (d) of the Act dated 18.03.2024 in DIN:ITBA/AST/F/148A/2023-24/1062854784(1) (ANNEXURE C) for the AY 2020-21 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 subordinates, servants and agents from taking any action in furtherance or consequent to Order u/s 148A(d) of the Act dated. 18.03.2024 in DIN. ITBA/AST/F/148A/2023- 24/1062854784(1) (ANNEXURE-D) for the AY 2020-21 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 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 notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 13.02.2024 was not received by petitioner - 4 - NC: 2024:KHC:37270 WP No. 24193 of 2024 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 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 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 - 5 - NC: 2024:KHC:37270 WP No. 24193 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-C dated 27.02.2024 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) Petition is hereby allowed. (ii) The impugned order at Annexure – C is 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 13.02.2024. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the - 6 - NC: 2024:KHC:37270 WP No. 24193 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 Bsv List No.: 2 Sl No.: 10 "