VENSAR ENTERPRISES V. INCOME TAX OFFICER

WP/22539/2024

AI Insights

The case involves Vensar Enterprises, a partnership firm, which filed a writ petition against various orders and notices issued by the Income Tax Department concerning the Assessment Year 2019-20. The petitioner challenged the approval under Section 151, the order under Section 148A(d), the order under Sections 147, 144, and 144B, and the notice of demand under Section 156 of the Income Tax Act, 1961. The petitioner argued that they did not receive the notice under Section 148A(b), which led to their inability to respond and submit necessary documents. The respondents contended that the petition lacked merit. The court found that the petitioner had not received the notice and thus did not have the opportunity to respond, leading to the decision to set aside the impugned orders and remit the matter for fresh consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 765622 (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: Certiorari; Certiorari; Faceless Appeals; Income Tax; Mandamus; Notice of demand; Prohibition; Writ petition
• Section: 147; 144; 151; 144B; 148A; 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:37273 WP No. 22539 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.22539 OF 2024 (T-IT) BETWEEN: VENSAR ENTERPRISES A PARTNERSHIP FIRM UNDER COMPANIES ACT, 2013 HAVING ITS BUSINESS AT 112, 2ND MAIN, SARASWATHI PURAM, ULSOOR, BENGALURU 560 008. REPRESENTED BY ITS PARTNER VENUGOPAL KUMARESAN S/O VENUGOPAL, AGED ABOUT 57 YEARS, R/A. NO. 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 KHB 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:37273 WP No. 22539 of 2024 3. PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU - 1 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU. …RESPONDENTS (BY SRI.M DILIP., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i) 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. 151 OF THE ACT ISSUED U/S. 151 OF THE ACT DT. 25.02.2023 IN DIN- ITBA/AST/S/118/2022- 23/150123123(1) (ANNEXURE B), IMPUGNED ORDER U/S. 148A (D) OF THE ACT DT. 27.02.2023 IN DIN- ITBA/AST/F/148A/2022-23/1050155362(1) (ANNEXURE C), ORDER PASSED U/S. 147 R.W.S. 144 R.W.S 144B OF THE ACT DT. 29.03.2024 IN DIN- ITBA/AST/S/147/2023-24/1063612019(1) (ANNEXURE-M) AND NOTICE OF DEMAND ISSUED U/S. 156 OF THE ACT DT.29.03.2024 IN DIN- ITBA/AST/S/156/2023- 24/1063612121(1) (ANNEXURE M1), FOR THE AY 2019-20 AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, 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. 151 of the Act issued u/s. 151 of the Act dated 25.02.2023 in DIN-ITBA/AST/S/118/2022- 23/150123123(1) (Annexure B), impugned order u/s. 148A - 3 - NC: 2024:KHC:37273 WP No. 22539 of 2024 (d) of the Act dated 27.02.2023 in DIN- ITBA/AST/F/148A/2022-23/1050155362(1) (ANNEXURE C), Order passed u/s. 147 r.w.s. 144 r.w.s 144B of the Act dated. 29.03.2024 in DIN- ITBA/AST/S/147/2023- 24/1063612019(1) (ANNEXURE-M) and Notice of Demand issued u/s. 156 of the Act dated 29.03.2024 in DIN- ITBA/AST/S/156/2023- 24/1063612121(1) (ANNEXURE M1), for the AY 2019-20. ii) Writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of Constitution of India ordering and directing the respondents by themselves by their subordinates, servants or agents to withdraw and cancel the approval u/s. 151 of the Act issued u/s. 151 of the Act dated. 25.02.2023 in DIN- ITBA/AST/S/118/2022- 23/150123123(1) (ANNEXURE B), impugned Order u/s.148A(d) of the Act dated 27.02.2023 in DIN- ITBA/AST/F/148A/2022-23/1050155362(1) (ANNEXURE C), Order passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Act dated 29.03.2024 in DIN-ITBA/AST/S/147/2023- 24/1063612019(1) (ANNEXURE M) and Notice of Demand issued u/s. 156 of the Act dated. 29.03.2024 in DIN- ITBA/AST/S/156/2023- 24/1063612121(1) (ANNEXURE M1), 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 - 4 - NC: 2024:KHC:37273 WP No. 22539 of 2024 furtherance or consequent to order u/s. 148A(d) of the Act dated. 27.02.2023 in DIN- ITBA/AST/F/148A/2022- 23/1050155362(1) (ANNEXURE-C) Order passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Act dated. 29.03.2024 in DIN- ITBA/AST/S/147/2023-24/1063612019(1) (ANNEXURE M) and Notice of Demand issued u/s. 156 of the Act dated. 29.03.2024 in DIN- ITBA/AST/S/156/2023- 24/1063612121(1) (ANNEXURE M1), for the AY 2019- 20 passed by Respondents. iv) Writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of Constitution of India ordering and directing the Respondents by themselves by their subordinates, servants or agents to extend the benefit of TCS claim u/s. 206C of the Act for the SS Enterprises for the A.Y. 2019- 20. v) Grant the interim relief in terms of prayer (iii) above, and vi) 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 - 5 - NC: 2024:KHC:37273 WP No. 22539 of 2024 respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 23.01.2023 was not received by 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 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 its inability and omission to submit a reply along - 6 - NC: 2024:KHC:37273 WP No. 22539 of 2024 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-C dated 27.02.2023 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) Petition is hereby allowed. (ii) The impugned notices / orders at Annexures – B, C, M and M1 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 23.01.2023. - 7 - NC: 2024:KHC:37273 WP No. 22539 of 2024 (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the 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.: 18 "