Vijayanagara Sri Krishnadevaraya University, Jnanasagar Campus, Vinayaka Nagar, Contonment Ballari-583105 V. Union of India, by the Secretary Ministry of Finance, New Delhi-110011 and The Income Tax Officer, Ward No.1 & TPS Ayakar Bhavan, Staff Road, Ballari-583102

WP/104483/2023

AI Insights

The case involves Vijayanagara Sri Krishnadevaraya University, represented by its registrar, challenging an order issued by the Income Tax Officer under Section 148A(d) of the Income Tax Act, 1961. The order was based on the university's alleged failure to file income tax returns for the assessment year 2019-20, concerning transactions amounting to Rs.5,28,21,226. The university contended that it had submitted replies to the show cause notice, which were not considered by the 2nd respondent before passing the order. The court found that the university was not given a reasonable opportunity to respond before the order was issued, leading to the quashing of the impugned order and remitting the matter back for reconsideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 803802 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-07-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VENKATESH KHARVI; Y RAVIRAJ
• Assessee Lawyers: ANOOP DESHPANDE; BASAVARAJ KARADI
• Keywords: Assessment Year 2019-20; Income Tax Returns; Quashing of order; Show cause notice; Writ of Certiorari
• Section: 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2023:KHC-D:7858 WP No. 104483 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF JULY, 2023 BEFORE THE HON'BLE MR JUSTICE S.VISHWAJITH SHETTY WRIT PETITION NO. 104483 OF 2023 (T-IT) BETWEEN: VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY, JNANASAGAR CAMPUS, VINAYAKA NAGAR, CONTONMENT BALLARI-583105. R/BY ITS REGISTRAR, SRI. S C PATIL. … PETITIONER (BY SRI. ANOOP G DESHPANDE & SRI. BASAVARAJ A KARADI, ADVOCATES) AND: 1. UNION OF INDIA, BY THE SECRETARY MINISTRY OF FINANCE, NEW DELHI-110011. 2. THE INCOME TAX OFFICER, WARD NO.1 & TPS AYAKAR BHAVAN, STAFF ROAD, BALLARI-583102. … RESPONDENTS (BY SRI. VENKATESH M KHARVI, ASG FOR R1; SRI. Y V RAVIRAJ, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE WRIT OF CERTIORARI OR ANY OTHER ORDER OR WRIT BY QUASHING THE ORDER DATED. 08.03.2023 PASSED BY THE 2ND RESPONDENT BEARING DIN AND NOTICE NO. ITBA/AST/F/148A/2022-23/1050504441(1) AGAINST THE PETITIONER AS PER ANNEXURE-D IN THE INTEREST OF JUSTICE AND EQUITY. VISHAL NINGAPPA PATTIHAL Digitally signed by VISHAL NINGAPPA PATTIHAL Date: 2023.07.28 13:22:14 +0530 - 2 - NC: 2023:KHC-D:7858 WP No. 104483 of 2023 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner - University is before this Court with a prayer to quash the order Annexure - D dated 08.03.2023 passed by the 2nd respondent bearing No.ITBA / AST / F / 148A / 2022-23 / 1050504441 (1). 2. Heard the learned counsel for the parties. 3. The 2nd respondent had issued a show cause notice to the petitioner under Section 148A(d) of the Income Tax Act, 1961 (hereinafter referred to as \"Act of 1961\" for short), alleging that the petitioner - University had not filed its income tax returns for the assessment year 2019-20 for the transactions made to the extent of Rs.5,28,21,226/-. On the ground that the petitioner had not submitted its reply within the time provided in the show cause notice, the 2nd respondent had proceeded to pass an order under Section 148A(d) of the Act of 1961. - 3 - NC: 2023:KHC-D:7858 WP No. 104483 of 2023 Being aggrieved by the same, the petitioner is before this Court. 4. Learned counsel for the petitioner submits that proper opportunity was not given to the petitioner to submit its reply. He submits that the petitioner has in fact submitted its reply before the 2nd respondent and without considering the same, the 2nd respondent has passed the impugned order. 5. Learned counsel appearing for the 2nd respondent has argued in support of the impugned order at Annexure - D and submits that prima facie the material would go to show that the income tax returns for the assessment year 2019-20 was not filed by the petitioner and therefore after issuing the show cause notice, the present order has been passed which calls for no interference. The material on record would go to show that the show cause notice was issued to the petitioner on 13.02.2023 asking the petitioner to furnish its reply on or before 23.02.2023. The date of service of show cause - 4 - NC: 2023:KHC-D:7858 WP No. 104483 of 2023 notice is not forthcoming from the order impugned. The material on record would go to show that on 08.03.2023, the petitioner has submitted its reply to the show cause notice which is available on Annexure - B. The petitioner has also thereafter subsequently submitted yet another reply on 14.03.2023 vide Annexure - E. In the meanwhile, it appears that the impugned order was already passed by the 2nd respondent on 08.03.2023. From the aforesaid dates and events, I am of the considered view that the petitioner was not provided with reasonable opportunity before the 2nd respondent to show cause to the notice issued under Section 148A(d) of the Act of 1961. 6. Under the circumstances, I am of the view that the impugned order dated 08.03.2023 vide Annexure - D is required to be quashed on the short ground and the matter to be remitted to the 2nd respondent to pass fresh orders after considering the reply submitted by the petitioner vide Annexures - B and E and also after - 5 - NC: 2023:KHC-D:7858 WP No. 104483 of 2023 affording an opportunity of being heard to the petitioner. Accordingly the following: ORDER The writ petition is allowed. The impugned order at Annexure - D dated 08.03.2023 issued by the 2nd respondent is quashed and the matter is remitted to the 2nd respondent with a direction to consider the replies submitted by the petitioner to the show cause notice issued under Section 148A(d) of the Act of 1961 dated 08.03.2023 and 14.03.2023 vide Annexures - B and E and pass appropriate orders on the same in accordance with law after giving an opportunity of being heard to the petitioner. Sd/- JUDGE Rsh/Ct:Bck List No.: 1 Sl No.: 34 "