YBRANT ENGINEERING AND CONSTRUCTIONS PRIVATE LIMITED V. THE ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER

WP/2455/2025

AI Insights

The case involves Ybrant Engineering and Constructions Private Limited, which filed a writ petition against the notices and orders issued by the Income Tax authorities under Section 148A of the Income Tax Act, 1961, for the assessment year 2019-20. The petitioner argued that due to the death of one of its directors, who was responsible for tax matters, they were unable to respond to the notices. The court found that the notices were sent to the email of the deceased director, and thus the petitioner was not aware of the proceedings, warranting an opportunity for the petitioner to file objections and participate in the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 746586 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 13-02-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI; M DILIP
• Assessee Lawyers: MANASA ANANTHAN
• Keywords: Assessment Year 2019-20; Exparte orders; Income Tax; Notice Quashing; Opportunity to file objections
• Section: 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2025:KHC:6547 WP No. 2455 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO. 2455 OF 2025 (T-IT) BETWEEN: YBRANT ENGINEERING AND CONSTRUCTIONS PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO.71, CHINMAYEEN DOMLUR 2ND STAGE, 4TH MAIN, 1ST CROSS, BANGALORE -560071, REP. BY ITS DIRECTOR BK SATHYANARAYANA RAO. …PETITIONER (BY MS. MANASA ANANTHAN, ADV.) AND: 1. THE ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE ASSESSMENT UNIT, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110003. 2. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 7(1)(1) 2ND FLOOR, BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 095. 3. THE PRINCIPAL COMMISSIONER OF INCOME-TAX- II, 5TH FLOOR, BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:6547 WP No. 2455 of 2025 KORAMANGALA, BENGALURU - 560 095. …RESPONDENTS (BY SRI. E.I SAMMATHI AND SRI M DILIP, ADVS.) THIS PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO (A) QUASHING THE NOTICE DATED 18.03.2023 BEARING NO. ITBA/ AST/ F/ 148A(SCN)/ 2022- 23/ 1050946233(1) (ANNEXURE C) ISSUED BY THE 2ND RESPONDENT UNDER SECTION 148A(B) OF THE ACT, FOR THE ASSESSMENT YEAR 2019-20 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT ORAL ORDER Heard learned counsel Ms.Manasa Ananthan for petitioner and learned counsel Sri.Sanmathi.E.I., and Sri.M.Dilip, learned counsel for respondent Nos.1 to 3. Perused the writ petition papers. 2. Learned counsel for the petitioner would submit that petitioner is before this Court questioning the notices issued under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘1961 Act’) as well as order passed under Section 148A(d) of 1961 Act along with consequential notices and orders. It is the submission of learned counsel for the petitioner that the dispute in the present writ - 3 - NC: 2025:KHC:6547 WP No. 2455 of 2025 petition relates to the assessment year 2019-20 and one Mr.Sreegiriraju Jagan Mohan Rao, one of the Directors of the petitioner-company was looking after the tax matters including filing of return of income. It is stated that the said Director died on 05.09.2022 and death certificate is produced at Annexure-B. To substantiate the contention that said Director was looking after filing of returns, learned counsel invites attention of this Court to Annexure-A, wherein the e-mail of the said Director is shown. It is submitted that since the said Director was looking after the tax matters and who was filing return of income of the petitioner-company has expired, the petitioner-company could not file returns for the assessment year 2019-20 and all notices sent to the e- mail address of the deceased Director had not come to the notice of the petitioner-company. Therefore, it is submitted that the petitioner-company could not file objections and to participate in the proceedings initiated by issuing notice under Section 148A(b) of 1961 Act. Therefore, learned counsel would pray for an opportunity - 4 - NC: 2025:KHC:6547 WP No. 2455 of 2025 to file objections and participate in the proceedings initiated under Section 148A(b) of 1961 Act. 3. Per contra, learned counsel Sri.M.Dilip, for Sri.E.I.Sanmathi would submit that it is not that the notice was not issued to the petitioner-company, but the petitioner-company failed to file objections and participate in the proceedings. But, he submits that the order passed subsequent to issuance of notice under Section 148A(b) of 1961 Act are all exparte orders. 4. Having heard the learned counsel appearing for the parties and on perusal of the entire writ petition papers, I am of the view that the petitioner-company ought to be given an opportunity to file objections and participate in the proceedings initiated by issuance of notice under Section 148A(b) of 1961 Act and further proceedings. 5. Annexure-A, return of income filed by the company for the assessment year 2019-20 indicates the e- - 5 - NC: 2025:KHC:6547 WP No. 2455 of 2025 mail address of the deceased Director Mr.Sreegiriraju Jagan Mohan Rao. Said Director died on 05.09.2022, as evidenced from Annexure-B – death certificate. The notice issued under Clause (b) of Section 148A of 1961 Act is dated 18.03.2023 i.e., subsequent to the death of the above stated Director of the petitioner-company. If the notices were sent to the e-mail address of the deceased Director, petitioner-company would have no knowledge of the proceedings initiated by issuing notices under Section 148A(b) of 1961 Act. As the proceedings by issuance of notice under Section 148A(b) of 1961 Act and further proceedings are exparte and since the substantial right of the petitioner is involved, I deem it appropriate to provide an opportunity to the petitioner-company to file objections and participate in the proceedings. 6. In the above circumstances, the following: ORDER a) Annexure-D order bearing No.ITBA/AST/F/148A/ 2022-23/1051734732(1) dated 31.03.2023; - 6 - NC: 2025:KHC:6547 WP No. 2455 of 2025 Annexure-E notice bearing No.ITBA/AST/S/148_1/ 2022-23/1051734823(1) dated 31.03.2023; Annexure-F order bearing No.ITBA/AST/147/2023- 24/1061567569(1) dated 27.02.2024; Annexure-G demand notice bearing No.ITBA/AST/S/156/2023- 24/1061567666(1) dated 27.02.2024; Annexure-H order bearing No.ITBA/PNL/S/156/2024- 25/1066266703(1) dated 28.06.2024; Annexure-J demand notice bearing No.ITBA/PNL/S/156/2024- 25/1066266703(1) dated 28.06.2024; Annexure-K order bearing No.ITBA/PNL/F/272A(1)(d)/2024- 25/1066271738(1) dated 28.06.2024; and Annexure-L demand notice bearing No.itba/pnl/s/156/2024-25/1066271690(1) DATED 28.06.2024 are quashed. b) The matter is remanded to the respondent No.2 to the stage of filing objections to notice issued under Clause (b) of Section 148A of 1961 Act (Annexure-C). - 7 - NC: 2025:KHC:6547 WP No. 2455 of 2025 b) Since the tax demand is about Rs.132 Crores, I deem it appropriate to direct the petitioner- company to pre-deposit a sum of Rs.3 Crores before the second respondent and four weeks time is granted to file objections to the notice at Annexure- C. Thereafter, respondent No.2 shall proceed further in accordance with law. c) With the above, writ petition stands disposed of. Sd/- (S.G.PANDIT) JUDGE NC CT:bms List No.: 1 Sl No.: 26 "