Iv. Quash The Impugned Notice For Penalty Dated: 16.09.2021 Under Section 274 Read With Section 270A Of The Income Tax Act, 1961 Bearing No. Itba/Pnl/S/270A/202 v. Quash The Impugned Show Cause Notice For Penalty Dated: 12.11.2021 Under Section 270A Of The Income Tax Act, 1961 Issued By The 2[Nd

Digitally signedbyLEELAVATHI SRLocation: HIGHCOURT OFKARNATAKAbyLEELAVATHI SRLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21 DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 25412 OF 2023 (TIT) BETWEEN: MR DEVAIAH NAGENDRASWAMY S/O DEVAIAH MULUGUDDU, AGED ABOUT 57 YEARS, R/AT NO. 50/10LF LIG BLOCK PWD QUARTERS, NANDINI LAYOUT, BENGLAURU 560 096. …PETITIONER (BY SRI. SINDHU RAJU UGRANKAR.,ADVOCATE) AND: 1. NATIONAL E-ASSESSMENT CENTRE INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO. 401, 2[nd] FLOOR E RAMP JAWARHARLAL NEHRU STADIUM, DELHI 110 003 REPRESENTED BY ADDITIONAL /JOINT/DEPUTY /ASST COMMISSIONER OF INCOME TAX. INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO. 401, 2[nd] FLOOR E RAMP JAWARHARLAL NEHRU STADIUM, DELHI 110 003 REPRESENTED BY ADDITIONAL /JOINT/DEPUTY /ASST COMMISSIONER OF INCOME TAX. 2. NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO. 401, 2[nd] FLOOR E RAMP JAWARHARLAL NEHRU STADIUM, DELHI 110 003 REPRESENTED BY ADDITIONAL /JOINT/DEPUTY /ASST COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO. 401, 2[nd] FLOOR E RAMP JAWARHARLAL NEHRU STADIUM, DELHI 110 003 REPRESENTED BY ADDITIONAL /JOINT/DEPUTY /ASST COMMISSIONER OF INCOME TAX …RESPONDENTS (BY SRI.M.DILIP.,ADVOCATE) THIS W.P IS FILED UNDER ARTICLES 226 OF THE CONSTITUTION OF INDIA PRAYING TO i) QUASH THE IMPUGNED SHOW CAUSE NOTICE DATED 10/09/2021 BEARING NO. ITBA/AST/F/144(SCN)(F)/2021-22/1035455814(1) ISSUED UNDER SECTION 144 OF THE INCOME TAX ACT, 1961 (ANNEXURE-A) AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM:HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks for the following reliefs:- “i. Quash the impugned show cause Notice dated: 10.09.2021 bearing No. ITBA/AST/F/144(SCN) (F)/2021-22/1035455814(1) issued under Section 144 of the Income Tax Act, 1961 (Annexure-A); ii. Quash the impugned Assessment Order Bearing No. ITBA/AST/S/144/2021-22/1035634990(1) dated: 16.09.2021 (ANNEXURE-B) passed by the 2[nd]Respondent. iii. Quash the impugned Notice of Demand dated: 16.09.2021 passed by the 2[nd] Respondent bearing No. ITBA/AST/S/156/2021-22/1035635049(1), (Annexure-B2); iv. Quash the impugned Notice for Penalty dated: 16.09.2021 under Section 274 read with Section 270A of the Income Tax Act, 1961 bearing No. ITBA/PNL/S/270A/2021-22/1035635005(1) (Annexure-C); v. Quash the impugned Show Cause Notice for Penalty dated: 12.11.2021 under Section 270A of the Income Tax Act, 1961 issued by the 2[nd] Respondent bearing No. ITBA/PNL/F/270A/2021-22/1036885617(1) (Annexure-D). vi. Pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents – revenue and perused the material on record. 3. A perusal of the material on record will indicate that the respondents issued Notices dated 31.03.2021 and 16.08.2021 followed by a remainder notice dated 26.08.2021 and the show cause notice dated 10.09.2021 to the petitioner, who did not respond to the same nor submit his reply, as a result of which, the respondents proceeded to pass the impugned assessment order dated 16.09.021 followed by demand notice and penalty notice both dated 16.09.2021 and the show cause notice dated 12.11.2021, all of which are assailed by the petitioner in the present petition. 4. Learned counsel for the petitioner submits that since the notices and show cause notice were not received by the petitioner, he could not respond to the same, since he is a driver and not well 3. A perusal of the material on record will indicate that the respondents issued Notices dated 31.03.2021 and 16.08.2021 followed by a remainder notice dated 26.08.2021 and the show cause notice dated 10.09.2021 to the petitioner, who did not respond to the same nor submit his reply, as a result of which, the respondents proceeded to pass the impugned assessment order dated 16.09.021 followed by demand notice and penalty notice both dated 16.09.2021 and the show cause notice dated 12.11.2021, all of which are assailed by the petitioner in the present petition. 4. Learned counsel for the petitioner submits that since the notices and show cause notice were not received by the petitioner, he could not respond to the same, since he is a driver and not well versed or regular user of electronic communication and the notices sent to his email id were not received by him. It is therefore submitted that inability and omission on the part of the petitioner to submit his reply / respond to the show cause notice was due to bonafide and unavoidable circumstances and as such, it is necessary that the impugned ex-parte assessment order be set aside and the matter be remitted back to the respondents for reconsideration afresh from the stage of submitting reply by the petitioner to the show cause notice. 5. Per contra, learned counsel for the respondents – revenue submits that there is no merit in the petition and that the same is liable to be dismissed. 6. A perusal of the material on record will indicate that having regard to the fact that the petitioner did not submit his reply / response to the notices, remainder notice and the show cause notice, the respondents proceeded to pass the impugned ex-parte assessment order, which deserves to be set aside by providing an opportunity to the petitioner to submit his reply and for a direction to the respondents to proceed further in accordance with law. 7. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned assessment order at Annexure-B dated 16.09.2021, Demand notice at Annexure-B2 dated 16.09.2021, penalty notice at Annexure-C dated 16.09.2021 and show notice at Annexure-D dated 12.11.2021 are hereby set aside. (iii) The matter is remitted back to the concerned respondents for consideration afresh from the stage of the petitioner submitting his reply to the show cause notice dated 10.09.2021. (iv) Petitioner is directed to submit his reply to the show cause notice dated 10.09.2021 vide Annexure-A along with necessary documents and the concerned respondents shall consider the same and provide sufficient and reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. Sd/-(S.R.KRISHNA KUMAR) JUDGE