M/S Nph Cooking Gallery v. Partnership Act

Digitallysigned byLEELAVATHIS R Location:High Courtof Karnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 7460 OF 2025 (TIT) BETWEEN: M/S NPH COOKING GALLERY NO. 121, 1 FLOOR, (OLD NO. 190), 6 CROSS ROAD, GANDHINAGAR, BANGALORE – 560 009. (REPRESENTED BY ITS PARTNER, MR. HARSHA.V) (REGISTRAR V/S PARTNERSHIP ACT) …PETITIONER (BY SRI. ARAVINDA S.N, ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 5(2) (1), BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BANGALORE – 560 034. 2. THE PR. COMMISSIONER OF INCOME TAX BMTC BUILDING, 80 FEET ROAD KORMANGALA, BANGALORE – 560 034. …RESPONDENTS (BY SRI. M THIRUMALESH, ADVOCATE AND SMT. ROOPA R ANANEKAR, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH ASSESSMENT ORDER PASSED UNDER SECTION 147 READ WITH SECTION 144 OF THE INCOME TAX ACT, 1961 DATED 11/3/2204 FOR A.Y.2018-19 BEARING DIN AND ORDER NO.ITBA/AST/S/147/2023-24/1062420720(1) IS PRODUCED AS 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 the following reliefs: (a) To Quash Assessment order passed under Section 147 read with Section 144 of the Income Tax Act, 1961 dated 11/3/2204 for A.Y.2018-19 bearing DIN & Order No.ITBA/AST/S/147/2023-24/1062420720(1) is produced as Annexure-A. 147 read with Section 144 of the Income Tax Act, 1961 dated 11/3/2204 for A.Y.2018-19 bearing DIN & Order No.ITBA/AST/S/147/2023-24/1062420720(1) is produced as Annexure-A. (b) To quash Copy of Notice of Demand issued under Section 156 of the Income Tax Act, 1961 dated 11/3/24 for A.Y.2018-19 bearing DIN & Notice No.ITBA/AST/S/156/2023-24/1062420801(1) is produced as -Annexure-B Section 156 of the Income Tax Act, 1961 dated 11/3/24 for A.Y.2018-19 bearing DIN & Notice No.ITBA/AST/S/156/2023-24/1062420801(1) is produced as -Annexure-B (c) To order dated 23/9/2024 passed under Section 272(1)(d) of the Income Tax Act, 1961 Act bearing No.ITBA/PNL/F/272A(1)(d)/2024-25/1068964963(1) dated 23/9/2024 is produced as Annexure-E 272(1)(d) of the Income Tax Act, 1961 Act bearing No.ITBA/PNL/F/272A(1)(d)/2024-25/1068964963(1) dated 23/9/2024 is produced as Annexure-E (d) Notice of Demand issued under section 156 of the Act bearing ITBA/PNL/S/156/2024-25/1068961451(1) 23/9/2024-Annexure-F. for Α.Υ.2018-19 dated Act bearing ITBA/PNL/S/156/2024-25/1068961451(1) 23/9/2024-Annexure-F. for Α.Υ.2018-19 dated (e) To quash order passed under section 271AAC(1) of the Act dated 23/9/24 bearing DIN No.ITBA/PNL/F/271AAC(1)/2024-25/1068956054(1)- for A.Y.2018-19 is produced as Annexure-G. the Act dated 23/9/24 bearing DIN No.ITBA/PNL/F/271AAC(1)/2024-25/1068956054(1)- for A.Y.2018-19 is produced as Annexure-G. (f) To quash Notice of demand dated 23/9/24 for A.Y.2018-19 bearing DIN & Notice A.Y.2018-19 bearing DIN & Notice No.ITBA/PNL/S/156/2024-25/1068950946(1) is produced as Annexure- G1 and To issue any other Writ or direction or to grant such other relief or reliefs as deemed fit under the facts and circumstances of this case” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. (e) To quash order passed under section 271AAC(1) of the Act dated 23/9/24 bearing DIN No.ITBA/PNL/F/271AAC(1)/2024-25/1068956054(1)- for A.Y.2018-19 is produced as Annexure-G. the Act dated 23/9/24 bearing DIN No.ITBA/PNL/F/271AAC(1)/2024-25/1068956054(1)- for A.Y.2018-19 is produced as Annexure-G. (f) To quash Notice of demand dated 23/9/24 for A.Y.2018-19 bearing DIN & Notice A.Y.2018-19 bearing DIN & Notice No.ITBA/PNL/S/156/2024-25/1068950946(1) is produced as Annexure- G1 and To issue any other Writ or direction or to grant such other relief or reliefs as deemed fit under the facts and circumstances of this case” 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 memorandum of 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’), was not received by petitioner 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 one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned orders at Annexure – A dated 11/03/2024, passed under Section 147 read with section 144 of the Income Tax Act, the order at Annexure-E dated 23/09/2024 passed under section 272(1)(d)of the Income Tax Act, the order at Annexure -G dated 23/09/2024 passed under section 271AAC(1) of the Income Tax 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) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures A, E and G 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 dated 21/03/2022. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE