Wp/106294/2023 Of Shri Shivlingeshwar Co Operative Credit Society v. The Income Tax Officer

Digitally signed byTHEJASKUMAR NLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 13 DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI -WRIT PETITION NO. 106294 OF 2023 (TIT) BETWEEN: SHRI. SHIVLINGESHWAR CO-OPERATIVE CREDIT SOCIETY, AT/POST: SAIDAPUR, TAL: MUDHOL, DIST: BAGALKOT-587 316, REPRESENTED BY ITS SECRETARY, SHRI. RAMCHANDRA BASAPPA MOPAGAR, AGE: 59 YEARS, OCC: SECRETARY, R/O: BISANAL RABAKAVI BANAHATTI, DIST: BAGALKOT. …PETITIONER (BY SRI. SANGRAM.S.KULKARNI., ADVOCATE) AND: 1. THE INCOME TAX OFFICER, WARD 1 AND TPS BAGALKOT AIKAR BHAVAN, SECTOR 24, NAVANAGAR, DIST: BAGALKOT-587 102. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX, C.R. BUILDING, NAVANAGAR, HUBBALLI-580 025. …RESPONDENTS (BY SRI. M.THIRUMALESH., ADVOCATE FOR R1-R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Sangram S.Kulkarni., counsel for the petitioner and Sri.M.Thirumalesh., counsel for the respondents have appeared in person. 2. The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the assessment order dated 07.03.2022 passed under Section 147 R/w Section 144 R/w Section 144B of the Income Tax Act, 1961 in DIN No:ITBA/AST/S/147/2021-22/1040409027(1) for the Assessment Year 2016-17 vide Annexure-H. 3. Heard the arguments and perused the Writ papers with care. 4. The petitioner is a Cooperative Society registered under the Karnataka Cooperative Societies Act, 1959 and is engaged in the business of providing credit facilities to its members. The petitioner after its registration applied for issuance of PAN card and was assigned the status of Firm instead of AOP and PAN bearing No. was issued. However, in the year 2017, a new PAN number was assigned - 3 - bearing No. . The first respondent issued notice under Section 148 of the Income Tax Act, 1961 relating to Assessment Year 2015-16on the pretext that the petitioner has not filed its returns of income for the said Assessment Year by referring to the old PAN number. Since the petitioner did not have the password, requested the first respondent to reset the password. Despite requests, the issue was not resolved to reset the password. However, an ex-parte assessment order was passed on 07.03.2022. This is untenable. The respondents have failed to consider that the petitioner has been assigned with new PAN number and therefore, it could not reply to the notice sent to it by referring to the old PAN number. Because of the ex-parte order, this Court considers it proper to allow the assessee to contest the matter by taking part in the proceedings. Hence, the matter requires a remand. Therefore, the assessment order is liable to be set aside, so it is set aside. 5. The Writ of Certiorari is ordered. The assessment order dated 07.03.2022 passed under Section 147 R/w Section 144 R/w Section 144B of the Income Tax Act, 1961 in DIN No:ITBA/AST/S/147/2021-22/1040409027(1) for the Assessment Year 2016-17 vide Annexure-H is quashed. The matter is remanded to the first respondent to the stage of reply to 148 notice and to pass fresh order. All contentions of the parties are kept open. This Court has not expressed any opinion on the merits of the case. Since the petitioner is represented by its counsel, petitioner is directed to appear before the first respondent on 21.10.2024 without awaiting further notice. 6. Resultantly, the Writ Petition is allowed and remanded. Sd/- (JYOTI MULIMANI) JUDGE TKN/MRP LIST NO.: 1 SL NO.: 30