Wp/10873/2022 Of M/S Jssmvp Employees House v. The Income Tax Officer

Digitallysigned byCHANDANAB MLocation:High CourtofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO.10873 OF 2022 (TIT) BETWEEN: M/S JSSMVP EMPLOYEES HOUSE BUILDING CO OPERATIVE SOCIETY REGD. KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959 #1, DR RAJKUMAR ROAD, JSS NAGAR MYSURU – 570 011 (PAN ) REP. BY ITS INCHARGE PRESIDENT SRI M.S. SARPABHUSHAN AGED 70 YEARS S/O SRI SHIVALINGA DEVARU NATURE OF BUSINESS: OF JSSMVP MYSORE DEVELOPMENT AND ALLOTMENT OF PLOTS TO EMPLOYEES REGISTERED UNDER SECTION 7 OF THE KARNATAKA CO-OP SOCIETY ACT, 1959. …PETITIONER (BY SRI. S. PARTHASARATHI, ADVOCATE) AND: 1. THE INCOME TAX OFFICER INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE DELHI – 110 001. INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE DELHI – 110 001. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1) AND TPS ROOM NO.113, 1 FLOOR AYAKAR BHAVAN, REAC MYSURU – 570 008. OF INCOME TAX CIRCLE 1(1) AND TPS ROOM NO.113, 1 FLOOR AYAKAR BHAVAN, REAC MYSURU – 570 008. …RESPONDENTS (BY SRI. M. DILIP AND SRI. Y.V. RAVIRAJ, ADVOCATES) SRI. Y.V. RAVIRAJ, ADVOCATES) THIS W.P. IS FILED UNDER ARTICELS 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 23.03.2021 ISSUED BY R2 U/S 148 OF THE ACT FOR THE ASSESSMENT YEAR 2013-14 IN FILE DIN AND NOTICE NO.ITBA/AST/S/148/2020-21/1031693116(1) ANNEXURE-C AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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) Issue a Writ or Certiorari or a direction in the nature of writ of Certiorari quashing the notice dated 23.03.2021 issued by 2[nd] Respondent under Section 148 of the Act for the assessment year 2013-14 in file DIN & Notice No:ITBA/AST/S/148/2020-21/1031693116(1) (Annexure-C); (b) Issue a Writ or Certiorari or a direction in the nature of writ of Certiorari quashing the assessment order dated 29.03.2022 passed under Section 147 rws 144B of the Act issued by the 1[st] respondent for the assessment year 2013-14 in file DIN ITBA/AST/S/147/2021-22/1042017376(1) (Annexure-V); (c) Issue a Writ of Prohibition or a direction in the nature of Writ of Prohibition restraining the 1[st] Respondent from proceeding further in the matter of recovery of the entire demand of Rs.1,78,44,491/- in pursuance of the assessment order dated 29.03.2022 passed under Section 147 rws 144B of the Act for the assessment year 2013-14 in file DIN ITBA/AST/S/147/2021-22/1042017376(1) (Annexure-V); (d) If the Hon’ble Court desires not to quash the assessment order as invalid, there being lack of opportunity and lack of adjudication of the objections raised for reopening the assessment under Section 147 of the Act by issue of notice under Section 148 of the Act and the same having not been provided to the Petitioner for its rebuttal, the assessment order is required to be quashed and the 1[st]Respondent should be directed to give fresh opportunity to the Petitioner by providing an adjudication order against the objections raised before the assessment stood concluded and that too after providing opportunity to the Petitioner to furnish the particulars of the members of the Petitioner-Society. (e) pass such other order, direction or writ as this Hon’ble Court deems fit, and (f) direct the Respondents to award the costs of this Writ Petition.” 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 the respondent No.2 issued a notice under section 148 of the Income NC: 2025:KHC:12051 (e) pass such other order, direction or writ as this Hon’ble Court deems fit, and (f) direct the Respondents to award the costs of this Writ Petition.” 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 the respondent No.2 issued a notice under section 148 of the Income NC: 2025:KHC:12051 Tax Act (for short, ‘IT Act’) dated 23.03.2021. In response to the said Notice, the petitioner vide letter dated 01.07.2021 sought for reasons for issuance of the said notice. Subsequently, the respondent No.2 issued notices under section 142(1) of the IT Act to which the petitioner filed replies vide letters dated 02.11.2021, 05.01.2022, 17.01.2022, 08.03.2022, 21.03.2022 & 25.03.2022. It is submitted that respondent No.2 failed to consider the replies filed by the petitioner at various occasions and further proceeded to pass the impugned order under Section 147 r.w.s. 144B of the Act at Annexure V dated 29.03.2022. The counsel for the petitioner also submits that if one more opportunity is provided to the petitioner to reply to the notices 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 after considering the replies filed by the petitioner. 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 and the material on record will indicate that it is an undisputed fact that petitioner NC: 2025:KHC:12051 submitted reply / response along with documents to Section 148 notice and other Section 142(1) notices and the respondent No.1 failed to consider the said reply stating that the petitioner failed to reply to the Section 148 notice. Under these circumstances, I deem it just and appropriate to set aside the impugned order at Annexure – V dated 29.03.2022 passed under Section 147 r.w.s. 144B 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 / response by the petitioner to Section 148 notice and in the event the petitioner files its reply / response, the respondent is directed to consider such reply / response filed by the petitioner and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order at Annexure V dated 29.03.2022 passed by respondent No.1 is 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 Notice under Section 148of the IT Act dated 23.03.2021. (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. (v) Petitioner is not entitled to put-forth the plea of limitation either before the respondent or before this Court subsequent to this order. Sd/- (S.R.KRISHNA KUMAR) JUDGE