Wp/12134/2025 Of Young Mens Indian Association v. The Income Tax Officer

Digitally signed byNAGARAJA B MLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24 DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 12134 OF 2025 (TIT) BETWEEN: 1. YOUNG MENS INDIAN ASSOCIATION REGISTERED UNDER REGISTERED UNDER THE KARNATAKA SOCIETY PAN NO. AAAAY 1007 E HAVING REGISTERED OFFICE AT NO. 5, ASSAYE ROAD, ULSOOR BANGALORE, KARNATAKA - 560 04 REPRESENTED BY ITS SECRETARY MR. JOSPEH KENNEDY S/O LATE IRUDAYNATHAN JOSEPH NOGALAN AGED ABOUT 59 YEARS …PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI, ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 1(2)(1), BANGALORE BMTC BUILDING, 6TH BLOCK NEAR KHB GAMES VILLAGE KORMANGALA, BENGALURU - 560 095. NEAR KHB GAMES VILLAGE KORMANGALA, BENGALURU - 560 095. 2. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX OF INCOME TAX KARNATAKA AND GOA REGION CR BUILDING, QUEENS ROAD BENGALURU - 560 001. - 2 - 3. THE ASSESSMENT UNIT INCOME TAX DEPARTMENT THE NATIONAL FACELESS ASSESSMENT CENTRE NORTH BLOCK, NEW DELHI DELHI-110 001. INCOME TAX DEPARTMENT THE NATIONAL FACELESS ASSESSMENT CENTRE NORTH BLOCK, NEW DELHI DELHI-110 001. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 25/03/2023, UNDER SEC. 147 R.W.S 144 R.W.S 144B OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE NO. ITBA/AST/S/147/2022-23/1051281144(1) ALONG WITH COMPUTATION SHEET DATED 25/03/2023, BEARING DIN AND NOTICE NO ITBA/AST/S/115/2022-23/1051281367(1) AND NOTICE OF DEMAND DATED 25/03/2023, UNDER SEC. 156 OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE NO ITBA/AST/S/156/2022-23/1051281270(1), PASSED BY THE RESPONDENT AUTHORITY NO. 3 THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, PERTAINING TO ASSESSMENT YEAR 2015-16, VIDE ANNEXURE-A, A1 AND A2 RESPECTIVELY 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 Sri.M.Dilip, learned counsel accepts notice for the respondents. 2. In this petition, petitioner seeks the following reliefs: “ A. To issue a WRIT of CERTIORARI, quashing the impugned Assessment Order dated 25/03/2023, under Sec.147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/AST/S/ 147/2022-23/1051281144(1) along with Computation Sheet dated 25/03/2023, bearing DIN and Notice No.: ITBA/AST/S/115/2022-23/1051281367(1) and Notice of Demand Dated:25/03/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No. ITBA/AST/S/156/2022-23/1051281270(1), passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-A, A1 and A2 respectively; and B. To issue a WRIT of CERTIORARI, quashing the impugned Penalty Order dated: 21/08/2023, under Sec.271(1)(c) of the Income Tax Act, 1961, bearing DIN and NOTICE No.ITBA/PNL/F/271(1)(C)/2023-24/1055526478(1) along with Computation Sheet Dated 21/08/2023, bearing DIN and Notice No. ITBA/PNL/S/271(1)(c)/2022-23/1051281655(1) and Notice of Demand Dated: 21/08/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2023-24/1055526227(1) passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-B, B-1 and B-2 respectively; and B. To issue a WRIT of CERTIORARI, quashing the impugned Penalty Order dated: 21/08/2023, under Sec.271(1)(c) of the Income Tax Act, 1961, bearing DIN and NOTICE No.ITBA/PNL/F/271(1)(C)/2023-24/1055526478(1) along with Computation Sheet Dated 21/08/2023, bearing DIN and Notice No. ITBA/PNL/S/271(1)(c)/2022-23/1051281655(1) and Notice of Demand Dated: 21/08/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2023-24/1055526227(1) passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-B, B-1 and B-2 respectively; and C. To issue a WRIT of CERTIORARI, quashing the impugned Penalty Order Dated:21/08/2023, under Sec.271F of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/F/271F/2023-24/ 1055526482(1) along with Computation Sheet Dated 21/08/2023, bearing DIN and Notice No.ITBA/PNL/S/271F/2022-23/1051281656(1) and Notice of Demand dated: 21/08/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No: ITBA/PNL/S/156/2023-24/1055526230(1) passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-C, C1 and C2 respectively; and D. To issue a WRIT of CERTIORARI, quashing the impugned Penalty Order dated:22/08/2023, under Sec.271(1)(b) of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/F/271(1)(B)/2023-24/ 1055526514(1) along with Computation Sheet Dated: 22/08/2023, bearing DIN and Notice No: ITBA/PNL/S/271(1)(b)/2022-23/1051281646(1) and Notice of Demand Dated: 22/08/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2023-24/1055526254(1) passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-D, D-1 and D-2 respectively; and E. To issue a WRIT of CERTIORARI, quashing the impugned Notice Dated:31/03/2022, bearing DIN and Notice No:ITBA/AST/S/148-1/2021-22/ 1042370058(1), under Sec.148 of the Income Tax Act, 1961, issued by the Income Tax Officer, Ward - 1(2)(1), Bangalore, in respect of the petitioner, pertaining to Assessment Year 2015-16, vide Annexure-G and F. To issue a WRIT of CERTIORARI, quashing the impugned order dated 31/03/2022, vide DIN No.ITBA/AST/F/148A/2021-22/1042357185(1), under Sec.148A(d) of the Income Tax Act, 1961, passed by the Income Tax Officer, Ward - 1(2)(1), Bangalore, in respect of the petitioner, pertaining to Assessment Year 2015-16, vide Annexure-F, and G. To issue a WRIT of CERTIORARI, quashing the impugned Show Cause Notice dated: 23/03/2022, vide DIN No.ITBA/AST/F/148A(SCN)/2021-22/ 1041353135(1), under Sec.148A(b) of the Income Tax Act, 1961, issued by the Income Tax Officer, Ward -1(2)(1), Bangalore, in respect of the petitioner, pertaining to Assessment Year 2015-16, Vide Annexure-E, and H. To pass any such other Writ, Order or Direction as this Hon'ble Court might deem fit to be issued in the fact and circumstances of the case in the interest of justice and equity." 3. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. G. To issue a WRIT of CERTIORARI, quashing the impugned Show Cause Notice dated: 23/03/2022, vide DIN No.ITBA/AST/F/148A(SCN)/2021-22/ 1041353135(1), under Sec.148A(b) of the Income Tax Act, 1961, issued by the Income Tax Officer, Ward -1(2)(1), Bangalore, in respect of the petitioner, pertaining to Assessment Year 2015-16, Vide Annexure-E, and H. To pass any such other Writ, Order or Direction as this Hon'ble Court might deem fit to be issued in the fact and circumstances of the case in the interest of justice and equity." 3. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 4. 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 notices 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. 5. 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. 6. A perusal of the impugned order would 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 its 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 Annexures–A, A1, A.2, B, B1, B.2, C, C1, C.2, D, D1, D2, G, F 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. 7. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices/orders at Annexures-A, A1, A2, B, B1, B2, C, C1, C2, D, D1, D2, G and F 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 Act at Annexure-E dated 23.03.2022. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondents, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE