Wp/12419/2025 Of Sri Satish Babu Epuru v. The Deputy Commissioner Of Income Tax

Digitally signedby SHWETHARAGHAVENDRALocation: HIGHCOURT OFKARNATAKA HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4 DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ -WRIT PETITION NO. 12419 OF 2025 (TIT) BETWEEN: SRI. SATISH BABU EPURU PROP PROGRESSIVE ENGINEERING ENTERPRISES, AGED 47 YEARS, S/O E VEDAGIRI REDDY, NO.204, 2 FLOOR, GANESH RESIDENCY CHAMRAJPURAM, MYSORE – 570 005 PAN …PETITIONER (BY SRI. RAVI SHANKAR S V.,ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1) AND TPS, MYSORE – 570 008. CIRCLE-1(1) AND TPS, MYSORE – 570 008. 2. NATIONAL FACELESS ASSESSMENT CENTRE, REPRESENTED BY ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. REPRESENTED BY ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. …RESPONDENTS (BY SRI. THIRUMALESH, ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ORDER PASSED U/S 143(3) R.W.S 144B DATED 17/03/2025 BEARING DIN ITBA/AST/S/143(3)/2024-25/1074573265(1) PASSED BY THE RESPONDENT NO.2 FOR THE ASSESSMENT YEAR 2023-24 HEREIN MARKED AS ANNEXURE - A. AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1.The petitioner is before this Court seeking for the following reliefs: i.“Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed U/s 143(3) r.w.s 144B dated 17/03/2025 DIN: bearing ITBA/AST/S/143(3)/2024-25/1074573265(1) passed by the Respondent No.2 for the assessment year 2023-24 herein marked as Annexure – A. of a writ of certiorari quashing the order passed U/s 143(3) r.w.s 144B dated 17/03/2025 DIN: bearing ITBA/AST/S/143(3)/2024-25/1074573265(1) passed by the Respondent No.2 for the assessment year 2023-24 herein marked as Annexure – A. ii.Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 17/03/2025 issued u/s 274 r.w.s 270A of the Act bearing DIN and Notice No. ITBA/PNL/S/270A/2024-25/1074573540(1) by the Respondent No.2 for the assessment year 2023-24 herein marked as Annexure – A1. of a writ of certiorari quashing the penalty notice dated 17/03/2025 issued u/s 274 r.w.s 270A of the Act bearing DIN and Notice No. ITBA/PNL/S/270A/2024-25/1074573540(1) by the Respondent No.2 for the assessment year 2023-24 herein marked as Annexure – A1. iii.Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 17/03/2025 issued u/s 274 r.w.s 271AAC(1) of the Act bearing DIN and Notice No. TBA/PNL/S/271AAC(1)/2024-|25/1074573541(1) by the Respondent No.2 for the assessment year 2023-24 herein marked as Annexure - A2. of a writ of certiorari quashing the penalty notice dated 17/03/2025 issued u/s 274 r.w.s 271AAC(1) of the Act bearing DIN and Notice No. TBA/PNL/S/271AAC(1)/2024-|25/1074573541(1) by the Respondent No.2 for the assessment year 2023-24 herein marked as Annexure - A2. iv.And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.” deems fit and proper in the interest of justice and equity.” iv.And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.” deems fit and proper in the interest of justice and equity.” 2.Notice under Section 143(2) of the Income Tax Act, 1961 had been issued to the petitioner on 19.06.2024. The petitioner had not replied to the same. However, the petitioner replied to the notice under Section 142(1) of the Income Tax Act, 1961 on 12.11.2024 Subsequently, a show cause notice came to be issued on 22.02.2025, which was not replied to by the petitioner on account of the mother of the chartered accountant having expired in the last week of January, 2025. It is claimed that the chartered accountant not attending to his office, the said notice could not be replied to. In the meanwhile, the impugned order came to be passed on 17.03.2025. It is challenging the said order, the petitioner is before this Court. 1961 had been issued to the petitioner on 19.06.2024. The petitioner had not replied to the same. However, the petitioner replied to the notice under Section 142(1) of the Income Tax Act, 1961 on 12.11.2024 Subsequently, a show cause notice came to be issued on 22.02.2025, which was not replied to by the petitioner on account of the mother of the chartered accountant having expired in the last week of January, 2025. It is claimed that the chartered accountant not attending to his office, the said notice could not be replied to. In the meanwhile, the impugned order came to be passed on 17.03.2025. It is challenging the said order, the petitioner is before this Court. 3.Considering the fact that there was a bereavement in the family of the chartered accountant, who was required to answer/reply to the show cause notice on the part of the petitioner and that the chartered accountant was not attending to his office, I am of the considerable opinion that an opportunity would be required to be granted to the petitioner to reply to the same, so that Respondent No.2 could pass necessary orders on merits rather than ex-parte as has been done. the family of the chartered accountant, who was required to answer/reply to the show cause notice on the part of the petitioner and that the chartered accountant was not attending to his office, I am of the considerable opinion that an opportunity would be required to be granted to the petitioner to reply to the same, so that Respondent No.2 could pass necessary orders on merits rather than ex-parte as has been done. 4.In that view of the matter, I pass the following: ORDER i)The writ petition is allowed. ii)The order dated 17.03.2025 passed by respondent No.2 under Section 143 (3) read with Section 144B at Annexure-A and the penalty notice dated 17.03.2025 issued by respondent No. 2 at Annexure-A1 as well as the penalty notice dated 17.03.2025 bearing respondent No.2 under Section 143 (3) read with Section 144B at Annexure-A and the penalty notice dated 17.03.2025 issued by respondent No. 2 at Annexure-A1 as well as the penalty notice dated 17.03.2025 bearing HC-KAR - 5 - NC: 2025:KHC:24246 No.ITBA/PNL/S/271AAC(1)/2024-25/1074573541 at Annexure-A2, are hereby quashed. iii)The matter is remitted to respondent No. 2 for fresh consideration on the petitioner submitting his reply to the show cause notice which reply shall be submitted on or before 21.07.2025. SD/- (SURAJ GOVINDARAJ) JUDGE KTY List No.: 2 Sl No.: 14