Wp/13036/2024 Of Sri. Kalaiah Rangaswamy v. The Income Tax Officer

Digitallysigned byLEELAVATHIS R Location:High Court ofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 13036 OF 2024 (TIT) BETWEEN: SRI. KALAIAH RANGASWAMY, S/O KALAIAH, AGED ABOUT 51 YEARS, KUNIHAL ROAD BALLAGERE, HEBBUR HOBLI, NAGAVALLI POST, TUMAKRURU-572216. ALSO AT, SRI KALAIAH RANGASWAMY, RANAGANNAPALYA, HEBBUR HOBLI, TUMKUR TALUK, NAGAVALLI, MADHUGIRI- 572 118. …PETITIONER (BY SRI. RAVI SHANKAR S.V.,ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 1 AND TPS TUMKUR- 572 102. 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. …RESPONDENTS (BY SRI. SANMATHI.E.I.,ADVOCATE) THIS WP IS FILED PRAYING TO QUASH THE ORDER PASSED U/S 143(3) R.W.S 144B DTD 23.03.2024 BEARING NO.ITBA/AST/S/143(3)/2023.24/1063244271(1) ISSUED BY THE R2 FOR THE ASSESSMENT YEAR 2022.23 HEREIN MARKED AS ANNEXURE-A. THIS PETITION, COMING ON FOR FINAL 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: “i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed U/s 143(3) writ of certiorari quashing the order passed U/s 143(3) r.w.s 1448 dated 23/03/2024 bearing ITBA/AST/S/143(3)/2023-24/1063244271(1) issued by the Respondent No. 2 for the assessment year 2022-23 herein marked as Annexure - A. ITBA/AST/S/143(3)/2023-24/1063244271(1) issued by the Respondent No. 2 for the assessment year 2022-23 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 u/s 271AAC(1) of the Act dated 23/03/2024 bearing DIN No. ITBA/PNL/S/271AAC(1)/2023-24/1063244518(1) by the Respondent No. 2 for the assessment year 2022-23 herein marked as Annexure - A1. writ of certiorari quashing the penalty notice u/s 271AAC(1) of the Act dated 23/03/2024 bearing DIN No. ITBA/PNL/S/271AAC(1)/2023-24/1063244518(1) by the Respondent No. 2 for the assessment year 2022-23 herein marked as Annexure - A1. iii) 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. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. - 3 - NC: 2025:KHC:12197 WP No. 13036 of 2024 3. A perusal of the material on record will indicate that aggrieved by the order dated 23.03.2024 passed by respondent No.1 under Section 143(3) read with Section 144B of the Income Tax Act, pursuant to which, respondent No.2 issued the impugned penalty notice dated 23.03.2024 at Annexure-A1 passed under Section 271AAC(1) of the Act and as such, the petitioner is before this Court by way of the present petition. 4. In this context, it is pointed out that inability and omission on the part of the petitioner to submit replies to the notices issued by the respondents and to participate in the proceedings was due to bonafide and unavoidable circumstances and sufficient cause and consequently, the petitioner was not in a position to issue reply or appear before the respondents and participate in the said proceedings. It is submitted that the petitioner has a good case to urge on merits and if one more opportunity is granted in favour of the petitioner, the petitioner would submit its reply along with the documents and participate in the proceedings and as such, it is necessary that the impugned orders / Notices at Annexure A1 be set aside and the matter be remitted back to the respondents by providing one more 4. In this context, it is pointed out that inability and omission on the part of the petitioner to submit replies to the notices issued by the respondents and to participate in the proceedings was due to bonafide and unavoidable circumstances and sufficient cause and consequently, the petitioner was not in a position to issue reply or appear before the respondents and participate in the said proceedings. It is submitted that the petitioner has a good case to urge on merits and if one more opportunity is granted in favour of the petitioner, the petitioner would submit its reply along with the documents and participate in the proceedings and as such, it is necessary that the impugned orders / Notices at Annexure A1 be set aside and the matter be remitted back to the respondents by providing one more opportunity to the petitioner to submit its reply to the notices and direct the respondents to proceed further in accordance with law. 5. Per contra, learned counsel for the respondents submits that despite sufficient opportunity being granted in favour of the petitioner, the petitioner did not send its reply nor participated in the proceedings and consequently, the impugned order does not warrant interference by this Court and the petition is liable to be dismissed. 6. A perusal of the impugned order at Annexure – A will clearly indicate that the same was passed in the absence of the petitioner, who did not avail the opportunity provided by the respondent, who has proceeded to pass the impugned order. In view of the aforesaid facts and circumstances and specific assertions on the part of the petitioner that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to send reply enclosing documents and contest the proceedings and in order to provide one more opportunity to the petitioner, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh in accordance with law after providing one more opportunity to the petitioner in this regard. 7. In the result, I pass the following: ORDER (i) The impugned notice / order at Annexure – A1 dated 23.03.2024, is hereby set aside. dated 23.03.2024, is hereby set aside. (ii) Matter is remitted back to the stage of petitioner submitting reply to Show Cause Notice dated 23.03.2024 under Section 143 and to proceed further in accordance with law. petitioner submitting reply to Show Cause Notice dated 23.03.2024 under Section 143 and to proceed further in accordance with law. (iii) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before respondent No.2, who shall consider the same and pass appropriate orders in accordance with law. file its reply, pleadings, documents, etc., before respondent No.2, who shall consider the same and pass appropriate orders in accordance with law. (iv) All rival contentions are kept open and no opinion is expressed on the same. opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 91