Wp/13996/2024 Of Rudrakshipura Puttamadappa Sunil v. Income Tax Officer

Digitally signedby KIRANKUMAR RLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19 DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV -WRIT PETITION NO. 13996 OF 2024 (TIT) BETWEEN: RUDRAKSHIPURA PUTTAMADAPPA SUNIL RUDRAKSHIPURA POST, MADDUR TALUK MANDYA -571 422. …PETITIONER (BY SRI RAVISHANKAR S.V, ADV.) AND: 1. INCOME TAX OFFICER WARD NO.1 AND TPS MANDYA - 571 401. WARD NO.1 AND TPS MANDYA - 571 401. 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER INCOME TAX DEPARTMENT MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, 3-RAMP, JAWAHARLAL NEHRY STADIUM, DELHI - 110 003. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER INCOME TAX DEPARTMENT MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, 3-RAMP, JAWAHARLAL NEHRY STADIUM, DELHI - 110 003. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-3 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-3, BMTC BUILDING, KORAMANGALA, BANGALORE - 560 095. THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-3, BMTC BUILDING, KORAMANGALA, BANGALORE - 560 095. …RESPONDENTS (BY SRI M. THIRUMALESH, ADV.) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRYING TO DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE UNDER SECTION 148A(B) OF THE ACT, DATED 21/03/2022 BEARING DIN NO. ITBA/AST/F/148A(SCN)/2021-22/1041110629 (1), ISSUED BY THE RESPONDENT NO. 1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE -A. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER 1. The petitioner has called in question the validity of the notice under Section 148A(b) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) at Annexure-A as also the order under Section 148A(d) of the Act at Annexure-A1 and notice under Section 148 of the Act at Annexure - A2, assessment order under Section 147 read with Sections 144 and 144B at Annexure - A3, penalty order at Annexure- A4 and penalty notice at Annexures - A5, A6, A7 and A8. 2. Learned counsel for the petitioner submits that the notice under Section 148A(b) of the Act issued on 21.03.2022 has provided time till 25.03.2022 for reply which is in violation of the time of not less than 7days in terms of Section 148A(b) of the Act and accordingly, once the notice under Section 148A(b) of the Act is held to be defective, all proceedings pursuant thereto ought to be set-aside. - 3 - 3. The legal mandate under Section 148A(b) of the Act is that an opportunity would be provided to show cause by notice being not less than 7 days. In the present case, admitted facts would show that the period prescribed is less than period prescribed under Section 148A(b) of the Act. Section 148A(b) of the Act reads as under:- "148A. Conducting inquiry, providing opportunity before issue of notice under section 148.-The Assessing Officer shall, before issuing any notice under section 148,- (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment; (b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a);" - 4 - (b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a);" - 4 - 4. In the light of the admitted facts as the notice under Section 148A(b) of the Act is contrary to the mandate of the statutory provisions, the contention of the assessee that prejudice is caused by not adhering to the time limit under the provisions requires acceptance. Accordingly, notice under Section 148A(b) of the Act is set-aside and in the light of the same, the order under Section 148A(d) of the Act at Annexure-A1 as well as notice under Section 148 at Annexure-A2 and assessment order at Annexure-A3 are set-aside. Consequentially, penalty order at Annexure - A4, penalty notice at Annexures - A5, A6, A7 and A8 are set-aside. 5. Revenue is at liberty to issue fresh notice under Section 148A(b) of the Act and resume proceedings after following procedure as per law. 6. Accordingly, petition is disposed off. SD/- JUDGE DN