Wp/14933/2024 Of Prathamika Krushi Pattina Sahakara Sangha Niyamitha v. Income Tax Officer

Digitallysigned byVIJAYA PLocation:HIGH COURTOFKARNATAKA 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. 14933 OF 2024 (TIT) BETWEEN: 1. PRATHAMIKA KRUSHI PATTINA SAHAKARA SANGHA NIYAMITHA SANGHA NIYAMITHA DODDAGUNI, BETTADAGAKKU, AT BETTADAHALLI, TUMKUR-572 222. PAN: AAFAPO578G ALSO AT: OMKARAMURTY B S, AGED 49 YEARS, S/O SADASHIVAIAH, BETTADAHALLI, GUBBI TALUQ, TUMKUR-572 222. NO.DRTS/815/1976-77 DATED 25-9-1976 CO-OPERATIVE SOCIETY ACT, 1959. … PETITIONER (BY SRI. RAVI SHANKAR S V., ADVOCATE) AND: 1. INCOME TAX OFFICER WARD 1 AND TPS, TUMKUR-572 103. WARD 1 AND TPS, TUMKUR-572 103. 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ 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 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-2, BMTC BUILDING, KORAMANGALA, BANGALORE-560 095 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-2, BMTC BUILDING, KORAMANGALA, BANGALORE-560 095 … RESPONDENTS (BY SRI. E.I. SANMATHI., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE UNDER SECTION 148A(b) OF THE ACT DATED 25/01/2023, BEARING DIN NO. ITBA/AST/F/148A(SCN)/2022-23/1049080926(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANNEXURE - A AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Petitioner has called in question the validity of the order under Section 148-A(d) of the Income Tax Act, 1961 (for short 'the Act') at Annexure-A2. Petitioner has also challenged the notice under Section 148 of the Act at Annexure-A3; order passed under Section 147 read with - 3 - Sections 144 and 144B of the Act at Annexure-A4 and the penalty notice at Annexure-A5. 2.Learned counsel for the petitioner submits that notice under Section 148A(b) was issued and details of cash withdrawals and cash deposits have been mentioned, which however according to the petitioner lacks clarity regarding the source of such information. It is submitted that though the petitioner had made out a reply, an order was passed under Section 148A(d), after which proceedings have commenced. 3.It is the case of the petitioner that the information as made out in the notice extracted as Annexure, is incorrect and detailed explanation was made pointing out clarifications from petitioner's side. It is further submitted that the petitioner if granted an opportunity would be in a position to explain cash deposits and withdrawals as mentioned in the Annexure which does not constitute income assessable to tax. - 4 - NC: 2024:KHC:21963 4.Learned counsel for the petitioner has also sought for an opportunity to call upon the Department to explain the source of information contained in the Annexure to notice under Section 148A(b). 5.Taking note of the contention of the petitioner that the income of the petitioner is essentially exempt and in fact, the petitioner had undergone loss for the relevant year, it would be appropriate to afford another opportunity to the petitioner to make out a better reply to the notice under Section 148A(b) and to facilitate such opportunity, to afford the opportunity to call upon the Department to explain the source of information by virtue of which withdrawals and deposits are detailed in the Annexure. - 4 - NC: 2024:KHC:21963 4.Learned counsel for the petitioner has also sought for an opportunity to call upon the Department to explain the source of information contained in the Annexure to notice under Section 148A(b). 5.Taking note of the contention of the petitioner that the income of the petitioner is essentially exempt and in fact, the petitioner had undergone loss for the relevant year, it would be appropriate to afford another opportunity to the petitioner to make out a better reply to the notice under Section 148A(b) and to facilitate such opportunity, to afford the opportunity to call upon the Department to explain the source of information by virtue of which withdrawals and deposits are detailed in the Annexure. 6.Accordingly, the order Section 148-A(d) of the Act at Annexure-A2; notice under Section 148 of the Act at Annexure-A3; order passed under Section 147 read with Sections 144 and 144B of the Act at Annexure-A4 and the penalty notice at Annexure-A5 are set aside. The matter is remitted to the stage of reply to the notice under Section 148A(b) of the Act. All contentions are kept open. 7.Petition is disposed off in light of the discussion and observations made above. Sd/- JUDGE VP