Wp/18145/2025 Of Mr. Suresh Kumar Channappa v. Deputy Commissioner Of Income Tax

Digitally signedby SHWETHARAGHAVENDRALocation: HIGHCOURT OFKARNATAKA HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2 DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ -WRIT PETITION NO. 18145 OF 2025 (TIT) BETWEEN: 1. MR. SURESH KUMAR CHANNAPPA AGED 56 YEARS, AGED 56 YEARS, SON OF LATE SHRI CHANNAPPA RESIDING AT NO. 391/141, 19 MAIN ROAD, NEAR NARAYANA COLLEGE, 1 BLOCK, RAJAJINAGAR, BANGALORE – 560 010. 2. MR. MAHESH KUMAR CHANNAPPA AGED ABOUT 45 YEARS, AGED ABOUT 45 YEARS, SON OF LATE SHRI CHANNAPPA, RESIDING AT 116, 6 MAIN ROAD, 2 STAGE, MALAGALA BUS STOP, 8 BLOCK, NAGARBHAVI. BANGALORE – 560 072 RESIDING AT 116, 6 MAIN ROAD, 2 STAGE, MALAGALA BUS STOP, 8 BLOCK, NAGARBHAVI. BANGALORE – 560 072 …PETITIONERS (BY SRI. SANDEEP HUILGOL.,ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(4), BENGALURU C.R. BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001. CENTRAL CIRCLE 2(4), BENGALURU C.R. BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001. 2. INCOME-TAX OFFICER (INV.), UNIT 1(1), BENGALURU UNIT 1(1), BENGALURU WP No. 18145 of 2025 CENTRAL REVENUE BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001 3. PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU 2, CENTRAL REVENUE BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001 4. PRINCIPAL COMMISSIONER OF INCOME-TAX, CENTRAL BANGALORE CENTRAL REVENUE BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001 5. ADDITIONAL COMMISSIONER OF INCOME-TAX, CENTRAL RANGE 2, BENGALURU CENTRAL REVENUE BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001 6. ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 2(4), BENGALURU, CENTRAL REVENUE BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001 7. DIRECTOR GENERAL OF INCOME-TAX (INV.) INCOME-TAX (INV.) CENTRAL REVENUE BUILDING, NO. 1, QUEENS ROAD, BENGALURU – 560 001. (BY SRI.Y.V.RAVIRAJ AND SRI.M.DILIP, ADVOCATES FOR R1 TO R7) …RESPONDENTS THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-(I) QUASHING THE IMPUGNED ASSESSMENT ORDER DATED 11.03.2024 BEARING DIN AND ORDER NO.ITBA/AST/M/147/202-324/1062398818(1) - 3 - PASSED BY THE 1ST RESPONDENT UNDER SECTION 144 READ WITH SECTION 147 OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2013-14 (ANNEXURE -A).(II) QUASHING THE IMPUGNED NOTICE OF DEMAND DATED 11.03.2024 BEARING DIN AND ORDER NO. ITBA/AST/M/147/202-324/1062398818(1) ISSUED BY THE 1ST RESPONDENT UNDER SECTION 156 OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2013-14 (ANNEXURE-A-1) AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1.The petitioners are before this Court seeking the following relief: a)“Quashing the Impugned Assessment Order dated 11.03.2024 bearing DIN and Order No. ITBA/AST/M/147/202-324/1062398818(1) passed by the 1st Respondent under Section 144 read with Section 147 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'A'); 11.03.2024 bearing DIN and Order No. ITBA/AST/M/147/202-324/1062398818(1) passed by the 1st Respondent under Section 144 read with Section 147 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'A'); THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1.The petitioners are before this Court seeking the following relief: a)“Quashing the Impugned Assessment Order dated 11.03.2024 bearing DIN and Order No. ITBA/AST/M/147/202-324/1062398818(1) passed by the 1st Respondent under Section 144 read with Section 147 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'A'); 11.03.2024 bearing DIN and Order No. ITBA/AST/M/147/202-324/1062398818(1) passed by the 1st Respondent under Section 144 read with Section 147 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'A'); b)Quashing the Impugned Notice of Demand dated 11.03.2024 bearing DIN ,and Order No. ITBA/AST/M/147/202- 324/106239818(1) issued by the 1st Respondent under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'A-1'); 11.03.2024 bearing DIN ,and Order No. ITBA/AST/M/147/202- 324/106239818(1) issued by the 1st Respondent under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'A-1'); c)Quashing the Impugned Penalty Order dated 30.09.2024 bearing DIN No. ITBA/PNL/M/271(1)(c)/2024- 25/1069246591(1) passed by the 6th Respondent under Section 271(1)(c) of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'B'); 30.09.2024 bearing DIN No. ITBA/PNL/M/271(1)(c)/2024- 25/1069246591(1) passed by the 6th Respondent under Section 271(1)(c) of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'B'); d)Quashing the Impugned Notice of Demand dated 30.09.2024 bearing DIN and Order No. ITBA/PNL/S /156/ 2)/2024-25/1069269361(1) issued by the 6th Respondent under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'B-1'); 30.09.2024 bearing DIN and Order No. ITBA/PNL/S /156/ 2)/2024-25/1069269361(1) issued by the 6th Respondent under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'B-1'); e) Quashing the impugned computation sheet dated 30.092024 ITBA/PNL/M/271(1)(C)/2024-25/1069246591 bearing din No. 2024201340419249160T issued by the 6th Respondent under various provisions of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'B-2'); 30.092024 ITBA/PNL/M/271(1)(C)/2024-25/1069246591 bearing din No. 2024201340419249160T issued by the 6th Respondent under various provisions of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'B-2'); f) Quashing the Impugned Notice dated 31.03.2023 bearing DIN and Notice No. ITBA/COM/M/17/2022- 23/1051782106(1) issued by the 1st Respondent under Section 148 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'H'); and in so as per as petitioner. bearing DIN and Notice No. ITBA/COM/M/17/2022- 23/1051782106(1) issued by the 1st Respondent under Section 148 of the Income-tax Act, 1961 for the Assessment Year 2013-14 (Annexure 'H'); and in so as per as petitioner. g)Pass such order or further orders as this Hon'ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” 2.A short grievance of the petitioners is that the petitioners, being the legal heirs of Sri late Channappa, were not brought on record as legal heirs of the said Sri Channappa by the second respondent in terms of the order at Annexure-A dated 11.03.2024. Channappa, were not brought on record as legal heirs of the said Sri Channappa by the second respondent in terms of the order at Annexure-A dated 11.03.2024. 3. The submission of Sri Sandeep Hoilgol, learned counsel for the petitioners, is that the assessment - 5 - WP No. 18145 of 2025 g)Pass such order or further orders as this Hon'ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.” 2.A short grievance of the petitioners is that the petitioners, being the legal heirs of Sri late Channappa, were not brought on record as legal heirs of the said Sri Channappa by the second respondent in terms of the order at Annexure-A dated 11.03.2024. Channappa, were not brought on record as legal heirs of the said Sri Channappa by the second respondent in terms of the order at Annexure-A dated 11.03.2024. 3. The submission of Sri Sandeep Hoilgol, learned counsel for the petitioners, is that the assessment - 5 - WP No. 18145 of 2025 was regarding the late Sri Channappa, and as such, all his legal heirs are to be brought on record. Only his wife and another sibling have been brought on record. The petitioners, who are also the children of the late Sri.Channappa, had not been brought on record. And as such, he submits that an opportunity has to be provided to the petitioners to place their say on record to enable respondent No. 1 to pass appropriate orders. 4.Sri M.Dilip, learned counsel for the respondents submits that notice had been issued to the petitioners and in regard thereto, the original file is made available for inspection with the original registered post receipts. submits that notice had been issued to the petitioners and in regard thereto, the original file is made available for inspection with the original registered post receipts. 5.On enquiry with him as to whether the said notice has been served on and any acknowledgment is available, he is unable to place the same on record since what is maintained by the Income Tax Department is only the receipts issued by the Postal has been served on and any acknowledgment is available, he is unable to place the same on record since what is maintained by the Income Tax Department is only the receipts issued by the Postal NC: 2025:KHC:23775 WP No. 18145 of 2025 Department for registered post which have been dispatched by the Income Tax Department. dispatched by the Income Tax Department. 6. It is rather surprising that the Postal Department and the Income Tax Department have not been integrated. When this Court has integrated with the Postal Department to provide real-time tracking of all the notices issued by this Court to the concerned litigants, it would be for the Income Tax Department also to have proper postal integration, and thereby proper and adequate records are maintained as regards service of notices by the registered post acknowledgment due. Of course, this being in respect of notices served otherwise through by way of email. the Income Tax Department have not been integrated. When this Court has integrated with the Postal Department to provide real-time tracking of all the notices issued by this Court to the concerned litigants, it would be for the Income Tax Department also to have proper postal integration, and thereby proper and adequate records are maintained as regards service of notices by the registered post acknowledgment due. Of course, this being in respect of notices served otherwise through by way of email. 7. In view of the fact that there is no document that has been placed on record evidencing service of notice on the petitioners and the petitioners being on record as legal heirs of the late Sri.Channappa, I am of the considered opinion that orders could not have has been placed on record evidencing service of notice on the petitioners and the petitioners being on record as legal heirs of the late Sri.Channappa, I am of the considered opinion that orders could not have - 7 - NC: 2025:KHC:23775 WP No. 18145 of 2025 been passed by respondent No.1 against the petitioners by showing them as parties to the said order without there being a notice issued and served. 8.In that view of the matter, I pass the following :ORDER: 7. In view of the fact that there is no document that has been placed on record evidencing service of notice on the petitioners and the petitioners being on record as legal heirs of the late Sri.Channappa, I am of the considered opinion that orders could not have has been placed on record evidencing service of notice on the petitioners and the petitioners being on record as legal heirs of the late Sri.Channappa, I am of the considered opinion that orders could not have - 7 - NC: 2025:KHC:23775 WP No. 18145 of 2025 been passed by respondent No.1 against the petitioners by showing them as parties to the said order without there being a notice issued and served. 8.In that view of the matter, I pass the following :ORDER: a)The writ petition is allowed. b)The assessment order dated 11.03.2024 at Annexure-A, the impugned notice of demand dated 11.03.2024 at Annexure-A1, the penalty order dated 30.09.2024 at Annexure-B, the impugned notice of demand dated 30.09.2024 at Annexure-B1 and the impugned computation sheet dated 30.09.2024, are quashed. at Annexure-A, the impugned notice of demand dated 11.03.2024 at Annexure-A1, the penalty order dated 30.09.2024 at Annexure-B, the impugned notice of demand dated 30.09.2024 at Annexure-B1 and the impugned computation sheet dated 30.09.2024, are quashed. c)The matter is remitted to the first respondent for fresh consideration. respondent for fresh consideration. d)Since the order is passed in the presence of learned counsel for the petitioners and the respondents, the petitioners shall appear before respondent No.1 without requirement of any further notice at 2.30 p.m. on 22.07.2025. of learned counsel for the petitioners and the respondents, the petitioners shall appear before respondent No.1 without requirement of any further notice at 2.30 p.m. on 22.07.2025. HC-KAR WP No. 18145 of 2025 e)Any documents relied upon by the petitioners and any objections to be filed by the petitioners shall be filed on the very same date. petitioners and any objections to be filed by the petitioners shall be filed on the very same date. f)Respondent No.1 is directed to consider the said objections and permit the petitioners to examine and cross-examine the witnesses in the matter and after hearing the petitioners to pass necessary orders in accordance with law. the said objections and permit the petitioners to examine and cross-examine the witnesses in the matter and after hearing the petitioners to pass necessary orders in accordance with law. g)All contentions in respect of the Section 148 notice are kept open. 148 notice are kept open. h)If there are any other legal heirs of Sri.Channappa, the department is permitted to bring them on record. Sri.Channappa, the department is permitted to bring them on record. i)Though the above petition is allowed, to report compliance with para 6 above, re-list on 30.07.2025. report compliance with para 6 above, re-list on 30.07.2025. report compliance with para 6 above, SD/- (SURAJ GOVINDARAJ) JUDGE KTY/List No.: 1 Sl No.: 48