Wp/21554/2024 Of M/S Karnataka Education Society v. Assessment Unit/ Income Tax Officer

Digitally signedby LEELAVATHIS RLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13 DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 21554 OF 2024 (TIT) BETWEEN: M/S KARNATAKA EDUCATION SOCIETY A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860, REPRESENTED BY ITS SECRETARY, SRI. DR. M. MANJUNATH, SON OF SRI. M. MADALINGAIAH, AGED ABOUT 57 YEARS, NO. 92, II MAIN, III BLOCK, III STAGE, BASAVESHWARNAGAR, BANGALORE. …PETITIONER (BY SRI. MADHUSUDHAN U A.,ADVOCATE) AND: 1. ASSESSMENT UNIT/ INCOME TAX OFFICER INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, MINISTRY OF FINANCE, ROOM NO. 401, 2 FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, DELHI-110 003. ROOM NO. 401, 2 FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, DELHI-110 003. 2. THE INCOME TAX OFFICER WARD -6 (1)(1), BENGALURU, WARD -6 (1)(1), BENGALURU, BMTC BUILDING,80 FEET ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. 3. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA, BMTC BUILDING,80 FEET ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. KARNATAKA AND GOA, BMTC BUILDING,80 FEET ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. …RESPONDENTS (BY SRI.M DILIP.,ADVOCATE) NC: 2024:KHC:32503 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASH THE ASSESSMENT ORDER DATED 26.02.2024 PASSED UNDER SECTION 147 R.W.S 144 R.W.S 144B OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2016-17 BY THE RESPONDENT NO.1 BEARING DIN AND ORDER NO. ITBA/AST/S/147/2023-24/161484317(1) HEREIN MARKED AS ANNEXURE-A1 AND B) QUASH THE COMPUTATION SHEET DATED 26.02.2024 ISSUED FOR THE ASSESSMENT YEAR 2016-17 BY THE RESPONDENT NO.1 BEARING DIN AND ORDER NO. ITBA/AST/S/115/2023-24/1061484391(1) HEREIN MARKED AS ANNEXURE-A2 AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM:HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner has sought for the following reliefs:- “a) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated: 26.02.2024 passed under Section 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 for the assessment year 2016-14 by the Respondent No.1 bearing DIN & order No.ITBA/AST/S/147/2023-24/1614843174(1) herein marked as Annexure-A1. b) Issue a writ Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated: 26.02.2024 issued for the assessment year 2016-17 by the Respondent No.1 bearing DIN & order No. ITBA/AST/S/115/2023-24/1061484391(1) herein marked as Annexure-A2. C) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated: 26.02.2024 issued under Section 156 of the Income Tax, 1961 for the assessment year 2016-17 by the Respondent NO.1 bearing DIN & Order No.ITBA/AST/S/156/2023-24/1061484442(1) herein marked as Annexure-A3. d) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing the penalty notice dated: 26.02.2024 issued under Section 274 r.w.s. 271(1) (c) of the Income Tax Act, 1961 for the assessment year 2016-17 by the Respondent No.1 bearing DIN & order No. ITBA/PNL/F/271(1) (C)/2023-24/1061484614(1) herein marked as Annexure-A4. e) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated: 26.02.2024 issued under Section 274 r.w.s. 271(1) (b) of the Income Tax Act, 1961 for the assessment year 2016-17 by the Respondent No.1 bearing DIN & order No. ITBA/PNL/F/271(1) (B)/2023-24/1061484610(1) herein marked as Annexure-A5. e) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated: 26.02.2024 issued under Section 274 r.w.s. 271(1) (b) of the Income Tax Act, 1961 for the assessment year 2016-17 by the Respondent No.1 bearing DIN & order No. ITBA/PNL/F/271(1) (B)/2023-24/1061484610(1) herein marked as Annexure-A5. f) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated: 26.02.2024 issued under Section 274 r.w.s. 271 F of the Income Tax Act, 1961 for the assessment year 2016-17 by the Respondent No.1 bearing DIN & order No. ITBA/PNL/S/271F/2023-24/1061484628 (1) herein marked as Annexure-A6. g) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice dated: 09.02.2023 issued under Section 148 A(b) of the Income Tax Act, 1961 for the assessment year 2016-17 bearing DIN No. ITBA/AST/F/148A(SCN)/2022-23/1049585692(1) herein marked as Annexure-B1. h) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order dated: 27.03.2023 passed Section 148 A(d) of the Income Tax Act, 1961 dated: 27.03.2023 by the Respondent No.2 for the assessment year 2016-17 bearing DIN No. ITBA/AST/F/148A(SCN)/2022-23/1051429165(1) herein marked as Annexure-B2. i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice dated: 28.03.2023 issued under Section 148 of the Act by the Respondent No.2 for the 1961 for the assessment year 2016-17 bearing DIN No. ITBA/AST/F/148_1/2022-23/1051506755 (1) herein marked as Annexure-B3. j) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity” . 2. Heard learned counsel for the petitioner and learned counsel for the respondents-revenue and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that in pursuance of the Notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 09.02.2023, the response / reply submitted to the respondents was not properly considered and appreciated by them and due to non-availability of documents, petitioner could not submit additional reply along with documents. It is therefore submitted that the inability and omission on the part of the petitioner to submit proper and additional reply / response along with documents to Section 148A(b) Notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and as such, if one more opportunity is provided to the petitioner to do so by setting aside the impugned orders and notices, the petitioner would do so and respondents may be directed to proceed further in accordance with law. 4. Per contra, learned counsel for the respondents-revenue submits that there is no merit in the petition and that the same is liable to be dismissed. 5. A perusal of the impugned order will indicate that it is an undisputed fact that even though the petitioner has submitted its reply / response to Section 148A(b) notice, no supporting documents or evidence in support of its contentions have been NC: 2024:KHC:32503 4. Per contra, learned counsel for the respondents-revenue submits that there is no merit in the petition and that the same is liable to be dismissed. 5. A perusal of the impugned order will indicate that it is an undisputed fact that even though the petitioner has submitted its reply / response to Section 148A(b) notice, no supporting documents or evidence in support of its contentions have been NC: 2024:KHC:32503 produced / adduced before the respondents and additional reply was not submitted by the petitioner. Under these circumstances, in view of the specific assertion on the part of the petitioner that its inability and omission to submit additional reply / response along with documents to Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and if one more opportunity is granted, petitioner would submit additional reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure-B2 dated 27.03.2023 passed under Section 148A(d) of the I.T Act and subsequent notices / orders, etc., and remit the matter back to 1[st] respondent for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 148A(b) notice and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) Petition is hereby allowed. (ii) The impugned orders / notices at Annexures-B2, B3, A1, A2, A3, A4, A5 and A6 are hereby set aside. (iii) Matter is remitted back to the 1[st] respondent for reconsideration afresh in accordance with law from the stage of NC: 2024:KHC:32503 submitting of additional reply to the Notice issued under Section 148A(b) of the I.T Act at Annexure-B1 dated 09.02.2023. (iv) Liberty is reserved in favour of the petitioner to submit additional replies, responses, pleadings, documents, etc., to the 1[st]respondent, who shall consider the same and provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Srl.