Wp/2368/2025 Of Mohammed Mustafa v. The Principal Commissioner Of Income Tax

Digitallysigned byNANDINI DLocation:High CourtofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 2368 OF 2025 (TIT) BETWEEN: MOHAMMED MUSTAFA, AGED ABOUT 24 YEARS, RESIDING AT NO.26, 7 CROSS, MAHADEVAPURA ROAD,KALYANAGIRI, UDAYAGIRI 1 STAGE, MYSORE - 560 019, PAN NO. - . …PETITIONER (BY SRI. SRI MALLAHA RAO K., ADVOCATE) AND: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX, REVENUE BUILDING, 22/16, CENTRAL GOVERNMENT HOUSE RD, NAZARABAD, MYSORE – 570 010. 2. THE INCOME TAX OFFICER, REVENUE BUILDING, 22/16, CENTRAL GOVERNMENT HOUSE RD, NAZARABAD, MYSORE-570010 REVENUE BUILDING, 22/16, CENTRAL GOVERNMENT HOUSE RD, NAZARABAD, MYSORE-570010 …RESPONDENTS (BY SRI. M. THIRUMALESH AND SRI DILIP M., ADVOCATES) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 & 227 OF CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED ORDER DATED 23.03.2024, PASSED BY 2 RESPONDENT IN ORDER NO. ITBA/AST/S/144/2023-24/1063251919(1), VIDE ANNEXURE – D AND ETC. THIS 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 seeks for the following reliefs: “(i) Issue Writ of Certiorari or in the like nature of Certiorari quashing the impugned order dated 23.03.2024, passed by 2nd respondent in order No.: ITBA/ AST/ S/ 144/ 2023-24/1063251919(1), vide ANNEXURE - D; (ii) Issue Writ of Mandamus or writ of direction to the respondent authorities to refrain from further proceedings and take such necessary measures / steps in respect of the impugned order dated 23.03.2024, passed by 2nd respondent in order No.: ITBA/ AST/S/144/2023-24/1063251919(1), vide ANNEXURE- D; (iii) Issue Writ of Prohibition, not to proceed with further steps or measures or any such kind of initiatives pertaining to recovery(s) over the impugned demand made thereof vide ANNEXURE D; directing the respondent authorities to refrain from further coercive steps, in any manner of whatsoever in nature, in accordance to the impugned order dated 23.03.2023, passed by 2nd respondent in order No.: ITBA/ AST/ S/ 144/ 2023-24/1063251919(1), vide ANNEXURE - D; NC: 2025:KHC:12955 (iv) Pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of this case, 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. A perusal of the material on record will indicate that the respondent having issued Show Cause Notice dated 29.02.2024, petitioner did not submit any reply to the same and as such, respondent No.2 proceeded to pass the impugned exparte assessment order at Annexure-D dated 23.03.2024 under Section 144 read with Section 144B of the Income Tax Act which is assailed by the petitioner 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 - 4 - 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 order at Annexure –D 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. - 4 - 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 order at Annexure –D 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 – D 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 - 5 - NC: 2025:KHC:12955 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 assessment order at Annexure – D dated 23.03.2024, is hereby set aside. Annexure – D 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 02.06.2023 under Section 143(2) of the Income Tax Act and to proceed further in accordance with law. petitioner submitting reply to Show Cause Notice dated 02.06.2023 under Section 143(2) of the Income Tax Act 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. - 6 - NC: 2025:KHC:12955 WP No. 2368 of 2025 (iv) All rival contentions are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 2 Sl No.: 17