Wp v. Income Tax Officer

Digitallysigned byLEELAVATHIS RLocation:HIGH COURTOFKARNATAKA NC: 2024:KHC:37196WP No. 2473 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11 DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 2473 OF 2024 (TIT) BETWEEN: AKKUR NAGARAJU ANIL KUMAR S/O A S NAGARAJU, AGED ABOUT 39 YEARS, PREVIOUSLY R/AT 184 AKKUR, AKKUR POST, RAMANGARAM 571 501. KARNATAKA. PRESENTLY R/AT NO.28, OPAL AKSHAYA 9 CROSS, ELLANAHALLI MAIN, AKSHAYANAGAR, BENGALURU 560 068. …PETITIONER (BY SRI. BALRAM R RAO.,ADVOCATE) AND: 1. INCOME TAX OFFICER, WARD 1 AND TPS, I T OFFICE, MANDYA, CAUVERY PARK ROAD, MANDYA 571 401, KARNATAKA. WARD 1 AND TPS, I T OFFICE, MANDYA, CAUVERY PARK ROAD, MANDYA 571 401, KARNATAKA. 2. ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI INCOME TAX DEPARTMENT, DELHI II FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110 003. …RESPONDENTS ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI INCOME TAX DEPARTMENT, DELHI II FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110 003. …RESPONDENTS (BY SRI.M DILIP.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALLIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE IMPUGNED ORDER PASSED UNDER CLAUSE (D) OF SECTION 148 A OF THE ACT DTD 26.04.2022 IN DIN AND NOTICE NO. ITBA/AST/F/148A/202-23/1042861000(1) (ANNEXURE-B) AS WELL AS NOTICE ISSUED UNDER SECTION 148 OF THE ACT DTD 27.04.2022 IN DIN AND NOTICE NO. ITBA/AST/S/148 1/2022-23/1042877006(1) (ANNEXURE-C) PASSED BY THE RESPONDENT FOR THE AY 2018-19 AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: i) Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner’s case and after examining the legality and validity thereof be pleased to quash and set aside the impugned order passed under clause (d) of section 148A of the Act dated 26.04.2022 in DIN and Notice No. ITBA/AST/F/148A/202-23/1042861000(1) (ANNEXURE-B) as well as notice issued under Section 148 of the Act dated 27.04.2022 in din and notice no. itba/ast/s/148 1/2022-23/1042877006(1) (ANNEXURE-C)passed by the Respondent for the Assessment Year 2018-19, and ii) Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner’s case and after examining the legality and validity thereof be pleased to quash and set aside the impugned order passed under Section 147 r.w.s 144 r.w.s 144B of the Act dated 19.12.2023 in DIN and Order No. ITBA/AST/S/147/2023-24/1058878545(1) (ANNEXURE-L) as well as notice of demand dated 19.12.2023 issued under Section 156 if the Act in DIN and Notice No. ITBA/AST/S/156/2023-24/1058878646(1) (ANNEXURE-L1) for the Assessment Year 2018-19 passed by the Respondent ii) Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner’s case and after examining the legality and validity thereof be pleased to quash and set aside the impugned order passed under Section 147 r.w.s 144 r.w.s 144B of the Act dated 19.12.2023 in DIN and Order No. ITBA/AST/S/147/2023-24/1058878545(1) (ANNEXURE-L) as well as notice of demand dated 19.12.2023 issued under Section 156 if the Act in DIN and Notice No. ITBA/AST/S/156/2023-24/1058878646(1) (ANNEXURE-L1) for the Assessment Year 2018-19 passed by the Respondent iii) A Writ of Mandamus or a writ in the nature of Mandamus, or any other appropriate Writ, Order or Direction under Article 226 of the Constitution of India ordering and directing the respondents by themselves their subordinate servants and agents to withdraw and cancel the impugned order passed under Section 147 r.w.s 144 r.w.s 144B of the Act dated 19.12.2023 in DIN and Order No. ITBA/AST/S147/2023-24/1058878545(1) (ANNEXURE-L) as well as Notice of Demand dated 19.12.2023 issued under Section 156 of the Act DIN and Notice No. ITBA/AST/S/156/2023-24/1058878646(1) (ANNEXURE-L1) for the Assessment Year 2018-19 passed by the Respondent and iv) A Writ of Prohibition or a writ in the nature of Prohibition, or any other appropriate writ, order or direction under Article 226 of the Constitution of India prohibiting - 4 - and restraining the Respondents by themselves their subordinate, servants and agents from taking any action in furtherance or consequent to impugned order passed under Section 147 r.w.s 144 r.w.s 144B of the Act dated 19.12.2023 in DIN and Order NO. ITBA/AST/S/147/2023-24/1058878545(1) (ANNEXURE-L) as well as notice of demand dated 19.12.2023 issued under Section 156 0f the Act DIN and Notice No. ITBA/AST/S/156/2023-24/1058878646(1) (ANNEXURE-L1) for the Assessment Year 2018-19 passed by the Respondent and v) Grant the interim relief in terms of prayer(iii) above, and vi) Issue such other order, writ or direction as this Hon’ble Court deems fit; and vii) Direct the Respondents to pay the costs of this Writ Petition.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents 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 notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 20.03.2022 was not received by petitioner and he was not aware of the notice and consequently, petitioner - 5 - could not submit its reply / response along with documents to the said notice. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the 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 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 petitioner has not submitted reply / response along with documents to Section 148A(b) notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply 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 reply - 6 - 4. Per contra, learned counsel for the respondents 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 petitioner has not submitted reply / response along with documents to Section 148A(b) notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply 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 reply - 6 - along with documents, I deem it just and appropriate to set aside the impugned order at Annexure-B dated 26.04.2022 passed under Section 148A(d) of the IT Act and subsequent notice / orders, etc., and remit the matter back to respondent No.1 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 notices / orders at Annexures – B, C, L and L1 are hereby set aside. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section 148A(b) of the IT Act at Annexure-A dated 20.03.2022. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient - 7 - NC: 2024:KHC:37196 WP No. 2473 of 2024 and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Bsv List No.: 1 Sl No.: 22