Wp/24957/2024 Of Smt Suguna v. Income Tax Officer

Digitally signedby LEELAVATHIS RLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12 DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO.24957 OF 2024 (TIT) BETWEEN: SMT. SUGUNA W/O. MUNIYAPPA T.K., AGE: 64 YEARS, OCCUPATION: HOMEMAKER, RESIDENT OF: 378, SFS, 407, NEAR MOTHER DAIRY, YELAHANKA NEW TOWN, YELAHANKA BENGALURU – 560 064. …PETITIONER (BY SRI. ANKUR P.D., ADVOCATE FOR SRI. BALACHANDRAN B S., ADVOCATE) AND: 1.INCOME TAX OFFICER, WARD 6(3)(1), BMTC BUILDING, 80 FEET ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU – 560 095. 2.THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, 2 FLOOR, JAWAHARLAL NEHRU STADIUM NEW DELHI – 110 003. 3.THE PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU – 6, BENGALURU – 6, BMTC BUILDING, 80 FEET ROAD, - 2 - WP No. 24957 of 2024 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU – 560 095. (BY SRI. M. DILIP, ADVOCATE) …RESPONDENTS THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH ANNEXURE-A – IMPUGNED SHOW CAUSE NOTICE DATED 03/02/2023 ISSUED BY THE R1 UNDER SECTION 148A(b) OF THE IT ACT FOR THE AY 2016-17 IN DIN AND NOTICE NO.ITBA/AST/F/148A(SCN)/2022-23/ 1049392537(1) 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 the following reliefs: (a) Annexure-A – impugned show cause notice dated 03.02.2023 issued by the R1 under Section 148A(b) of the IT Act for the AY 2016-17 in Din and Notice No.ITBA/AST/F/148A(SCN)/2022-23/1049392537(1); (b) Annexure-B – impugned order dated 11.03.2023 passed by the R1 under Section 148A(d) of the IT Act for the AY 2016-17 in DIN and Notice No. ITBA/AST/F/148A/2022-23/1050650074(1); (c) Annexure-C – impugned notice dated 18.03.2023 issued by the R1 under Section 148 of the IT Act for the AY 2016-17 in DIN and Notice No. ITBA/AST/S/148_1/2022-23/1050941799(1); (d) Annexure-F – impugned assessment order dated 26.02.2024 passed by the R1 under Section 147 read - 3 - with Section 144 of the IT Act for the AY 2016-17 in DIN and Order No. ITBA/AST/S/147/2023-24/1061477461(1); e) Annexure-F1 – impugned computation sheet dated 26.02.2024 issued by the R1 under Section 147 read with Section 144 of the IT Act for the AY 2016-17 in DIN and Document No. ITBA/AST/S/114/2023-24/1061477464(1); (f) Annexure-F2 – impugned demand notice dated 26.02.2024 issued by the R1 under Section 156 of the IT Act for the AY 2016-17 in DIN and Notice No. ITBA/AST/S/156/2023-24/1061477462(1); (g) Annexure-G – impugned penalty order dated 18.06.2024 passed by the R2 under Section 271(1)(b) of the IT Act for the AY 2016-17 in DIN No.ITBA/PNL/F/ 271(1)(b)/2024-25/1065696257(1); (h) Annexure-G1 – impugned computation sheet dated 18.06.2024 issued by the R2 under Section 271(1)(b) of the IT Act for the AY 2016-17 in DIN and Order No. ITBA/PNL/S/271(1)(b)/2023-24/1061477491(1) & (i) Annexure-G2 – impugned demand notice dated 18.06.2024 issued by the R1 under Section 156 of the IT Act for the AY 2016-17 in DIN and Notice No. ITBA/PNL/S/156/2024-25/1065691979(1). 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 memorandum of petition and referring to the material on (h) Annexure-G1 – impugned computation sheet dated 18.06.2024 issued by the R2 under Section 271(1)(b) of the IT Act for the AY 2016-17 in DIN and Order No. ITBA/PNL/S/271(1)(b)/2023-24/1061477491(1) & (i) Annexure-G2 – impugned demand notice dated 18.06.2024 issued by the R1 under Section 156 of the IT Act for the AY 2016-17 in DIN and Notice No. ITBA/PNL/S/156/2024-25/1065691979(1). 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 memorandum of 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 03.02.2023 was not received by petitioner and she was not aware of the notice and consequently, petitioner could not submit her 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 her 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 along with documents, I deem it just and appropriate to set aside the impugned order at Annexure-B dated 11.03.2023 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) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures B, C, F, F1, F2, G, G1, G2 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 03.02.2023. (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 and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 39