Wp/31546/2024 Of Ramesh Sharma v. Assistant Commissioner Of Income Tax

Digitallysigned byCHANDANAB MLocation:High CourtofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3 DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO.31546 OF 2024 (TIT) BETWEEN: RAMESH SHARMA S/O SRI T. R. SHARMA, AGED ABOUT 40 YEARS, PROP GOMTI INCINCO, NO.3B-2, KIADB INDUSTRIAL AREA, 1 PHASE, KUMBALAGODU, MYSORE ROAD, BENGALURU – 560 074 PRESENTLY R/AT NO.53, 8 CROSS, JAIMUNIRAO CIRCLE, AGRAHARA DASARAHALLI, BENGALURU – 560 079 …PETITIONER (BY SRI. SHREEHARI KUTSA, ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 3(1)(1), BENGALURU BMTC BUILDING, 80FT ROAD, 6 BLOCK, KORAMANGALA, BENGALURU – 560 095 THE ASSESSING OFFICER UNDER THE INCOME TAX ACT, 1961 CIRCLE 3(1)(1), BENGALURU BMTC BUILDING, 80FT ROAD, 6 BLOCK, KORAMANGALA, BENGALURU – 560 095 THE ASSESSING OFFICER UNDER THE INCOME TAX ACT, 1961 2. PRINCIPAL COMMISSIONER OF INCOME TA, BENGALURU – 3, THE APPROVING AUTHORITY UNDER THE SECTION 151 OF THE INCOME TAX ACT, 1961, BMTC BUILDING, 80 FT ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE,, KORAMANGALA, BENGALURU – 560 095. 3. NATIONAL FACELESS ASSESSMENT CENTRE (NFAC) A CENTRE DESCRIBED UNDER SECTION 144B, OF THE INCOME TAX ACT, 1961, ROOM NO.401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003 REP. BY PR. CHIEF COMMISSIONER OF INCOME TAX (NeAC) 4. ASSESSMENT UNIT A UNIT CREATED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961, ROOM NO.401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. REP. BY ITS PR. CHIEF COMMISSIONER OF INCOME TAX (NeAC) …RESPONDENTS (BY SRI. M. THIRUMALESH, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE DIGITALLY SIGNED AND COMMUNICATED ORDER UNDER SECTION 270A OF THE INCOME TAX ACT, 1961 DATED 01.08.2024 ISSUED BY THE RESPONDENT NO. 1 WHICH BEARS THE DIN ITBA/PNL/F/270A/2024-25/1067238174(1) ENCLOSED AS ANNEXURE J1 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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) Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the digitally signed and communicated order under section 270A of the Income Tax Act, 1961 dated 01.08.2024 issued by the Respondent No.1 which bears the DIN ITBA/PNL/F/270A/2024-25/1067238174(1) and enclosed as Annexure - J1. b) Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the digitally signed and communicated notice of demand under section 156 of the Income Tax Act, 1961 dated 01.08.2024 issued by the Respondent No.1 which bears the DIN ITBA/PNL/S/156/2024-25/1067233501(1) and enclosed as Annexure – J2. c) Issue a Writ of Certiorari or direction in the nature of writ of certiorari quashing the digitally signed and communicated computation sheet dated 01.08.2024 issued by the Respondent No.1 which bears the DIN ITBA/PNL/S/270A/2023- 24/1063048628(1) and enclosed as Annexure – J3. d) 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 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 274 r.w.s. 270A of the Income Tax Act, 1961 (for short, ‘IT Act’) was not received by petitioner and - 4 - NC: 2025:KHC:14318 WP No. 31546 of 2024 d) 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 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 274 r.w.s. 270A of the Income Tax Act, 1961 (for short, ‘IT Act’) was not received by petitioner and - 4 - NC: 2025:KHC:14318 WP No. 31546 of 2024 he was not aware of the notice and consequently, petitioner 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 274 r.w.s. 270A 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 274 r.w.s. 270A 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 - 5 - NC: 2025:KHC:14318 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 – J1 dated 01.08.2024, passed under Section 270A of the Income Tax Act and subsequent notice / orders, etc., and remit the matter back to respondent No.3 for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 274 r.w.s. 270A notice and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned notices / orders at Annexures J1 and J2 are hereby set aside. (iii) Matter is remitted back to respondent No.3 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section 274 r.w.s. 270A of the IT Act at Annexure – E dated 19.03.2024. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 1 Sl No.: 80