Wp/32967/2024 Of Shri. Kantharaj Chowdaiah Siddamma v. The Income Tax Officer

Digitally signed byLEELAVATHI S RLocation: HighCourt ofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 32967 OF 2024 (TIT) BETWEEN: SHRI. KANTHARAJ CHOWDAIAH SIDDAMMA, SON OF LATE CHOWDAIAH, AGED ABOUT 70 YEARS, NO.21, 3 CROSS, 3 MAIN ROAD, PAUL CHINNAPPA LAYOUT, BIKASIPURA, ISRO LAYOUT, J P NAGAR, BENGALURU – 500 078. …PETITIONER (BY SRI. RAVI SHANKAR S. V., ADVOCATE) AND: 1. THE INCOME TAX OFFICER, BESIDE JHANKAR TALKIES, KUMHARPARA, JAGDALPUR CHHATTISGARH – 494 001. BESIDE JHANKAR TALKIES, KUMHARPARA, JAGDALPUR CHHATTISGARH – 494 001. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX-1, NEW C.R. BUILDING CIVIL LINES, RAIPUR – 492 001. NEW C.R. BUILDING CIVIL LINES, RAIPUR – 492 001. 3. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO 401, 2 FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, DELHI – 110 003. NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO 401, 2 FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, DELHI – 110 003. INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, 4. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 1(3), CENTRAL REVENUE BUILDING, WP No. 32967 of 2024 QUEENS ROAD, BENGALURU – 560 001. (BY SRI. M. DILIP FOR R-1 TO R-4, ADVOCATE) …RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE ISSUED UNDER SECTION 148A(b) OF THE ACT DATED 20.03.2023 OF THE ACT FOR THE AY 2019-20 BY THE RESPONDENT NO.1 BEARING DIN AND NOTICE NO. ITBA/AST/F/148A(SCN)/2022-23/1051007352(1) HEREIN MARKED AS ANNEXURE-A 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 for the following reliefs: “(a) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice issued under section148A(b) of the Act dated 20.03.2023 of the Act for the AY 2019-20 by the Respondent No.1 bearing DIN & Notice No.ITBA/AST/F/148A(SCN)/2022-23/151007352(1) herein marked as Annexure – A. (b) Issue a writ or Certiorari or direction in the nature of a writ of certiorari quashing the order dated 30.03.2023 passed under section 148A(d) of the Act for the AY 2019-20 by the Respondent No.1 bearing DIN & Notice No. ITBA/AST/F/148A(SCN)/2022-23/1051630791(1) herein marked as Annexure – A1. (c) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice dated 30.03.2023 issued under section 148 of the Act for the AY 2019-20 by the Respondent No.1 bearing DIN & Notice No.ITBA/AST/S/148_1/2022-23/1051653747 (1) herein marked as Annexure – A2. (d) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order dated 16.03.2024 passed under section 147 of the Act for the AY 2019-20 by the Respondent No.3 bearing DIN & Order No. ITBA/AST/S/147/2023-24/1062731980(1) herein marked as Annexure – A3. (e) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 16.03.2024 issued under section 271AAC(1) of the Act for the A.Y. 2019-20 by the Respondent No.3 bearing DIN & Notice No. ITBA/PNL/S/271AAC(1)/2023-24/1062732076(1) herein marked as Annexure – A4. (f) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 29.09.2024 passed under section 271AAC(1) of the Act for the AY 2019-20 by the Respondent No.4 bearing DIN No. ITBA/PNL/F/271AAC(1)/2024-25/1069243882(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 16.03.2024 issued under section 271AAC(1) of the Act for the A.Y. 2019-20 by the Respondent No.3 bearing DIN & Notice No. ITBA/PNL/S/271AAC(1)/2023-24/1062732076(1) herein marked as Annexure – A4. (f) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 29.09.2024 passed under section 271AAC(1) of the Act for the AY 2019-20 by the Respondent No.4 bearing DIN No. ITBA/PNL/F/271AAC(1)/2024-25/1069243882(1) herein marked as Annexure – A5. (x) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 16.03.2024 issued under section 270A of the Act for the AY 2019-20 by the Respondent No.3 bearing DIN & Notice No. ITBA/PNL/F/270A/2023-24/1062732075(1) herein marked as Annexure – A6. (xi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 29.09.2024 passed under section 270A of the Act for the AY 2019-20 by the Respondent No.4 bearing DIN & Notice No. ITBA/PNL/F/270A/2024-25/1069243568(1) herein marked as Annexure – A7. (g) 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 petition and referring to the material on record, learned counsel for the petitioner has invited my attention to the impugned notices at Annexure-A issued under Section 148A(b) of the Income Tax Act in order to point out that the respondents have committed an error in alleging that the two transactions referred to in the said notice were not disclosed in the Income Tax Return submitted by the petitioner on 31.08.2019. 4. In this context, learned counsel for the petitioner invited my attention to Annexure-B, Income Tax Return Acknowledgment Receipt for the assessment year 2019-20 in order to point out that both the aforesaid transactions were stated and reflected in the Income Tax Return and consequently, respondents clearly erred in coming to the erroneous conclusion that the said transactions were not disclosed in the Income Tax Returns. It is submitted that due to bonafide reasons, unavoidable circumstances and sufficient cause, petitioner submitted reply after due date, as a result of which, respondent proceeded to pass the impugned order under Section 148A(d) of Income Tax Act on 30.03.2023 pursuant to which respondent issued impugned notices under Section 148 of the Income Tax Act followed by the impugned communication and orders which are assailed in the present petition. 5. Per contra, learned counsel for the respondent submits that there is no merit in the petition and the same is liable to be dismissed. 6. As rightly contended by the learned counsel for the petitioner, the two transactions referred to by the respondent in the impugned notice at Annexure-A dated 20.03.2023 which are reiterated in the impugned order at Annexure-A1 passed under - 6 - NC: 2025:KHC:9483 Section 148A(d) dated 30.03.2023 and also in the subsequent impugned correspondences and orders, are clearly mentioned, reflected and contained in the Income Tax Returns dated 31.08.2019 and consequently, respondents clearly fell in error in coming to the erroneous conclusion that aforesaid transactions were not stated or reflected in the Income Tax Return, which is a factually incorrect conclusion and unsustainable in law. 6. As rightly contended by the learned counsel for the petitioner, the two transactions referred to by the respondent in the impugned notice at Annexure-A dated 20.03.2023 which are reiterated in the impugned order at Annexure-A1 passed under - 6 - NC: 2025:KHC:9483 Section 148A(d) dated 30.03.2023 and also in the subsequent impugned correspondences and orders, are clearly mentioned, reflected and contained in the Income Tax Returns dated 31.08.2019 and consequently, respondents clearly fell in error in coming to the erroneous conclusion that aforesaid transactions were not stated or reflected in the Income Tax Return, which is a factually incorrect conclusion and unsustainable in law. 7. Further, the impugned order at Annexure-A1 dated 30.03.2023 and subsequent orders etc., are also contrary to the material on record and on this ground also, impugned orders deserves to be set aside and respondents were not justified in initiating the impugned proceedings against the petitioner, which is without jurisdiction and authority of law and deserves to be quashed by reserving liberty in favour of the respondents to take appropriate steps subject to all just exceptions and defences available to the petitioner. 8. In the result, I pass the following: ORDER i) The petition is hereby allowed. ii) The impugned orders / notices at Annexures - A1, A2, A3, A4, A5, A6, A7 dated 30.03.2023, 30.03.2023, 16.03.2024, 16.03.2024, 29.09.2024, 16.03.2024, 29.09.2024 respectively are hereby quashed. iii) Liberty is reserved in favour of the respondents to take appropriate steps subject to all just exceptions and defences available to the petitioner. MDS List No.: 1 Sl No.: 54 Sd/- (S.R.KRISHNA KUMAR) JUDGE