Wp/35481/2024 Of Kithannahalli Channigarangappa v. Deputy Commissioner Of Income Tax

Digitallysigned byCHANDANAB MLocation:High CourtofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO.35481 OF 2024 (TIT) BETWEEN: KITHANNAHALLI CHANNIGARANGAPPA RAMESH S/O CHANNIGARANGAPPA, AGED 53 YEARS, 7/1, BYANARAHALLI VILLAGE, HEROHALLI BYADARAHALLI, MAGADI MAIN ROAD, BANGALORE-560 091. …PETITIONER (BY SRI. K M SHIVAYOGISWAMY, ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF INCOME TAX DC/ACIT CIRCLE 6(1)(1), BMTC BUILDING, 80 FEET ROAD, 6 BLOCK, KORAMANGALA, BANGALORE – 560 095. DC/ACIT CIRCLE 6(1)(1), BMTC BUILDING, 80 FEET ROAD, 6 BLOCK, KORAMANGALA, BANGALORE – 560 095. 2. NATIONAL FACELESS ASSESSMENT CENTRE, ADDITIONAL / JOINT / DEPUTY / ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2 FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-3, THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-3, THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-3, BMTC BUILDING, KORAMANGALA, BANGALORE – 560 095. BANGALORE – 560 095. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF CERTIORARI OR DIRECTIONS IN THE NATURE OF CERTIORARI TO QUASH THE NOTICE ISSUED UNDER CLAUSE (B) OF SECTION 148A OF THE INCOME TAX ACT, 1961 VIDE DIN AND NOTICE NO ITBA/AST/F/148A(SCDN)/2022-23/1049417075(1) DATED 04.02.2023 BY THE FIRST RESPONDENT FOR AY 2016-17, VIDE ANNEXURE-B. 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: “i) Issue Writ of Certiorari or directions in the nature of Certiorari to Quash the notice issued under clause (b) of section 148A of the Income Tax Act, 1961 vide DIN: & Notice No: ITBA/AST/F/148A(SCDN)/2022-23/1049417075(1) dated: 04.02.2023 by the First Respondent for AY 2016-17, vide Annexure-‘B’. ii) Issue Writ of Certiorari or directions in the nature of Certiorari to Quash the order passed under Section 147 R/w 144, 144B dated 20.03.2024 bearing No. DIN No. ITBA/AST/S/147/2023-24/1063025506(1) passed by the 2[nd]respondent in relation to the assessment year 2016-17 vide Annexure-‘C’. iii) Issue writ of certiorari or directions in the nature of Certiorari to quash the Computation Sheet issued by the 2[nd]respondent in relation to the Assessment year 2016-17 bearing DIN & Document No.ITBA/AST/S/114/2023-24/1063025784(1) dated: 20.03.2024 vide Annexure-‘D’. iv) Issue Writ of Certiorari or directions in the nature of Certiorari to quash the penalty order passed U/s 271(1)(b) by the 2[nd] respondent in relation to the Assessment year 2016-17 bearing DIN & Notice No.ITBA/PNL/f/271(1)(b)/2024-25/1064977838(1) dated: 17.05.2024 vide Annexure-‘E’. v) Issue Writ of Certiorari or directions in the nature of Certiorari to quash the penalty order passed U/s 271(1)(c) by the 2[nd] respondent in relation to the Assessment year 2016-17 bearing DIN & Notice No. ITBA/PNL/f/271(1)/2024-25/1064977838(1) dated: 17.05.2024 vide Annexure-F. vi) Issue Writ of Certiorari or directions in the nature of certiorari to quash the Notice of Demand issued under Section 156 of the Act dated 20.03.2024 issued by the 2[nd] respondent for the assessment year 2016-17 bearing DIN & Notice No. ITBA/AST/S/156/2023-24/1063025802(1) dated 20.03.2024 vide Annexure-G. vii) Grant such other reliefs as this Honourable High Court may think fit including the cost of this writ petition.” v) Issue Writ of Certiorari or directions in the nature of Certiorari to quash the penalty order passed U/s 271(1)(c) by the 2[nd] respondent in relation to the Assessment year 2016-17 bearing DIN & Notice No. ITBA/PNL/f/271(1)/2024-25/1064977838(1) dated: 17.05.2024 vide Annexure-F. vi) Issue Writ of Certiorari or directions in the nature of certiorari to quash the Notice of Demand issued under Section 156 of the Act dated 20.03.2024 issued by the 2[nd] respondent for the assessment year 2016-17 bearing DIN & Notice No. ITBA/AST/S/156/2023-24/1063025802(1) dated 20.03.2024 vide Annexure-G. vii) Grant such other reliefs as this Honourable High Court may think fit including the cost 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 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’) was not received by petitioner and he was NC: 2025:KHC:11846 not aware of the notice and consequently, petitioner could not submit his 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 NC: 2025:KHC:11846 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 – C dated 20/03/2024 passed under Section 147 read with Section 144 read with Section 144B of the Income Tax Act, the order at Annexure – E dated 17/05/2024 passed under Section 271(1)(b) of the Income Tax Act and the order at Annexure – F dated 17/05/2024 passed under Section 217(1) (c) of the Income Tax 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) The impugned notices / orders at Annexures – C, D, E, F and G 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–B dated 04.02.2023. (iv) Liberty is reserved in favor 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.: 120