Wp/4197/2023 Of Ladwa Safety Solutions Pvt Ltd v. Assistant Commissioner Of Income Tax

Digitallysigned by BLAVANYALocation:HIGHCOURT OFKARNATAKA NC: 2023:KHC:20391 WP No. 4197 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14 DAY OF JUNE, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV -WRIT PETITION NO.4197 OF 2023 (TIT) BETWEEN: LADWA SAFETY SOLUTIONS PVT. LTD. (A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT NO.1 OF 1956) (MANUFACTURER AND EXPORTER OF ROAD SAFETY EQUIPMENTS) HAVING ITS OFFICE AT: SAFETY HOUSE, NO.152 20 CROSS, 17 MAIN ROAD BENGALURU -560 004 REP. BY ITS MANAGING DIRECTOR SRI KISHORE BABU KANNEGANTI AGED ABOUT 66 YEARS … PETITIONER (BY SRI BALRAM R. RAO.,ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT, DELHI II FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM DELHI- 110 003 NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT, DELHI II FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM DELHI- 110 003 2. INCOME TAX OFFICER WARD-4(3)(2) BENGALURU HAVING ITS OFFICE AT BMTC BUILDING WARD-4(3)(2) BENGALURU HAVING ITS OFFICE AT BMTC BUILDING WP No. 4197 of 2023 80 FEET ROAD, KORAMANGALA BENGALURU – 560 034 (BY SRI SUSHAL TIWARI, ADVOCATE) … RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AND SET ASIDE THE ORDER PASSED UNDER SECTION 147 READ WITH SECTION 144B OF THE INCOME TAX ACT DATED 24/03/2022 FOR THE ASSESSMENT YEAR 2017-18 (ANNEXURE-D) AND NOTICE DATED 24/03/2022 ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT FOR THE ASSESSMENT YEAR 2017-18 (ANNEXURE-E) AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has assailed the order dated 24.03.2022 passed under Section 147 read with Section 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’ for short) for the assessment year 2017-18 at Annexure-D and also the notice dated 24.03.2023 issued under Section 156 of the Act at Annexure-E for the assessment year 2017-18. The petitioner has sought for an issuance of mandamus directing the respondents to withdraw and cancel the order dated 24.03.2022 passed under Section 147 read with Section 144B of the Act for the assessment year 2017-18 at Annexure-D and notice dated 24.03.2023 issued under Section 156 of the Act - 3 - for the assessment year 2017-18 at Annexure-E. The petitioner has also sought for a writ of prohibition. 2. It is the case of the petitioner that though notice under Section 148 of the Act was issued on 28.03.2021 at Annexure-A and subsequently, the notice under Section 142(1) came to be issued on 21.01.2022, the petitioner’s return in response to the same under Section 148 of the Act could not be uploaded due to technical glitch. It is stated that the said order has been brought to the notice of the authority, in terms of the e-mail on 05.03.2022. It is submitted that the reply by the Department on 08.03.2022 at Annexure-B was to the effect that the issue has been escalated to the concerned team and it would take some time to resolve the issue. The petitioner submits that, eventually, the petitioner has filed its return on 15.03.2022 at Annexure-C. However, it is submitted that the same has not been taken note of, while passing the assessment order at Annexure-D, wherein the Assessing Officer has observed that the return in response to the notice under Section 148 of the Act was not filed within the time allowed and it being non est,same could not be taken note of. Thus, it is contended that the notice under Section 143(2) of the Act is not required to be - 4 - - 4 - issued and proceeded further, resulting in an assessment order passed under Section 147 read with Section 144 of the Act. Accordingly, it is the contention of the petitioner that its returns having not been taken note of, was the result of failure to upload due to technical glitch on the part of the department and the petitioner cannot be penalised and has been deprived of the right to have its return filed and considered. 3. Learned counsel for Revenue, would however, submit that the representation of the petitioner is belated and has been made only in March, 2022. Accordingly, it is submitted that the petitioner has left over its right. 4. Heard learned counsel for petitioner and learned counsel for respondents. 5. Learned counsel for petitioner has pointed out the e-mail response received by the department at Annexure-B, wherein clearly there is a reference to there being an issue, which would be resolved. Admittedly, subsequently, the petitioner’s return in response to the notice under Section 148 of the Act has been filed and accepted under the system. The fact that there was a technical glitch as asserted by the petitioner, has not been explained away or controverted with substantive material. Taking note of the said aspect that there was a technical glitch, the petitioner is required to be afforded another opportunity of having its return filed in response to the notice issued under Section 148 of the Act, be considered in accordance with law. Accordingly, the following: ORDER i)The petition is disposed off; ii)The matter is remanded to the authority for issuance of notice under Section 148 of the Act; issuance of notice under Section 148 of the Act; iii)The return filed by the petitioner as referred to in the assessment order at Annexure-D, is required to be taken note of and further proceeded with;the assessment order at Annexure-D, is required to be taken note of and further proceeded with; iv)The return is to be deemed to have filed within time while noticing that there was a technical glitch as would be made out from the e-mail response from Annexure-D. Consequently, the orders at Annexures-D and E are set-aside and the consequent action taken by the Revenue Department consequent to the orders at Annexures-D and E is set aside. while noticing that there was a technical glitch as would be made out from the e-mail response from Annexure-D. Consequently, the orders at Annexures-D and E are set-aside and the consequent action taken by the Revenue Department consequent to the orders at Annexures-D and E is set aside. All contentions are kept open. LB NC: 2023:KHC:20391 WP No. 4197 of 2023 Sd/- JUDGE