Wp/4331/2024 Of Yuvaraj Channagiri Srinivasan v. The Income Tax Officer

Digitally signed byVANDANA SLocation: HighCourt of Karnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25 DAY OF MARCH, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO.4331 OF 2024 (TIT) BETWEEN: YUVARAJ CHANNAGIRI SRINIVASAN SON OF LATE SRINIVAS, AGED ABOUT 54 YEARS, NO.536, 14 CROSS, VIKRAM NAGAR, ISRO LAYOUT BENGALURU – 560 078. PREVIOUSLY AT: NO.156, 2 STAGE PIPELINE, KUMARASWAMY LAYOUT, YELACHANAHALLI, BENGALURU – 560 078. …PETITIONER (BY SRI. RAVI SHANKAR S V., ADVOCATE) AND: 1.THE INCOME TAX OFFICER WARD - 5(3)(1), BANGALORE WARD - 5(3)(1), BANGALORE NO.59, HMT BHAVAN, BELLARY ROAD, GANGANAGAR, BENGALURU – 560 032. BELLARY ROAD, GANGANAGAR, BENGALURU – 560 032. 2.THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KARNATAKA AND GOA, C.R.BUILDING, QUEEN’S ROAD, BENGALURU - 560 001. 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. …RESPONDENTS (BY SRI. SUSHAL TIWARI, ADVOCATE) THIS W.P. 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 19/03/2022 OF THE ACT FOR THE ASSESSMENT YEAR 2015-16 BY THE R1 BEARING DIN AND NOTICE NO.ITBA/AST/F/148A(SCN)/2021-22/1041047094(1) HEREIN MARKED AS ANNEXURE-A AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner seeks the following reliefs: “a) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 19.03.2022 of the Act for the assessment year 2015-16 by the Respondent No.1 bearing DIN and Notice No.ITBA/AST/F/148A(SCN)/2021-22/1041047094(1) herein marked as Annexure-A. b) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order dated 30.03.2022 passed under Section 148A(d) of the Act for the assessment year 2015-16 by the Respondent No.1 bearing DIN & Notice No.ITBA/AST/F/148A/2021-22/ 1042180819(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 30.03.2022 passed under Section 148 of the Act for the assessment year 2015-16 by the Respondent No.1 bearing DIN & Notice No.ITBA/AST/F/148_1/2021-22/1042182023(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: 27.03.2023 passed under Section 147 of the Act of the assessment year 2015-16 by the Act for the Respondent No.3 bearing DIN & Notice No.ITBA/AST/S/147/2022-23/1051424376(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 order dated: 20.09.2023 passed under Section 271(1) (c) of the Act for the assessment year 2015-16 by the Respondent No.3 bearing DIN & Notice No.ITBA/PNL/F/271(1)(C)/2023-24/1056338090(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: 14.09.2023 passed under Section 271(1)(b) of the Act for the Assessment year 2015-16 by the Respondent No.3 bearing DIN & Notice No.ITBA/PNL/F/271(1)(b)/2023-24/1056076120(1) herein marked as Annexure-A5. 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 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, - 4 - NC: 2024:KHC:12378 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 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, - 4 - NC: 2024:KHC:12378 1961 (for short, ‘IT Act’) dated 19.03.2022 was not served upon the petitioner and the same was not sent to the existing e-mail and not received by petitioner and he was 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 if one more opportunity is granted, petitioner - 5 - would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure – B dated 30.03.2022 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 A, A1, A2, A3, A4 and A5 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 19.03.2022. (iv) Petitioner is directed to appear before respondent No.1 on 22.04.2024 without awaiting further notice from respondent No.1. (v) Petitioner is reserved liberty to file reply / response along with documents on 22.04.2024, pursuant to which, respondent No.1 shall provide sufficient and reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. SD/- JUDGE SV List No.: 1 Sl No.: 12