Wp/7777/2025 Of Channamallikarjun Buildcon Pvt. Ltd v. Income Tax Officer

Digitallysigned byLEELAVATHIS RLocation:High Court ofKarnataka IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21 DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 7777 OF 2025 (TIT) BETWEEN: CHANNAMALLIKARJUN BUILDCON PVT. LTD., NO. 797/2, PLOT NO. 14C, CHANNAMALLIKARJUNA TOWER PB ROAD, OPP. HESCOM, RANEBENNUR-581115 REP. BY ITS DIRECTOR SRI MAHENDRA GUNDAGATTI SON OF SRI UMESH, AGED ABOUT 46 YEARS REGISTERED UNDER COMPANIES ACT, 1956 …PETITIONER (BY SRI. SHREEHARI.,ADVOCATE) AND: 1. INCOME TAX OFFICER, WARD 1, HAVERI RENUKA ARCADE, HAVERI 581 110 WARD 1, HAVERI RENUKA ARCADE, HAVERI 581 110 SHIVAJI NAGAR, OPP TOWN POLICE STATION, THE ASSESSING OFFICER UNDER THE INCOME TAX ACT, 1961 UNDER THE INCOME TAX ACT, 1961 2. NATIONAL FACELESS ASSESSMENT CENTRE (NFAC), A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961 ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110 003 REP. BY PR. COMMISSIONER OF INCOME TAX (NEAC) CENTRE (NFAC), A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961 ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110 003 REP. BY PR. COMMISSIONER OF INCOME TAX (NEAC) 3. NATIONAL FACELESS APPEAL CENTRE REP. BY PRINCIPAL CHIEF COMMISISONER REP. BY PRINCIPAL CHIEF COMMISISONER WP No. 7777 of 2025 OF INCOME TAX (NEFAC), NEW DELHI ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110 003 4. KARNATAKA BANK LIMITED NO. 3/1 OF NARS NO. 893A, P B ROAD, GROUND FLOOR, MANJUNATHA COMPLEX, RANEBENNUR - 581 115 NO. 3/1 OF NARS NO. 893A, P B ROAD, GROUND FLOOR, MANJUNATHA COMPLEX, RANEBENNUR - 581 115 5. PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU-1 INCOME TAX DEPARTMENT BMTC BUILDING, 80 FEET ROAD NEAR KHB GAMES VILLAGE BENGALURU 560095 BENGALURU-1 INCOME TAX DEPARTMENT BMTC BUILDING, 80 FEET ROAD NEAR KHB GAMES VILLAGE BENGALURU 560095 (BY SRI.RAVIRAJ AND SRI M DILIP., ADVOCATES) …RESPONDENTS THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE U/S 143(2) OF THE INCOME TAX ACT, 1961 DTD. 02.06.2023 ISSUED BY THE R-2 FOR THE ASSESSMENT YEAR 2022-23 WHICH BEARS THE DIN VIZ., ITBA/AST/S/143(2)/2023-24/1053522407(1) AND ENCLOSED AS ANNX-C AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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 any other suitable writ for quashing of the notice u/s 143(2) of the Income Tax Act, 1961 dated 02/06/2023 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/AST/S/143(2)/2023-24/1053522407(1) and enclosed as Annexure C. quashing of the notice u/s 143(2) of the Income Tax Act, 1961 dated 02/06/2023 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/AST/S/143(2)/2023-24/1053522407(1) and enclosed as Annexure C. b. Issue a writ of certiorari or any other suitable writ for quashing of the assessment order under section 143(3) quashing of the assessment order under section 143(3) r.w.s 1448 of the Income Tax Act, 1961 dated 18/03/2024 passed by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/AST/S/143(3)/2023-24/1062858213(1) enclosed as Annexure G1. c. Issue a writ of certiorari or any other suitable writ for quashing of the notice of demand under section 156 of the Income Tax Act, 1961 dated 18/03/2024 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/156/2023-24/10608583662(1) and enclosed as Annexure G2. quashing of the notice of demand under section 156 of the Income Tax Act, 1961 dated 18/03/2024 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/156/2023-24/10608583662(1) and enclosed as Annexure G2. r.w.s 1448 of the Income Tax Act, 1961 dated 18/03/2024 passed by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/AST/S/143(3)/2023-24/1062858213(1) enclosed as Annexure G1. c. Issue a writ of certiorari or any other suitable writ for quashing of the notice of demand under section 156 of the Income Tax Act, 1961 dated 18/03/2024 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/156/2023-24/10608583662(1) and enclosed as Annexure G2. quashing of the notice of demand under section 156 of the Income Tax Act, 1961 dated 18/03/2024 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/156/2023-24/10608583662(1) and enclosed as Annexure G2. d. Issue a writ of certiorari or any other suitable writ for quashing of the computation of income dated 18/03/2024 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/822/2023-24/1062858388(1) and enclosed as Annexure G3. quashing of the computation of income dated 18/03/2024 issued by the Respondent No. 2 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/822/2023-24/1062858388(1) and enclosed as Annexure G3. e. Issue a writ of certiorari or any other suitable writ for quashing of the notice under section 226 of the Income-tax Act, 1961 dated 11/03/2025 issued by the Respondent No. 1 to the Respondent No. & for the Assessment Year 2022-23 which bears the DIN viz ITBA/COM/F/17/2024-25/1074355579(1) and enclosed as Annexure J. quashing of the notice under section 226 of the Income-tax Act, 1961 dated 11/03/2025 issued by the Respondent No. 1 to the Respondent No. & for the Assessment Year 2022-23 which bears the DIN viz ITBA/COM/F/17/2024-25/1074355579(1) and enclosed as Annexure J. f. Grant such other reliefs as this Hon'ble Court deems fit in this matter including but not limited to costs of this petition.” this matter including but not limited to costs of this petition.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. NC: 2025:KHC:12104 3. A perusal of the material on record will indicate that aggrieved by the order dated 02.06.2023 passed by respondent No.2 under Section 143(2) of the Income Tax Act at Annexure-C, pursuant to which, respondent No.2 issued the assessment order under Section 143(3) r.w.s 144B of the Act at Annexure-G1, notice of demand dated 18.03.2024 under Section 156 of the Act at Annexure – G2, computation of income dated 18.03.2024 at Annexure-G3 and Notice under Section 226 of the Income Tax Act dated 11.03.2025 by respondent No.1 at Annexure-J and as such, the petitioner is before this Court by way of the present petition. 4. In this context, it is pointed out that inability and omission on the part of the petitioner to submit replies to the notices issued by the respondents and to participate in the proceedings was due to bonafide and unavoidable circumstances and sufficient cause and consequently, the petitioner was not in a position to issue reply or appear before the respondents and participate in the said proceedings. It is submitted that the petitioner has a good case to urge on merits and if one more opportunity is granted in favour of the petitioner, the petitioner would submit its reply along with the documents and participate in NC: 2025:KHC:12104 the proceedings and as such, it is necessary that the impugned orders / Notices at Annexures – C, G1, G2, G3 and J be set aside and the matter be remitted back to the respondents by providing one more opportunity to the petitioner to submit its reply to the notices and direct the respondents to proceed further in accordance with law. NC: 2025:KHC:12104 the proceedings and as such, it is necessary that the impugned orders / Notices at Annexures – C, G1, G2, G3 and J be set aside and the matter be remitted back to the respondents by providing one more opportunity to the petitioner to submit its reply to the notices and direct the respondents to proceed further in accordance with law. 5. Per contra, learned counsel for the respondents submits that despite sufficient opportunity being granted in favour of the petitioner, the petitioner did not send its reply nor participated in the proceedings and consequently, the impugned order does not warrant interference by this Court and the petition is liable to be dismissed. 6. A perusal of the impugned order at Annexure – A will clearly indicate that the same was passed in the absence of the petitioner, who did not avail the opportunity provided by the respondent, who has proceeded to pass the impugned order. In view of the aforesaid facts and circumstances and specific assertions on the part of the petitioner that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to send reply enclosing documents and contest the proceedings and in order to provide one more opportunity to the petitioner, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh in accordance with law after providing one more opportunity to the petitioner in this regard. 7. In the result, I pass the following: ORDER (i) The impugned notice / orders at Annexures – G1, G2, G3 and J dated 18.03.2024, 18.03.2024, 18.03.2024 and 11.03.2025 respectively, are hereby set aside. G1, G2, G3 and J dated 18.03.2024, 18.03.2024, 18.03.2024 and 11.03.2025 respectively, are hereby set aside. (ii) Matter is remitted back to the stage of petitioner submitting reply to Show Cause Notice dated 09.02.2024 at Annexure-E under Section 143(2) and to proceed further in accordance with law. petitioner submitting reply to Show Cause Notice dated 09.02.2024 at Annexure-E under Section 143(2) and to proceed further in accordance with law. (iii) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before respondent No.2, who shall consider the same and pass appropriate orders in accordance with law within a period of three file its reply, pleadings, documents, etc., before respondent No.2, who shall consider the same and pass appropriate orders in accordance with law within a period of three NC: 2025:KHC:12104 WP No. 7777 of 2025 months from the date of receipt of copy of this order. (iv) All rival contentions are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 23