MRS LALITHA RAJ vs. INCOME TAX OFFICER WARD 1(1)(1)

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WP/10993/2025HC KarnatakaKAHC01022585202509 April 2025Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the petition. It was an undisputed fact that the petitioner had not submitted a reply to the Section 148A(b) notice. In light of the petitioner's assertion of bonafide reasons, unavoidable circumstances, and sufficient cause for her inability to respond, and her request for one more opportunity, the Court deemed it just and appropriate to set aside the impugned assessment order dated 26.02.2025 (passed under Section 147 read with Section 144B), the computation sheet, the demand notice under Section 156, and the order passed under Section 148A(d) dated 29.03.2024. The matter was remitted back to Respondent No. 2 for reconsideration afresh from the stage of submitting the petitioner's reply to the Section 148A(b) notice. Liberty was granted to the petitioner to submit additional pleadings and documents, which the respondent was directed to consider before proceeding further in accordance with law.

What were the facts?

The petitioner, Mrs. Lalitha Raj, filed a writ petition before the High Court of Karnataka challenging an assessment order dated 26.02.2025, a computation sheet, and a demand notice issued by the Income Tax Officer, Ward 1(1)(1) (Respondent No. 1) and the Assessment Unit (Respondent No. 2). The petitioner contended that she did not receive the notice issued under Section 148A(b) of the Income Tax Act, 1961, and therefore could not submit a reply. She claimed this omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and sought an opportunity to respond. The respondents argued that the petition had no merit and should be dismissed.

What were the issues?

1. Whether the assessment order dated 26.02.2025, computation sheet, and demand notice issued by the respondents are liable to be quashed, considering the petitioner's claim of non-receipt of the Section 148A(b) notice and her inability to respond due to bonafide reasons, unavoidable circumstances, and sufficient cause? Assessee's Contention: The petitioner argued that she did not receive the notice under Section 148A(b) of the Income Tax Act, 1961, and consequently could not submit her reply and documents. She asserted that this failure was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and requested another opportunity to respond. The petitioner sought to set aside the impugned orders and notices to allow her to do so. Revenue's Contention: The respondents contended that there was no merit in the petition and that it was liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148A(b),Section 147,Section 144B,Section 156,Section 148A(d)

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:15265 WP No. 10993 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 10993 OF 2025 (T-IT) BETWEEN:

MRS. LALITHA RAJ, WIFE OF MR. V. GOVINDA RAJ, AGED ABOUT 55 YEARS, RESIDING AT NO. 207/2, SRI. SAPTHAGIRI NIWAS, 5TH CROSS, KAMMANAHALLI MAIN ROAD, KACHARAKANAHALLI, BENGALURU – 560 084. …PETITIONER (BY SRI. SYED KHAMRUDDIN, ADVOCATE)

AND:

1.

INCOME TAX OFFICER WARD 1(1)(1) BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BANGALORE KARNATAKA 560 095

2.

ASSESSMENT UNIT REPRESENTED BY ADDITIONAL

/ JOINT / DEPUTY / ASSISTANT COMMISSIONER

OF INCOME TAX/ INCOME TAX OFFICER. INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWARHARLAL NEHRU STADIUM, DELHI 110 003.

3.

NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED BY ADDITIONAL /

JOINT / DEPUTY / ASSISTANT COMMISSIONER

Digitally signed by CHANDANA B M Location: High Court of Karnataka

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NC: 2025:KHC:15265 WP No. 10993 of 2025

OF INCOME TAX/ INCOME TAX OFFICER. INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWARHARLAL NEHRU STADIUM, DELHI 110 003 …RESPONDENTS (BY SRI.M. DILIP, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DTD. 26.02.2025 BEARING DIN NO. ITBA/AST/S/147/2024-25/1073727387(1) PASSED BY THE RESPONDENT NO.2 (ANNEXURE-A) 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: “i) Quash the Assessment Order dated 26.02.2025 bearing DIN No.ITBA/AST/S/147/2024- 25/1073727387 (1) passed by the 2nd Respondent Annexure-A); ii) Consequently, quash the computation sheet bearing DIN No.ITBA/AST/S/330/2024-25/1073727475(1) and Demand Notice under Section 156 bearing DIN No.ITBA/AST/S/156/2024-25/1073727458(1) (Annexure-A1 and A2); iii) Pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.”

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NC: 2025:KHC:15265 WP No. 10993 of 2025

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 not aware of the notice and consequently, petitioner could not submit its 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.

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NC: 2025:KHC:15265 WP No. 10993 of 2025

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 one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned orders at Annexure – A dated 26.02.2025 passed under Section 147 read with section 144B of the Income Tax Act, computation sheet dated 26.02.2025 at Annexure-A1 and demand notice under Section 156 dated 26.02.2025 at Annexure-A2 and order at Annexure – E passed under Section 148A(d) dated 29.03.2024 subsequent notice / orders, etc., and remit the matter back to respondent No.2 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

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NC: 2025:KHC:15265 WP No. 10993 of 2025

(i) The petition is hereby allowed. (ii) The impugned order at Annexure – A dated 26.02.2025 passed under Section 147 read with section 144B of the Income Tax Act, computation sheet dated 26.02.2025 at Annexure-A1 and demand notice under Section 156 dated 26.02.2025 at Annexure-A2 and order at Annexure – E passed under Section 148A(d) dated 29.03.2024, are hereby set aside. (iii) Matter is remitted back to respondent No.2 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 dated 15.02.2024.

(iv) Liberty is reserved in favour 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 MDS; List No.: 2 Sl No.: 47

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