YOUNG MENS INDIAN ASSOCIATION vs. THE ADDITIONAL/ JOINT/DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER,

PDF · subscribers
WP/12008/2025HC KarnatakaKAHC01027075202525 April 2025Bench: S.R.KRISHNA KUMAR6 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. It was an undisputed fact that the petitioner had not submitted a reply to the show-cause notice dated April 7, 2021. However, considering the petitioner's assertion that their inability to respond was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and their willingness to submit a reply if granted another opportunity, the Court deemed it just and appropriate to set aside the impugned orders and notices. The matter was remitted back to Respondent No. 1 for reconsideration. The petitioner was granted liberty to submit additional pleadings and documents, which the respondents were directed to consider before proceeding in accordance with the law. The Court's reasoning was based on providing a fair opportunity to the assessee to present their case, thereby upholding principles of natural justice.

What were the facts?

The petitioner, Young Mens Indian Association, filed a writ petition challenging assessment orders, computation sheets, and demand notices for Assessment Year 2018-19. These orders were passed by Respondent No. 1, the Additional/Joint/Deputy/Assistant Commissioner of Income Tax, under Section 143(3) read with Sections 143(3A) and 143(3B) of the Income Tax Act, 1961, dated April 15, 2021. Additionally, a penalty order under Section 270A dated August 7, 2021, and subsequent demand notices were challenged. The petitioner contended that they did not receive a show-cause notice dated April 7, 2021, which was sent to their chartered accountant, who failed to inform them or file a reply. The petitioner claimed this omission was due to bonafide reasons and sufficient cause, seeking an opportunity to submit their response.

What were the issues?

1. Whether the impugned assessment order dated 15/04/2021, under Section 143(3) r.w.s 143(3A) and 143(3B) of the Income Tax Act, 1961, and the subsequent penalty order dated 07/08/2021 under Section 270A of the Income Tax Act, 1961, are liable to be quashed on the grounds of non-receipt of a crucial show-cause notice and lack of opportunity to present a defense. Assessee's Contention: The petitioner argued that the show-cause notice dated April 7, 2021, was not received by them, as it was sent to their chartered accountant who failed to inform them or file a reply. They claimed this was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and sought an opportunity to submit their reply. The petitioner relied on the principle of natural justice, seeking a chance to be heard. Revenue's Contention: The revenue 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 143(3),Section 143(3A),Section 143(3B),Section 156,Section 270A

AI-generated summary — verify with the full judgment below

- 1 -

NC: 2025:KHC:17390 WP No. 12008 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.12008 OF 2025 (T-IT) BETWEEN:

YOUNG MENS INDIAN ASSOCIATION REGISTERED UNDER THE KARNATAKA SOCIETY ACT, 1960, PAN NO. AAAAY 1007E HAVING REGISTERED OFFICE AT NO. 5, ASSAYE ROAD, ULSOOR, BANGALORE, KARNATAKA - 560 042. REPRESENTED BY ITS SECRETARY MR. JOSPEH KENNEDY S/O LATE IRUDAYNATHAN JOSEPH NOGAIAH AGED ABOUT 59 YEARS …PETITIONER (BY SRI RAJESH CHANNAPPA NULVI, ADVOCATE) AND:

1.

THE ADDITIONAL/ JOINT/DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER, INCOME TAX DEPARTMENT, THE NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI, DELHI-110 001.

2.

THE INCOME TAX OFFICER, WARD 1(2)(1), BANGALORE BMTC BUILDING, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORMANGALA, BENGALURU - 560 095 …RESPONDENTS (BY SRI M.DILIP, ADVOCATE FOR R1 AND R2)

Digitally signed by MALATESH K C Location: HIGH COURT OF KARNATAKA

- 2 -

NC: 2025:KHC:17390 WP No. 12008 of 2025

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 15/04/2021, UNDER SEC. 143(3) R.W.S 143(3A) AND 143(3B) OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE NO ITBA/AST/S/143 (3)/2021-22/1032446527(1) ALONG WITH COMPUTATION SHEET DATED 15/04/2021, BEARING DIN AND NOTICE NO.ITBA/AST/S/185/2021-22/1032446584 (1) AND NOTICE OF DEMAND DATED 15/04/2021, UNDER SEC. 156 OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE NO. ITBA/AST/S/156/2021-22/1032446644(1), PASSED BY THE RESPONDENT AUTHORITY NO.1 THE ADDITIONAL/ JOINT/ DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX OFFICER, INCOME TAX DEPARTMENT, PERTAINING TO ASSESSMENT YEAR 2018-19, VIDE ANNEXURE-A, A-1 AND A-2 RESPECTIVELY.

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 Sri.M.Dilip, learned counsel accepts notice for the respondents. 2. In this petition, petitioner seeks the following reliefs: A. To issue a WRIT of CERTIORARI, quashing the impugned assessment Order dated 15/04/2021, under sec. 143(3) r.w.s 143(3A) and 143(3B) of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/AST/S/143(3)/2021- 22/1032446527(1) along with computation Sheet dated 15/04/2021, bearing DIN and Notice No.ITBA/AST/S/185/2021-22/1032446584(1) and Notice of Demand dated 15/04/2021, under Sec. 156 of the

- 3 -

NC: 2025:KHC:17390 WP No. 12008 of 2025

Income Tax Act, 1961, bearing DIN and Notice No.ITBA/AST/S/156/2021-22/1032446644(1), passed by the Respondent Authority No.1 The Additional/Joint/Deputy/Assistant Commissioner of Income Tax/ Income Tax Officer, Income Tax Department, pertaining to Assessment Year 2018-19, vide Annexure-A, A-1 and A-2 respectively; and B. To issue a WRIT of CERTIORARI quashing the impugned penalty order dated 07/08/2021, under sec. 270A of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/F/270A/2021-22/1034712628(1) along with Computation Sheet dated 07/08/2021, bearing DIN and Notice No.ITBA/PNL/S/270A/2021- 22/1032446574(1) and Notice of Demand dated: 22/03/2023, under sec. 156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2021- 22/1034711340(1) passed by the Respondent Authority No. 1 The Additional/Joint/Deputy/Assistant Commissioner Of Income Tax /Income Tax Officer, Income Tax Department, pertaining to assessment year 2018-19, vide Annexure-B, B-1 and B-2 respectively.

3.

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 4. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the

- 4 -

NC: 2025:KHC:17390 WP No. 12008 of 2025

material on record, learned counsel for the petitioner submits that pursuant to the notice issued under section 143(2) of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 28.09.2019, the chartered accountant of the petitioner filed reply to the said notice on behalf of the petitioner. Subsequently, respondent No.1 issued a show-cause notice 07.04.2021 which was not received by petitioner and it was not aware of the notice since the said notices were sent to the chartered accountant of the petitioner. The said chartered accountant of the petitioner neither informed the petitioner regarding the notice nor did he filed any reply 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 show-cause notice dated 07.04.2021 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.

- 5 -

NC: 2025:KHC:17390 WP No. 12008 of 2025

5.

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. 6. A perusal of the impugned order would indicate that it is an undisputed fact that petitioner has not submitted reply/response along with documents to show-cause notice dated 07.04.2021. Under these circumstances, in view of the specific assertion on the part of the petitioner that its inability and omission to submit reply along with documents to show- cause 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 Annexures – A, A1, A2, B, B1, B2, E 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 show-cause notice dated 07.04.2021 and to proceed further in accordance with law. 7. In the result, pass the following: ORDER (i) The petition is hereby allowed.

- 6 -

NC: 2025:KHC:17390 WP No. 12008 of 2025

(ii) Impugned notices/orders at Annexures-A, A1, A2, B, B1, B2 and E 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 dated 07.04.2021.

(iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondents, who shall consider the same and proceed further in accordance with law.

Sd/- (S.R.KRISHNA KUMAR) JUDGE

kcm List No.: 2 Sl No.: 17

More judgments on Section 156

All 694 judgments and leading authorities on Section 156 →

Recent GST High Court judgments

Search GST case law →