SRI DORERAJU SAMBASIVAIAH vs. THE INCOME TAX OFFICER

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WP/12023/2025HC KarnatakaKAHC01026994202525 April 2025Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the petition. It noted that it was undisputed that the petitioner had not submitted a reply to the Section 148A(b) notice. However, accepting the petitioner's assertion that the omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause, the Court deemed it appropriate to grant one more opportunity. The Court set aside the Assessment Order dated 05.02.2025 (Annexure-A) passed under Section 147 read with Section 144B of the IT Act, the Demand Notice dated 05.02.2025 (Annexure-B) issued under Section 156 of the IT Act, and another order passed under Section 148A(d) dated 14.03.2024. The matter was remitted back to Respondent No.1 for reconsideration afresh from the stage of submitting the petitioner's reply to the notice under Section 148A(b) of the IT Act. Liberty was granted to the petitioner to submit additional pleadings and documents, which the respondent was directed to consider before proceeding in accordance with law.

What were the facts?

The petitioner, Sri Doraraju Sambasivaiah, filed a writ petition before the High Court of Karnataka challenging an Assessment Order dated 05.02.2025 and a consequential Demand Notice dated 05.02.2025, both issued by the Income Tax Department (respondents). The petitioner contended that he did not receive the notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961, and therefore, was unaware of it. Consequently, he could not submit a reply or supporting documents. The petitioner claimed this omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and sought an opportunity to rectify it. The respondents argued that the petition lacked merit and should be dismissed.

What were the issues?

1. Whether the petitioner's failure to submit a reply to the notice issued under Section 148A(b) of the Income Tax Act, 1961, was due to bonafide reasons, unavoidable circumstances, and sufficient cause, thereby warranting an opportunity to submit the reply? (Mixed question of law and fact) Assessee's Contentions: The petitioner argued that he never received the notice under Section 148A(b) of the IT Act and was thus unaware of the proceedings. He claimed his inability to respond was due to bonafide reasons and sufficient cause. He requested a fresh opportunity to submit his reply and documents, and for the respondents to proceed accordingly. Revenue's Contentions: The respondents contended that the petition had no merit and ought to be dismissed.

Which sections of the Income-tax Act were involved?

Section 148A,Section 147,Section 144B,Section 156

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:17389 WP No. 12023 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. 12023 OF 2025 (T-IT)

BETWEEN:

SRI DORERAJU SAMBASIVAIAH AGED ABOUT 65 YEARS, NO. 8/1, 9TH MAIN, C K STREET, BANGALORE NORTH, BANGALORE - 560 003, KARNATAKA, INDIA …PETITIONER (BY SRI HIRAN KRISHNASWAMY, ADVOCATE) AND:

1.

THE INCOME TAX OFFICER WARD 2(2)(5), BANGALORE, AREA CODE: KAR, AO TYPE: W AO NUMBER :5, RANGE CODE: 222. BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU, KARNATAKA -560 095.

2.

ASSESSMENT UNIT INCOME TAX DEPARTMENT …RESPONDENTS (BY SRI E.I.SANMATHI, ADVOCATE)

THIS WRIT PETITION IS UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ASSESSMENT ORDER DATED 05.02.2025 (ANNEXURE-A) AND CONSEQUENTLY THE DEMAND NOTICE DATED 05.02.2025 (ANNEXURE-B) BEARING NO.ITBA/AST/5/156/24- 25/1072925519(1) ISSUED BY R2.

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

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NC: 2025:KHC:17389 WP No. 12023 of 2025

THIS PETITION, COMING ON FOR FINAL 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: “Set aside the Assessment Order dated 05.02.2025 (Annexure-A) bearing No.ITBA/AST/S/147/2024-25/ 1072925405(1) and consequently the Demand Notice dated 05.02.2025 (Annexure-B) bearing No. ITBA/AST/ S/156/2024-25/1072925519(1), issued by R2.”

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

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NC: 2025:KHC:17389 WP No. 12023 of 2025

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. 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 reply along with

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NC: 2025:KHC:17389 WP No. 12023 of 2025

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 order at Annexure – A dated 05.02.2025, passed under Section 147 r.w.s. 147 r.w.s. 144B of the Income Tax Act, the notice at Annexure- B dated 05.02.2025 issued under section 156 of the Income Tax 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 and B as well as order passed

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NC: 2025:KHC:17389 WP No. 12023 of 2025

under Section 148A(d) of the IT Act dated 14.03.2024 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 dated 13.02.2024.

(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

kcm List No.: 2 Sl No.: 18

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