YOUNG MENS INDIAN ASSOCIATION vs. THE INCOME TAX OFFICER

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WP/12134/2025HC KarnatakaKAHC01027073202524 April 2025Bench: S.R.KRISHNA KUMAR8 pages
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What did the High Court hold?

The High Court allowed the petition, setting aside the impugned notices and orders. The Court found merit in the petitioner's assertion that their inability to respond to the Section 148A(b) notice was due to bonafide reasons and sufficient cause. Consequently, the matter was remitted back to the Assessing Officer (Respondent No. 1) for reconsideration. The petitioner was granted liberty to submit their reply and any supporting documents, which the respondents were directed to consider before proceeding further in accordance with the law. The Court emphasized that this decision was based on providing an opportunity to the petitioner to present their case, given the circumstances.

What were the facts?

The petitioner, Young Mens Indian Association, filed a writ petition challenging assessment orders, penalty orders, and notices issued by the Income Tax Department for Assessment Year 2015-16. The petitioner contended that they did not receive the notice issued under Section 148A(b) of the Income Tax Act, 1961, and therefore could not submit a reply. They claimed this omission was due to bonafide reasons and sufficient cause, and sought an opportunity to respond. The respondents argued that the petition lacked merit. The High Court noted that it was undisputed that the petitioner had not submitted a reply to the Section 148A(b) notice.

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, warranting an opportunity to respond? Assessee's Contention: The petitioner argued that they did not receive the Section 148A(b) notice and were unaware of it, preventing them from submitting a reply. They asserted that this omission was due to bonafide reasons and sufficient cause, and requested a chance to submit their response. They relied on the principle of natural justice and the need for a fair opportunity to be heard. Revenue's Contention: The revenue contended that the petition had no merit and should be dismissed.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 156,Section 271(1)(c),Section 271F,Section 271(1)(b),Section 148A,Section 148A(b),Section 148A(d)

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:16938 WP No. 12134 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12134 OF 2025 (T-IT)

BETWEEN:

1.

YOUNG MENS INDIAN ASSOCIATION REGISTERED UNDER THE KARNATAKA SOCIETY PAN NO. AAAAY 1007 E HAVING REGISTERED OFFICE AT NO. 5, ASSAYE ROAD, ULSOOR BANGALORE, KARNATAKA - 560 04 REPRESENTED BY ITS SECRETARY MR. JOSPEH KENNEDY S/O LATE IRUDAYNATHAN JOSEPH NOGALAN AGED ABOUT 59 YEARS …PETITIONER

(BY SRI. RAJEEV CHANNAPPA NULVI, ADVOCATE)

AND:

1.

THE INCOME TAX OFFICER WARD 1(2)(1), BANGALORE BMTC BUILDING, 6TH BLOCK NEAR KHB GAMES VILLAGE KORMANGALA, BENGALURU - 560 095.

2.

THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA REGION CR BUILDING, QUEENS ROAD BENGALURU - 560 001.

Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA

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3.

THE ASSESSMENT UNIT INCOME TAX DEPARTMENT THE NATIONAL FACELESS ASSESSMENT CENTRE NORTH BLOCK, NEW DELHI DELHI-110 001. …RESPONDENTS

(BY SRI. M. DILIP, ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 25/03/2023, UNDER SEC. 147 R.W.S 144 R.W.S 144B OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE NO. ITBA/AST/S/147/2022- 23/1051281144(1) ALONG WITH COMPUTATION SHEET DATED 25/03/2023, BEARING DIN AND NOTICE NO ITBA/AST/S/115/2022-23/1051281367(1) AND NOTICE OF DEMAND DATED 25/03/2023, UNDER SEC. 156 OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE NO ITBA/AST/S/156/2022-23/1051281270(1), PASSED BY THE RESPONDENT AUTHORITY NO. 3 THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, PERTAINING TO ASSESSMENT YEAR 2015-16, VIDE ANNEXURE-A, A1 AND A2 RESPECTIVELY 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

Sri.M.Dilip, learned counsel accepts notice for the respondents. 2. In this petition, petitioner seeks the following reliefs:

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NC: 2025:KHC:16938 WP No. 12134 of 2025

“ A. To issue a WRIT of CERTIORARI, quashing the impugned Assessment Order dated 25/03/2023, under Sec.147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/AST/S/ 147/2022-23/1051281144(1) along with Computation Sheet dated 25/03/2023, bearing DIN and Notice No.: ITBA/AST/S/115/2022-23/1051281367(1) and Notice of Demand Dated:25/03/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No. ITBA/AST/S/156/2022-23/1051281270(1), passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-A, A1 and A2 respectively; and

B. To issue a WRIT of CERTIORARI, quashing the impugned Penalty Order dated: 21/08/2023, under Sec.271(1)(c) of the Income Tax Act, 1961, bearing DIN and NOTICE No.ITBA/PNL/F/271(1)(C)/2023- 24/1055526478(1) along with Computation Sheet Dated 21/08/2023, bearing DIN and Notice No. ITBA/PNL/S/271(1)(c)/2022-23/1051281655(1) and Notice of Demand Dated: 21/08/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2023-24/1055526227(1) passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to

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Assessment Year 2015-16, vide Annexure-B, B-1 and B-2 respectively; and

C. To issue a WRIT of CERTIORARI, quashing the impugned Penalty Order Dated:21/08/2023, under Sec.271F of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/F/271F/2023-24/ 1055526482(1) along with Computation Sheet Dated 21/08/2023, bearing DIN and Notice No.ITBA/PNL/S/271F/2022-23/1051281656(1) and Notice of Demand dated: 21/08/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No: ITBA/PNL/S/156/2023-24/1055526230(1) passed by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-C, C1 and C2 respectively; and

D. To issue a WRIT of CERTIORARI, quashing the impugned Penalty Order dated:22/08/2023, under Sec.271(1)(b) of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/F/271(1)(B)/2023-24/ 1055526514(1) along with Computation Sheet Dated: 22/08/2023, bearing DIN and Notice No: ITBA/PNL/S/271(1)(b)/2022-23/1051281646(1) and Notice of Demand Dated: 22/08/2023, under Sec.156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2023-24/1055526254(1) passed

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by the Respondent Authority No.3 - The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2015-16, vide Annexure-D, D-1 and D-2 respectively; and

E. To issue a WRIT of CERTIORARI, quashing the impugned Notice Dated:31/03/2022, bearing DIN and Notice No:ITBA/AST/S/148-1/2021-22/ 1042370058(1), under Sec.148 of the Income Tax Act, 1961, issued by the Income Tax Officer, Ward - 1(2)(1), Bangalore, in respect of the petitioner, pertaining to Assessment Year 2015-16, vide Annexure-G and

F. To issue a WRIT of CERTIORARI, quashing the impugned order dated 31/03/2022, vide DIN No.ITBA/AST/F/148A/2021-22/1042357185(1), under Sec.148A(d) of the Income Tax Act, 1961, passed by the Income Tax Officer, Ward - 1(2)(1), Bangalore, in respect of the petitioner, pertaining to Assessment Year 2015-16, vide Annexure-F, and

G. To issue a WRIT of CERTIORARI, quashing the impugned Show Cause Notice dated: 23/03/2022, vide DIN No.ITBA/AST/F/148A(SCN)/2021-22/ 1041353135(1), under Sec.148A(b) of the Income Tax Act, 1961, issued by the Income Tax Officer, Ward - 1(2)(1), Bangalore, in respect of the petitioner,

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pertaining to Assessment Year 2015-16, Vide Annexure-E, and

H. To pass any such other Writ, Order or Direction as this Hon'ble Court might deem fit to be issued in the fact and circumstances of the case in the interest of justice and equity."

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 material on record, learned counsel for the petitioner submits that notices 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

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NC: 2025:KHC:16938 WP No. 12134 of 2025

respondents may be directed to proceed further in accordance with law. 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 Section 148A(b) notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that its 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 Annexures–A, A1, A.2, B, B1, B.2, C, C1, C.2, D, D1, D2, G, F 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.

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7.

In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices/orders at Annexures-A, A1, A2, B, B1, B2, C, C1, C2, D, D1, D2, G and F 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-E dated 23.03.2022.

(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

NBM List No.: 2 Sl No.: 34

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