SHARANA BASAVA vs. INCOME TAX OFFICER

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WP/14814/2024HC KarnatakaKAHC01028851202407 August 2024Bench: S.R.KRISHNA KUMAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Karnataka allowed the petition. It was an undisputed fact that the petitioner had not submitted a reply to the Section 148A(b) notice. Considering the petitioner's assertion of bonafide reasons, unavoidable circumstances, and sufficient cause for the omission, and the request for one more opportunity to submit a reply, the Court found it just and appropriate to set aside the impugned order dated 30.03.2022 passed under Section 148A(d) and subsequent notices/orders. The matter was remitted back to the Income Tax Officer (Respondent No.1) for reconsideration. The petitioner was granted liberty to submit replies, responses, pleadings, and documents, and the respondent was directed to consider them, provide a reasonable opportunity, and proceed in accordance with the law. The Court expressly did not decide on the merits of the original assessment or penalties, focusing solely on the procedural lapse.

What were the facts?

The petitioner, Sharana Basava, filed a writ petition before the High Court of Karnataka challenging several notices and orders issued by the Income Tax Department for Assessment Year 2015-16. These included notices under Section 148A(b), 148A(d), and Section 148 of the Income Tax Act, 1961, as well as an order under Section 147 read with Section 144/144B, and penalty orders under Section 271(1)(b), Section 271(1)(c), and Section 271F. The petitioner contended that the notice under Section 148A(b) was not received, leading to an inability to submit a reply due to bonafide reasons and sufficient cause. The respondents argued that the petition lacked merit.

What were the issues?

1. Whether the notice under Section 148A(b) of the Income Tax Act, 1961, dated 22.03.2022, was duly served on the petitioner, and if not, whether the petitioner had sufficient cause for not responding. Assessee's Contention: The petitioner argued that the notice under Section 148A(b) was not received, and consequently, they could not submit a reply or response along with documents. This omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause. They sought an opportunity to respond. Revenue's Contention: The respondents contended that the petition had no merit and was liable to be dismissed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:31439 WP No. 14814 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 14814 OF 2024 (T-IT) BETWEEN:

1.

SHARANA BASAVA AGED ABOUT 37 YEARS, S/O. SHANKARAPPA NO.33, GROUND FLOOR 2ND MAIN ROAD BAMBOO GARDEN MANJUNATHA NAGAR MAIN ROAD BEHIND LABOUR OFFICE NAGASANDRA POST BENGALURU - 560 073 …PETITIONER (BY SRI. RAVI SHANKAR S.V., ADVOCATE) AND:

1.

INCOME TAX OFFICER WARD - 5 (3) (5) BANGALORE - 560032

2.

NATIONAL FACELESS ASSESSMENT CENTRE 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 - 110003

3.

THE PRINCIPAL COMMISSIONER OF INCOME TAX THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX,

Digitally signed by REKHA R Location: High Court of Karnataka

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NC: 2024:KHC:31439 WP No. 14814 of 2024

CR BUILDING BANGALORE - 560001 …RESPONDENTS (BY SRI. Y.V. RAVI RAJ, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE UNDER SECTION 148A(B) OF THE ACT, DATED 22/03/2022 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2021-22/1041260747(1), ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2015-16 HEREIN MARKED AS ANNEXURE-A AND ETC.

THIS PETITION, COMING ON FOR ORDERS, 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) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 22/03/2022 bearing DIN No.ITBA / AST / F / 148A(SCN) / 2021-22 / 1041260747(1) issued by the respondent No.1 for the assessment year 2015-16 herein marked as Annexure-A. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(d) of the Act dated 30/03/2022 bearing DIN No.ITBA/AST/F/148A/2021-22/1042173069(1) issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure-A1. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under

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NC: 2024:KHC:31439 WP No. 14814 of 2024

section 148 of the Act, dated 30/03/2022 bearing DIN No. ITBA/AST/S/148_1/2021-22/1042178383(1), issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure-A2. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed u/s 147 r.w.s 144, 144B dated 02/03/2023 bearing DIN No. ITBA/AST/S/147/2022-23/1050345344(1), issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A3. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 271(1)(b) of the Act dated 21/09/2023 bearing DIN No.ITBA/PNL/F/271(1)(b)/2023-24/1056377816(1) issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A4. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271(1)(b) of the Act dated 22/09/2023 bearing DIN No.ITBA/PNL/F/271(1)(C) /2023-24/1056442504(1) issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A5. vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271F of the Act dated 21/09/2023 bearing DIN No.ITBA/PNL/F/271F/2023-24/1056377814(1) issued by the Respondent No.2 for the assessment year 2015-16 herein marked as Annexure-A6.

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NC: 2024:KHC:31439 WP No. 14814 of 2024

viii) And pass such other orders as this Hon’ble court deems fit and proper in the interest of justice and equity.”

2.

Heard learned counsel for the petitioners 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 notices issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 22.03.2022 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.

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NC: 2024:KHC:31439 WP No. 14814 of 2024

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 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 order at Annexure-A1 dated 30.03.2022 passed under Section 148A(d) of the IT 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:

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NC: 2024:KHC:31439 WP No. 14814 of 2024

ORDER

(i) The petition is hereby allowed.

(ii) Impugned notices / orders at Annexures - A1, A2, A3, A4, A5 and A6 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-A dated 22.03.2022.

(iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law.

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

MDS List No.: 1 Sl No.: 6

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