MATADA CHANNABASAIAH SIDDABASAIAH vs. THE INCOME TAX OFFICER

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WP/16843/2024HC KarnatakaKAHC01034415202403 April 2025Bench: S.R.KRISHNA KUMAR5 pages
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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. Considering the petitioner's assertion that this omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and that he would 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 the respondent for reconsideration 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. The Court did not explicitly leave any issue undecided.

What were the facts?

The petitioner, an Assistant Teacher, filed a writ petition challenging notices and orders issued by the Income Tax Officer, Ward-1, Yadgir, concerning Assessment Year 2019-2020. The challenged actions include notices dated 08.02.2023 under Section 148A(b), an order dated 16.03.2023 under Section 148A(d), a notice dated 16.03.2023 under Section 148, and an ex-parte assessment order dated 29.03.2024 under Section 147 read with Section 144 of the Income Tax Act, 1961. The petitioner contended that he did not receive the Section 148A(b) notice and therefore could not submit a reply, attributing this omission to bonafide reasons, unavoidable circumstances, and sufficient cause.

What were the issues?

1. Whether the notice issued by the respondent under Section 148A(b) of the Income Tax Act, 1961, was duly served on the petitioner, and if not, whether the subsequent proceedings are vitiated. Assessee's Contention: The petitioner argued that the notice under Section 148A(b) was not received, and consequently, he was unaware of it and could not submit a reply. This failure was due to bonafide reasons, unavoidable circumstances, and sufficient cause. The petitioner sought an opportunity to respond to the notice. Revenue's Contention: The respondent contended that the petition had no merit and was liable to be dismissed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:14271 WP No. 16843 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO.16843 OF 2024 (T-IT)

BETWEEN:

MATADA CHANNABASAIAH SIDDABASAIAH S/O CHANNABASAIAH AGED ABOUT 39 YEARS ASSISTANT TEACHER MAVINAKOTE VILLAGE HANUMANHALLI POST HONNALI TALUK DAVANAGERE DISTRICT 577224 …PETITIONER (BY SRI.R.CHANDRASHEKAR AND KASHINATH KALMATH, ADVOCATES FOR SRI.RAMA MURTHY R, ADVOCATE)

AND:

THE INCOME TAX OFFICER WARD-1, VISHWAGURU COMPLEX RURAL POLICE STATION ROAD YADGIR - 585201 …RESPONDENT (BY SRI.THIRUMALESH M, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICES DTD. 08.02.2023 ISSUED U/SEC.148A(b) OF THE ACT (ANNX-A) (ITBA/AST/F/148A(SCN)/ ISSUED FOR THE ASSESSMENT YEAR 2019-2020 BY THE RESPONDENT AND ETC.

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

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NC: 2025:KHC:14271 WP No. 16843 of 2024

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

“ A) The petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the Notices dated 08.02.2023 issued u/sec.148(b) of the Act (Annexure-A) (ITBA/AST/F/148A(SCN) issued for the assessment year 2019-2020 by the Respondent.

B) The petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the order dated 16.03.2023 made u/sec.148A(d) of the Act, for the assessment year 2019-2020 (Annexure-B) (ITBA/AST/F/148A/(1 by the Respondent. C) The petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the notice issued u/sec.148 of the Act dated 16.03.2023 for the assessment year 2019-20 (Annexure-C) (ITBA/AST/S/148_1/(1)) issued by the Respondent.

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NC: 2025:KHC:14271 WP No. 16843 of 2024

D) The petitioner humbly pray this Hon'ble Court may be pleased to issue a Writ of Certiorari or in the nature of Writ of Certiorari quashing the ex-party order of assessment dated 29.03.2024 made u/Sec.147 read with Section 144 of the Act, for the assessment year 2019-20 (Annexure-F) (ITBA/AST/S/147/2023-24/1063607320(1)) passed by the Respondent.

E) This Hon'ble Court may be pleased to issue such other relief or reliefs as this Hon'ble Court deems fit, in the interest of justice, in the petitioner's case."

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 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

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NC: 2025:KHC:14271 WP No. 16843 of 2024

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. 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 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–F dated 29.03.2024 passed under Section 147 read with 144 of the Income Tax Act, the order at Annexure-B dated 16.03.2023 passed under Section 148(d) of the Income Tax Act and subsequent notice / orders, etc., and remit

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NC: 2025:KHC:14271 WP No. 16843 of 2024

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. 7. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices/orders at Annexures - B, C 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-A dated 08.02.2023.

(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

NBM List No.: 1 Sl No.: 6

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