YASHASWINI BUILDLERS PRIVATE LTD vs. THE INCOME TAX OFFICER

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WP/24040/2024HC KarnatakaKAHC01048025202402 April 2025Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryAllowed

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. However, considering the petitioner's assertion that their omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause (specifically mentioning ill health), and their request for one more opportunity, the Court deemed it just and appropriate to set aside the impugned orders and notices. The matter was remitted back to the Income Tax Officer (Respondent No.1) for reconsideration from the stage of submitting a reply to the Section 148A(b) notice. The petitioner was granted liberty to submit additional pleadings and documents, which the respondent was directed to consider before proceeding further in accordance with the law. The Court expressly left no issue undecided.

What were the facts?

The petitioner, Yashaswini Builders Private Ltd., filed a writ petition before the High Court of Karnataka challenging orders and notices issued by the Income Tax Department for Assessment Year 2015-16. The primary challenge was to the order dated 30.03.2022 passed under Section 148A(d), the notice dated 30.03.2022 under Section 148, the order dated 05.03.2023 under Section 147 r.w.s 144B, and the order dated 30.08.2023 under Section 271(1)(c). The petitioner contended that they did not receive the show-cause notices issued under Section 148A(b) dated 17.03.2022 and 18.03.2022, as they were uploaded to the portal, and the petitioner was unaware of the portal, thus preventing them from submitting a reply. The respondents argued that the petition had no merit.

What were the issues?

1. Whether the petitioner's failure to submit a reply to the show-cause notices 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 respond. Assessee's Contention: The petitioner argued that they did not receive the show-cause notices dated 17.03.2022 and 18.03.2022 issued under Section 148A(b) as they were uploaded to the IT portal, which the petitioner was unaware of. This inability to respond was due to bonafide reasons, unavoidable circumstances, and sufficient cause. They sought an opportunity to submit their reply and documents. Revenue's Contention: The revenue 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 147,Section 144B,Section 148,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:13953 WP No. 24040 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 24040 OF 2024 (T-IT)

BETWEEN:

YASHASWINI BUILDERS PRIVATE LTD., (BUILDER / DEVELOPER), REPRESENTED BY ITS MANAGING DIRECTOR, SRI MAHESH GURAJAPALLI, S/O BALASUBRAMANIACHAR, NO. 40 AND 416, 6TH CROSSS, BHUVANESHWARI NAGAR, BANGALORE – 560 024. UNDER COMPNIES ACT, 1956. …PETITIONER (BY SRI. R. CHANDRASHEKAR AND SRI. KASHINATH KALMATH, FOR SRI. RAMA MURTHY R., ADVOCATES)

AND:

1.

THE INCOME TAX OFFICER, WARD -7(1)(3), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BANGALORE - 560 095.

2.

ASSESSMENT UNIT, REPRESENTED BY THE ASSESSING OFFICER, INCOME TAX DEPARTMENT, NEW DELHI - 110 001. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER DATES 30.03.2022 MADE U/S 148A(D) OF THE ACT, FOR THE ASSESSMENT YEAR 2015-16 (ANNEXURE-D) VIDE DIN

Digitally signed by CHANDANA B M Location: High Court of Karnataka

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NC: 2025:KHC:13953 WP No. 24040 of 2024

ITBA/AST/F/148A/2022-23/1042039758(1) PASSED BY THE 1ST RESPONDENT 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: “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 order dated 30-03-2022 made u/s 148A(d) of the Act, for the assessment year 2015-16 (Annexure-D) vide DIN ITBA/AST/F/148A/2022- 23/1042039758(1)] passed by the 1 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 Notice issued u/s.148 of the Act dated 30.03.2022 for the assessment year 2015-2016 (Annexure-E) [ITBA/AST/S/148_1/2022-23/1042073306(1)] issued by the 1ª 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 order dated 05-03-2023 made u/s 147 r.w.s 144B of the Act, for the assessment year 2015-16 (Annexure-F) (ITBA/AST/S/147/2022-23/1050425756(1)] passed by the 2nd Respondent;

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NC: 2025:KHC:13953 WP No. 24040 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 order dated 30-08-2023 made u/s 271(1)(c) of the Act for the assessment year 2015-16 (Annexure H) [ITBA/PNL/271(1) C) /2023-24/1055624369] passed by 2nd 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.”

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 the show- cause notices issued by respondents No.1 under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 17.03.2022 and 18.03.2022 was not received by petitioner and the same were uploaded in the portal and consequently, petitioner could not submit its reply / response along with documents to the said notices as he had no knowledge of the said IT portal. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the

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NC: 2025:KHC:13953 WP No. 24040 of 2024

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 a reply along with documents to Section 148A(b) notice was due to his ill health and 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 – D dated 30.03.2022 passed under Section 148A(d) of the IT Act, order at

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NC: 2025:KHC:13953 WP No. 24040 of 2024

Annexure-F dated 05.03.2023 and subsequent notice / orders, etc., and remit the matter back to respondent No.1 for reconsideration afresh from the stage of submitting reply 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-D, E, F and H are hereby set aside. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of petitioner submitting reply to the Show Cause Notices under Section 148A(b) of the IT Act at dated 18.03.2022..

(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

BMC List No.: 1 Sl No.: 71

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