SRI. SADATH ALI KHAN vs. THE INCOME TAX OFFICER

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WP/25008/2024HC KarnatakaKAHC01052747202424 September 2024Bench: S.R.KRISHNA KUMAR7 pages
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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. Considering the petitioner's assertion of bonafide reasons, unavoidable circumstances, and sufficient cause for the omission, and the request for one more opportunity, the Court deemed it just and appropriate to set aside the impugned order dated 16.03.2023 passed under Section 148A(d) and subsequent notices/orders. The matter was remitted back to the Income Tax Officer for reconsideration from the stage of submitting a reply to the Section 148A(b) notice. 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.

What were the facts?

The petitioner, Sri. Sadath Ali Khan, represented by his GPA holder, filed a writ petition before the High Court of Karnataka. The petition challenged multiple notices and an assessment order issued by the Income Tax Officer and the Principal Commissioner of Income Tax. The core issue raised by the petitioner was that he did not receive the notice issued under Section 148A(b) of the Income Tax Act, dated 14-02-2023, and therefore, could not submit a reply. The petitioner claimed this omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and sought an opportunity to respond.

What were the issues?

1. Whether the notice issued under Section 148A(b) of the Income Tax Act, 1961, dated 14.02.2023, 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 his inability to respond was due to bonafide reasons, unavoidable circumstances, and sufficient cause. He sought an opportunity to submit his reply. Revenue's Contention: The revenue contended that there was no merit in the petition and that it 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 142(1),Section 147,Section 144,Section 144B,Section 274,Section 271F,Section 152

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:39505 WP No. 25008 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 25008 OF 2024 (T-IT) BETWEEN:

SRI. SADATH ALI KHAN S/O SRI HAYATHULLA KHAN, AGED ABOUT 54 YEARS, R/AT NO.33, BARLEY LANE, GOODMAYES EXCESS IG3 8 XE, UK, REPRESENTED BY HIS GPA HOLDER, SRI ETHASHAM ALI KHAN, AGED ABOUT 60 YEARS, S/O HAYATHULLA KHAN, R/AT NO.10/17, H.M.ASTORIA APARTMENTS, BENSON CROSS ROAD, BENSON TOWN, BENGALURU-560 046. …PETITIONER (BY SRI. VASANTHAPPA.,ADVOCATE)

AND:

1.

THE INCOME TAX OFFICER *WARD NO.1(2)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU 560 095.

2.

THE PRINCIPAL COMMISSIONER OF INCOME TAX-2, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. …RESPONDENTS (BY SRI.E I SANMATHI.,ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I) QUASHING THE NOTICE ISSUED UNDER SECTION 148A(D) OF INCOME TAX ACT-1961, DATED 14-02-2023 GENERATED VIDE DIN & NOTICE NO.ITBA/AST/F/148A/2022-23/1050840635(1) VIDE (ANNEXURE-D-1). AND ETC.,

*Corrected vide Court order dated: 22.01.2025

Digitally signed by LEELAVATHI S R Location: High Court of Karnataka

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NC: 2024:KHC:39505 WP No. 25008 of 2024

THIS WRIT 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 writ of certiorari quashing the notice issued under section 148A(d) of Income Tax Act-1961, dated 14- 02-2023 generated vide DIN & Notice No.ITBA/AST/F/148A/2022-23/1050840635(1) vide (Annexure-D-1)

ii) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing the notice, dated 16/03/2023 issued under section 148, of the Income Tax Act, bearing DIN and Notice No.ITBA/AST/S/148-1/2022-23/1050844064(1) vide Annexure- D-2.

iii) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing notice dated 10/11/2023 under section 142 (1), of the Income Tax Act bearing DIN No. ITBA/AST/F/142(1)/2023- 24/1057870277(1) vide Annexure-D3.

iv) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing assessment order dated 10/11/2023/07-12-2023 passed under section 147,

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read with Section 144, Read with Section 144B of the Income Tax Act, bearing DIN No. ITBA/AST/S/147/2023-24/1060323463(1) vide Annexure-D-4.

v) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing notice issued under Section 142 (1) of the Act, dated 07/12/2023, bearing DIN and Notice No. ITBA/AST/F/142(1)/2023-24/1058570446(1) vide Annexure-D-5.

vi) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing show notice issued stating why proposed variation should not be made under the Act, dated 15/01/2024, bearing DIN and Show Notice No. ITBA/AST/F/144(SCN)/2023- 24/1059733993(1) vide Annexure-D-6.

vii) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing penalty notice issued under section 274 read with section 271F of the Income Tax Act, dated 31/01/2024 bearing DIN No.ITBA/PNL/S/271F/2023-24/1060323644(1) vide Annexure- D-7.

viii) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing computed the penalty, dated 31/01/2024 bearing DIN No. ITBA/AST/S/114/2023-24/1060323580 (1) respectively vide Annexure-D-8.

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NC: 2024:KHC:39505 WP No. 25008 of 2024

ix) Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing, demand notice issued under Section 152 of the Income Tax Act, dated 31/01/2024 bearing DIN and Notice No. ITBA/AST/S/156/2023-24/1060323549(1) vide Annexure-D9.

x. Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing show cause notice, dated 02/07/2024, passed under section 271F, of the Income Tax Act, bearing Din and Letter No. ITBA/PNL/F/17/2024-25/1066338737(1) vide Annexure-D-10.

xi. Issue a writ of Certiorari or direction in the nature of writ of certiorari quashing non-compliance notice issued under the Income Tax Act, dated 21/06/2024, bearing Din No ITBA/PNL/F/17/2024- 25/1065906658(1) vide Annexure-D-11.

xii. 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

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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’), dated 14.02.2023 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.

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

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NC: 2024:KHC:39505 WP No. 25008 of 2024

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-D1 dated 16.03.2023 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:

ORDER

(i) The petition is hereby allowed.

(ii) Impugned notices / orders at Annexures-D1, D2, D3, D5, D6, D7, D8, D9, D10 and D11 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

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Cause Notice under Section 148A(b) of the IT Act dated 14.02.2023.

(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.: 24

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