SMT. BHAGYALAKSHMI vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX

PDF · subscribers
WP/2559/2024HC KarnatakaKAHC01002611202413 August 2024Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the petition. It noted that the petitioner did not submit her reply to the notice dated 30.03.2022 issued under Section 148, nor to the notices issued under Section 142(1) dated 09.05.2022 and 10.11.2022, nor to the show cause notice dated 24.01.2023, which led to the passing of the impugned ex-parte assessment order. However, accepting the petitioner's submission that she could not submit her reply due to bonafide reasons and unavoidable circumstances, the Court set aside the impugned order. The matter was remitted back to the second respondent from the stage of the petitioner submitting her reply to the notices issued under Sections 148 and 142(1) of the Income Tax Act, as well as to the show cause notice. The second respondent was directed to consider these submissions and proceed further in accordance with law. No specific amount in dispute was recorded. The Court did not leave any issue undecided.

What were the facts?

The petitioner, Smt. Bhagyalakshmi, filed a writ petition before the High Court of Karnataka challenging an ex-parte assessment order dated 08.02.2023, passed by Respondent No. 2 (National Faceless Assessment Center, Delhi) under Section 144 read with Section 148 of the Income Tax Act, 1961, for Assessment Year 2018-19. The petitioner contended that due to bonafide reasons and unavoidable circumstances, she could not submit her reply to the notice issued under Section 148 dated 30.03.2022, nor to the notices under Section 142(1) dated 09.05.2022 and 10.11.2022, and the show cause notice dated 24.01.2023. Consequently, the assessment order was passed ex-parte. The petitioner sought to quash this order and requested a remand to allow her to file her reply and documents.

What were the issues?

1. Whether the ex-parte assessment order dated 08.02.2023, passed under Section 144 read with Section 148 of the Income Tax Act, 1961, for Assessment Year 2018-19, deserves to be quashed on the grounds of the petitioner's inability to submit a reply due to bonafide reasons and unavoidable circumstances? (Question of law and fact, turning on Section 144 and Section 148). Assessee's Contentions: The petitioner argued that she could not submit her reply to the notices issued under Section 148 and Section 142(1) of the Act, as well as the show cause notice, due to bonafide reasons and sufficient cause. She submitted that if the impugned assessment order is set aside and the matter is remitted back to the stage of permitting her to file her reply, she would do so and the respondents could reconsider the matter in accordance with law. Revenue's Contentions: The revenue contended that there is no merit in the petition and it is liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 144,Section 148,Section 142(1)

AI-generated summary — verify with the full judgment below

- 1 -

NC: 2024:KHC:32500 WP No. 2559 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 2559 OF 2024 (T-RES) BETWEEN:

SMT. BHAGYALAKSHMI, SRINATH DAMODAR, AGED ABOUT 51 YEARS, 101, NARAYANASHETTY ROAD, SHIVAJINAGAR, BANGALORE 560 001. PAN NO. DANDPD7704N …PETITIONER (BY SMT. BORKAR SHEETAL SUBODH.,ADVOCATE)

AND:

1.

THE PRINCIPAL COMMISSIONER OF INCOME TAX , BENGALURU - 1 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU 560 095.

2.

THE INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTER, DELHI – 110 001.

3.

THE INCOME TAX OFFICER, WARD 1(2)(1), BANGALORE BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU 560 095. …RESPONDENTS (BY SRI.M DILIP.,ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I) QUASH THE IMPUGNED EX-PARTE ASSESSMENT ORDER DATED 08/02/2023, BEARING DIN AND ORDER NO. ITBA/AST/S/147/2022-23/1049544962(1) PASSED U/S 144 R/W SECTION 148 OF THE ACT, IN RESPECT OF THE RELEVANT ASSESSMENT YEAR 2018-19, UNDER THE INCOME TAX ACT, 1961, VIDE ANNEXURE-F, PASSED BY THE *R2 AUTHORITY AND ETC.,

THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

* Corrected vide Court order dated: 01.08.2025.

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

- 2 -

NC: 2024:KHC:32500 WP No. 2559 of 2024

CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner has sought for the following reliefs:-

“ (i) Issue a Writ of Certiorari or in the like nature of quashing the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN &Order No.: ITBA/AST/S/147/2022-23/1049544962(10) passed U/s. 144 R/w. Section 148 of the Act, in respect of the relevant assessment year 2018-19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent *No.2 authority;

(ii) Issue Writ of Mandamus or in the like nature of writ of direction, directing the respondent authorities to refrain from initiating any kind of proceedings, with respect to the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN & Order No.: ITBA/AST/S/147/2022-23/1049544962(1); passed U/s. 144 R/w. Section 148 of the Act, in respect of the relevant assessment year 2018-19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent *No.2 authority;

(iii) Issue writ of Mandamus, directing the concerned respondent authorities to refrain any further activities and such initiatives in respect of coercive recovery in respect of impugned demand under the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN & Order No. : ITBA/AST/S/147/2022-

* Corrected vide Court Order dated: 01.08.2025.

- 3 -

NC: 2024:KHC:32500 WP No. 2559 of 2024

23/1049544962(1); passed U/s. 144R/w. Section 148 of the Act, in respect of the relevant assessment year 2018- 19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent *No2 authority;

(iv) Issue Writ of Prohibition, prohibiting the concerned respondent authorities in taking further action, measures or steps and such initiatives in respect of recovery in respect impugned demand under the impugned ex-parte assessment order dated: 08.02.2023, bearing DIN & Order No.: ITBA/AST/S/147/2022-23/1049544962(1); passed U/s. 144 R/w. Section 148 of the Act, in respect of the relevant assessment year 2018-19, under the Income Tax Act, 1961, vide ANNEXURE-F, passed by the respondent *No.2 authority;

(v) Issue any other writ, order or direction in favour of the Petitioner, which this Hon’ble Court may deem fit and proper in the facts and circumstances of the in the interest of justice.”

2.

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3.

Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not submit her reply to the Notice dated 30.03.2024 issued under Section 148 of the Income Tax Act, 1961 (for short ‘the I.T.Act’) nor submit documents in support of her claim, as a result of which, the respondents have proceeded to pas * Corrected vide Court Order dated: 01.08.2025

- 4 -

NC: 2024:KHC:32500 WP No. 2559 of 2024

the impugned ex-parte assessment order at Annexure-F, which deserves to be set aside. It is also submitted that the petitioner was not in a position to submit her reply to the notice issued under Section 142(1) of the I.T. Act and as such, if the impugned assessment order is set aside and the matter is remitted back to the respondents from the stage of permitting the petitioner to file reply to both the Notices issued under Section 148 of I.T.Act as well as the Notice issued under Section 142(1) of the I.T.Act, the petitioner would submit her reply along with documents and the respondents may be directed to reconsider the same in accordance with law.

4.

Per contra, learned counsel for the respondents – revenue submits that there is no merit and the same is liable to be dismissed.

5.

A perusal of the material on record will indicate that the petitioner did not submit her reply either to the Notice dated 30.03.2022 issued under Section 148 of I.T.Act and also to the Notices issued under Section 142(1) of the I.T.Act dated 09.05.2022 and 10.11.2022 respectively as well as to the show cause notice dated 24.01.2023, as a result of which, the

- 5 -

NC: 2024:KHC:32500 WP No. 2559 of 2024

respondents have passed the impugned ex-parte assessment order dated 08.02.2023, which deserves to be set aside.

6.

In the result, I pass the following:- ORDER

(i) Petition is hereby allowed.

(ii) The impugned order at Annexure-F dated 08.02.2023 passed by the *2nd respondent is hereby set aside.

(iii) The matter is remitted back the * 2nd respondent from the stage of the petitioner submitting her reply to the Notices issued under Sections 148 and 142(1) of the I.T.Act as well as to the show cause notice at Annexure-E, which shall be considered by the *2nd respondent and proceed further in accordance with law.

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

Srl.

* Corrected vide Court Order dated: 01.08.2025

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →