SRI HOLALKERE BASAVARAJAPPA NAGARAJA vs. INCOME TAX OFFICER

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WP/26469/2024HC KarnatakaKAHC01056475202430 September 2024Bench: S.R.KRISHNA KUMAR7 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the petition. The Court noted that the impugned order at Annexure-A3 was an ex-parte order because the petitioner had not submitted a reply to the preceding notices. Adopting a justice-oriented approach and considering the petitioner's assertion that his omission to reply was due to bonafide reasons, unavoidable circumstances, and sufficient cause, the Court deemed it just and appropriate to set aside the impugned order at Annexure-A3 and the subsequent penalty notices at Annexures - A4, A5, and A6. The matter was remitted back to the stage of the petitioner submitting a reply to the notices dated 12.12.2023, 08.01.2024, 06.02.2024, 21.02.2024, and 28.02.2024. The respondents were directed to proceed further in accordance with law after providing the petitioner with sufficient and reasonable opportunity. The Court expressly did not decide on the merits of the assessment or penalties.

What were the facts?

The petitioner, Sri Holalkere Basavarajappa Nagaraja, filed a writ petition before the High Court of Karnataka challenging several notices and orders issued by the Income Tax Department for the assessment year 2016-17. These included a notice under Section 148A(b) dated 18/01/2023, an order under Section 148A(d) dated 24/02/2023, and a notice under Section 148 dated 27/03/2023, all issued by the Income Tax Officer, Ward-1, Chitradurga. Additionally, the petitioner challenged an order under Section 147 r.w.s 144, 144B dated 13/03/2024, and penalty notices under Sections 274 r.w.s 271(1)(b), 274 r.w.s 271(1)(c), and 274 r.w.s 271F, all dated 13/03/2024, issued by the National Faceless Assessment Centre. A notice of outstanding demand dated 02/05/2024 was also challenged.

What were the issues?

1. Whether the impugned order under Section 147 r.w.s 144, 144B dated 13/03/2024 (Annexure-A3) should be set aside to grant the petitioner an opportunity to submit a reply to earlier notices, considering the petitioner's claim of bonafide reasons and unavoidable circumstances for non-submission. Assessee's contention: The petitioner argued that due to bonafide reasons, unavoidable circumstances, and sufficient cause, he could not submit his reply to the notices dated 12.12.2023, 08.01.2024, 06.02.2024, 21.02.2024, and 28.02.2024. Therefore, the impugned order at Annexure-A3, which was passed ex-parte, should be set aside to allow him one more opportunity to submit his reply and contest the proceedings. Revenue's contention: The learned counsel for the respondents submitted that there is no merit in the petition and the same is 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,Section 144B,Section 274,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:40715 WP No. 26469 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 26469 OF 2024 (T-IT) BETWEEN:

SRI HOLALKERE BASAVARAJAPPA NAGARAJA AGED ABOUT 52 YEARS, S/O. LATE BASAVARAJAPPA, R/AT 5TH CROSS, SIDDARAMAPPA EXTENSION, HOLALKERE TALUK, CHITRADURGA-577 526. PAN AYLPN4924D, PREVIOUSLY AT NO.55, C.B. ROAD, PWD GOVERNMENT SCHOOL OPP., E DIVISION, HOLALKERE, HOLALKERE TALUK, CHITRADURGA DISTRICT-577 526. …PETITIONER (BY SRI. RAVI SHANKAR S V.,ADVOCATE) AND:

1.

INCOME TAX OFFICER WARD-1, CHITRADURGA-577 502.

2.

NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, INCOME TAX DEPARTMENT,

Digitally signed by ANAND N Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:40715 WP No. 26469 of 2024

MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003.

3.

THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-1, BMTC BUILDING, KORAMANGALA, BANGALORE-560 095. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(b) OF THE ACT, DATED 18/01/2023 BEARING DIN NO. ITBA/AST/F/148A(sCN)/2022- 23/1048880408(1), ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANN-A ii) QUASH THE ORDER UNDER SECTION 148A(d) OF THE ACT, DATED 24/02/2023, BEARING DIN NO ITBA/AST/F/148A/2022- 23/1050112981(1) ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANN-A1 iii) QUASH THE NOTICE UNDER SECTION 148 OF THE ACT DATED 27/03/2023 BEARING DIN NO ITBA/AST/S/148.1/2022-23/1051365458(1) ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANN-A2.

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

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NC: 2024:KHC:40715 WP No. 26469 of 2024

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

ORAL ORDER

In this petition, the 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 18/01/2023 bearing DIN No.ITBA/AST/F/148A(SCN)/2022- 23/1048880408(1), issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A.

ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under section 148A(d) of the Act, dated 24/02/2023, bearing DIN No.ITBA/AST/F/148A/2022-23/1050112981(1) issued by the Respondent No.1 for the assessment year 2016-17 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 Section 148 of the Act dated 27/03/2023 bearing DIN No. ITBA/AST/S/148_1/2022-23/1051365458(1) issued by the Respondent No.1 for the assessment year 2016- 17 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

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NC: 2024:KHC:40715 WP No. 26469 of 2024

under section 147 r.w.s 144, 144B dated 13/03/2024 bearing DIN No. ITBA/AST/S/147/2023- 24/1062564498(1) issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure - AЗ.

v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice under Section 274 r.w.s 271(1)(b) of the Act dated 13/03/2024 bearing DIN No.ITBA/PNL/F/271(1)(b)/2023-24/1062564635(1) issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure - A4.

vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice under Section 274 r.w.s 271(1)(c) of the Act dated 13/03/2024 bearing DIN No.ITBA/PNL/S/271(1)(c)/2023-24/1062564636(1) issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure - A5.

vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice under Section 274 r.w.s 271F of the Act dated 13/03/2024 bearing DIN No.ITBA/PNL/S/271F/2023- 24/1062564638(1), issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure - A6.

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NC: 2024:KHC:40715 WP No. 26469 of 2024

viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice of outstanding demand dated 02/05/2024 bearing DIN No. ITBA/RCV/F/17/2024- 25/1064596010(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure A7.

2.

Heard the learned counsels for the parties 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 his reply to the notices dated 12.12.2023, 08.01.2024, 06.02.2024, 21.02.2024 and 28.02.2024 and as such, the impugned order at Annexure-A3 dated 13.03.2024 deserves to be set aside in order to give the petitioner one more opportunity to submit his reply and contest the proceedings.

4.

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

5.

A perusal of the impugned order at Annexure-A3 dated 13.03.2024 will indicate that the petitioner has not submitted his

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NC: 2024:KHC:40715 WP No. 26469 of 2024

reply to the aforesaid notices and the impugned order is an ex parte order. Under these circumstances, adopting justice oriented approach and in the light of the specific assertion on the part of the petitioner that his inability and omission to submit his reply to the aforesaid notices was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate to set aside the impugned order at Annexure-A3 and the subsequent notices at Annexures - A4, A5 and A6 and remit the matter back to the stage of the petitioner submitting a reply to the aforesaid notices and to proceed further in accordance with law.

6.

In the result, the following: ORDER

A. The petition is allowed.

B. The impugned order and notices at Annexures - A3, A4, A5 and A6 are set aside.

C. The matter is remitted back to the petitioner submitting his reply to the notices dated 12.12.2023, 08.01.2024, 06.02.2024, 21.02.2024 and 28.02.2024 and to proceed further in

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NC: 2024:KHC:40715 WP No. 26469 of 2024

accordance with law by providing sufficient and reasonable opportunity to the petitioner.

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

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