M/S.GAYATHRI SAW MILL vs. THE INCOME TAX OFFICER

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WP/28078/2025HC KarnatakaKAHC01060284202509 October 2025Bench: S.R.KRISHNA KUMAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the petition. It was acknowledged that the petitioner had not submitted a reply to the Section 143(2) notice. However, 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 orders. The matter was remitted back to Respondent No. 1 for reconsideration from the stage of submitting the petitioner's reply to the Section 143(2) notice. Liberty was granted to the petitioner to submit additional pleadings and documents, which the respondent was directed to consider before proceeding in accordance with law. The Court did not expressly leave any issue undecided.

What were the facts?

The petitioner, M/s. Gayathri Saw Mill, filed a writ petition before the High Court of Karnataka challenging orders passed by the respondents for Assessment Year 2022-23. These included an order under Section 144 r.w.s 144B, and penalty orders under Sections 272A(1)(d), 270A, and 271AAC(1). The petitioner's counsel submitted that a notice under Section 143(2) dated 02.06.2023 was received by their tax consultant via email, but due to the consultant's oversight, the petitioner failed to file a reply or submit documents. The petitioner argued this was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and sought one more opportunity to contest the proceedings.

What were the issues?

1. Whether the impugned orders passed under Section 144 r.w.s 144B, and penalty orders under Sections 272A(1)(d), 270A, and 271AAC(1) for Assessment Year 2022-23 are liable to be quashed? (Question of law and fact) Assessee's Contention: The petitioner argued that their failure to respond to the Section 143(2) notice was due to bonafide reasons, unavoidable circumstances, and sufficient cause, as the notice and subsequent communications were missed by their tax consultant. They sought an opportunity to submit their reply and documents. Revenue's Contention: The respondent submitted that there is no merit in the petition and that it is liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 144,Section 144B,Section 143(2),Section 272A(1)(d),Section 270A,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:39942 WP No. 28078 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 28078 OF 2025 (T-IT) BETWEEN:

M/S. GAYATHRI SAW MILL, NO.41/2 MADRAS ROAD, K R PURAM BHATTARAHALLI, HOODI B.O, BANGALORE NORTH, BANGALORE - 560 049. PAN: AADFG5585D

REPRESENTED BY ITS PARTNER, SUBHASH PATEL, AGED ABOUT 45 YEARS, S/O M K PATEL, NO. 41/2, MADRAS ROAD, K R PURAM, BHATTARAHALLI, HOODI B.O, BANGALORE - 560 049 …PETITIONER (BY SRI. RAVI SHANKAR S.V., ADVOCATE)

AND:

1.

THE INCOME TAX OFFICER

WARD 4(2)(1),

BANGALORE - 560 095.

2.

NATIONAL FACELESS ASSESSMENT CENTRE, ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER

OF INCOME TAX/INCOME TAX OFFICER,

INCOME TAX DEPARTMENT,

MINISTRY OF FINANCE,

ROOM NO. 401, 2ND FLOOR,

E-RAMP, JAWAHARLAL NEHRU STADIUM,

DELHI - 110 003. …RESPONDENTS (BY SRI. E. I. SANMATHI, ADVOCATE)

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

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HC-KAR NC: 2025:KHC:39942 WP No. 28078 of 2025

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER PASSED UNDER SECTION 144 R/W SECTION 144B DATED 25.02.2024 BEARING DIN. ITBA/AST/S/144/2023-24/1061473874(1) PASSED BY THE RESPONDENT NO. 2 FOR THE ASSESSMENT YEAR 2022-23 HEREIN MARKED AS ANNEXURE-A AND ETC.,

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

In this petition, petitioner seeks for the following reliefs:-

"i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed U/s 144 r.w.s 144B dated 25/02/2024 bearing DIN: ITBA/AST/S/144/2023-24/1061473874(1) passed by the Respondent No. 2 for the assessment year 2022- 23 herein marked as Annexure - A.

ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 272A(1)(d) of the Act dated 22/03/2024 bearing DIN No. ITBA/PNL/F/272A(1)(d)/2023-24/1063174856(1) by the Respondent No. 2 for the assessment year 2022- 23 herein marked as Annexure - A1.

iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 272A(1)(d) of the Act dated 25/07/2024 bearing DIN No. ITDA/PNL/F/2700/2024-25/1067001781(1) by the

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HC-KAR NC: 2025:KHC:39942 WP No. 28078 of 2025

Respondent No. 2 for the assessment year 2022-23 herein marked as Annexure - A2.

iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 270A of the Act dated 25/07/2024 bearing DIN No.ITBA/PNLF/272(1)9d)-2024-25/1067002198(1) by the Respondent No. 2 for the assessment year 2022- 23 herein marked as Annexure - A3.

v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 274 r.w.s 271AAC of the Act dated 30/07/2024 bearing DIN No. ITBA/PNL/F/271AAC(1)/2024-25/1067140622(1) by the Respondent No. 2 for the assessment year 2022-23 herein marked as Annexure A4.

vi) 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 parties 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 notice issued by the respondents under Section 143(2) of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 02.06.2023 was received by

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HC-KAR NC: 2025:KHC:39942 WP No. 28078 of 2025

petitioner’s Tax Consultant through e-mail and the said notice along with all further notices went unnoticed by the said tax- consultant and hence the petitioner could not file reply/ documents and contest the proceedings. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the Section 143(2) 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 143(2) 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 143(2) notice was due to bonafide

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HC-KAR NC: 2025:KHC:39942 WP No. 28078 of 2025

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 – A dated 25.02.2024, passed under Section 144 r.w.s. 144B of the Income Tax Act, the order at Annexure-A1 dated 22.03.2024 passed under section 272A(1)(d) of the Income Tax Act, the order at Annexure-A2 dated 25.07.2024 passed under section 272A(1)(d) of the Income Tax Act, the order at Annexure-A3 dated 25.07.2024 passed under section 270A of the Income Tax Act, the order at Annexure-A4 dated 30.07.2024 passed under section 271AAC(1) of the Income Tax 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 143(2) 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 A, A1, A2, A3 and A4 are hereby set aside.

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HC-KAR NC: 2025:KHC:39942 WP No. 28078 of 2025

(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 143(2) of the IT Act dated 02.06.2023 (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

BMC List No.: 2 Sl No.: 41

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