KITHANNAHALLI CHANNIGARANGAPPA vs. DEPUTY COMMISSIONER OF INCOME TAX

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WP/35481/2024HC KarnatakaKAHC01074548202420 March 2025Bench: S.R.KRISHNA KUMAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the petition. It acknowledged that 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 his omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and his willingness to submit a reply if given another opportunity, the Court deemed it just and appropriate to set aside the impugned orders. The Court specifically quashed the assessment order under Section 147 read with 144 and 144B, the penalty orders under Section 271(1)(b) and 271(1)(c), and subsequent notices/orders. The matter was remitted back to the first respondent for reconsideration from the stage of submitting the petitioner's reply to the Section 148A(b) notice. Liberty was granted to the petitioner to submit additional pleadings and documents, which the respondent was directed to consider before proceeding further in accordance with law.

What were the facts?

The petitioner, Kithannahalli Channigarangappa Ramesh, filed a writ petition before the High Court of Karnataka challenging several notices and orders issued by the Income Tax Department for Assessment Year 2016-17. The primary challenge was to a notice issued under Section 148A(b) of the Income Tax Act, 1961, dated February 4, 2023, by the Deputy Commissioner of Income Tax. The petitioner claimed he never received this notice and was unaware of it, preventing him from submitting a reply or documents. Consequently, he also challenged the subsequent assessment order under Section 147 read with 144 and 144B, computation sheet, penalty orders under Section 271(1)(b) and 271(1)(c), and a notice of demand under Section 156, all dated March 20, 2024, and May 17, 2024.

What were the issues?

1. Whether the notice issued under Section 148A(b) of the Income Tax Act, 1961, dated February 4, 2023, for AY 2016-17, is liable to be quashed on the grounds that it was not received by the petitioner and he was unaware of it, thereby preventing him from submitting a reply and documents? Assessee's Contention: The petitioner argued that he did not receive the Section 148A(b) notice and was unaware of its issuance. He contended that his inability to respond was due to bonafide reasons, unavoidable circumstances, and sufficient cause. He sought an opportunity to submit his reply and documents if the impugned orders and notices were set aside. Revenue's Contention: The respondents argued 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 147,Section 144,Section 144B,Section 271(1)(b),Section 271(1)(c),Section 156

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:11846 WP No. 35481 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.35481 OF 2024 (T-IT) BETWEEN:

KITHANNAHALLI CHANNIGARANGAPPA RAMESH S/O CHANNIGARANGAPPA, AGED 53 YEARS, 7/1, BYANARAHALLI VILLAGE, HEROHALLI BYADARAHALLI, MAGADI MAIN ROAD, BANGALORE-560 091. …PETITIONER (BY SRI. K M SHIVAYOGISWAMY, ADVOCATE) AND:

1.

DEPUTY COMMISSIONER OF INCOME TAX DC/ACIT CIRCLE 6(1)(1), BMTC BUILDING,

80 FEET ROAD, 6TH BLOCK,

KORAMANGALA,

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.

3.

THE PRINCIPAL COMMISSIONER OF INCOME TAX-3, THE OFFICE OF THE PRINCIPAL

COMMISSIONER OF INCOME TAX-3,

BMTC BUILDING, KORAMANGALA,

BANGALORE – 560 095. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE)

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

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NC: 2025:KHC:11846 WP No. 35481 of 2024

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF CERTIORARI OR DIRECTIONS IN THE NATURE OF CERTIORARI TO QUASH THE NOTICE ISSUED UNDER CLAUSE (B) OF SECTION 148A OF THE INCOME TAX ACT, 1961 VIDE DIN AND NOTICE NO ITBA/AST/F/148A(SCDN)/2022- 23/1049417075(1) DATED 04.02.2023 BY THE FIRST RESPONDENT FOR AY 2016-17, VIDE ANNEXURE-B.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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 Writ of Certiorari or directions in the nature of Certiorari to Quash the notice issued under clause (b) of section 148A of the Income Tax Act, 1961 vide DIN: & Notice No: ITBA/AST/F/148A(SCDN)/2022-23/1049417075(1) dated: 04.02.2023 by the First Respondent for AY 2016-17, vide Annexure-‘B’.

ii) Issue Writ of Certiorari or directions in the nature of Certiorari to Quash the order passed under Section 147 R/w 144, 144B dated 20.03.2024 bearing No. DIN No. ITBA/AST/S/147/2023-24/1063025506(1) passed by the 2nd respondent in relation to the assessment year 2016-17 vide Annexure-‘C’.

iii) Issue writ of certiorari or directions in the nature of Certiorari to quash the Computation Sheet issued by the 2nd respondent in relation to the Assessment year 2016-17 bearing DIN & Document No.ITBA/AST/S/114/2023-24/1063025784(1) dated: 20.03.2024 vide Annexure-‘D’.

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NC: 2025:KHC:11846 WP No. 35481 of 2024

iv) Issue Writ of Certiorari or directions in the nature of Certiorari to quash the penalty order passed U/s 271(1)(b) by the 2nd respondent in relation to the Assessment year 2016-17 bearing DIN & Notice No.ITBA/PNL/f/271(1)(b)/2024-25/1064977838(1) dated: 17.05.2024 vide Annexure-‘E’.

v) Issue Writ of Certiorari or directions in the nature of Certiorari to quash the penalty order passed U/s 271(1)(c) by the 2nd respondent in relation to the Assessment year 2016-17 bearing DIN & Notice No. ITBA/PNL/f/271(1)/2024-25/1064977838(1) dated: 17.05.2024 vide Annexure-F.

vi) Issue Writ of Certiorari or directions in the nature of certiorari to quash the Notice of Demand issued under Section 156 of the Act dated 20.03.2024 issued by the 2nd respondent for the assessment year 2016-17 bearing DIN & Notice No. ITBA/AST/S/156/2023-24/1063025802(1) dated 20.03.2024 vide Annexure-G.

vii) Grant such other reliefs as this Honourable High Court may think fit including the cost of this writ petition.”

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 notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’) was not received by petitioner and he was

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NC: 2025:KHC:11846 WP No. 35481 of 2024

not aware of the notice and consequently, petitioner could not submit his 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 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

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NC: 2025:KHC:11846 WP No. 35481 of 2024

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 – C dated 20/03/2024 passed under Section 147 read with Section 144 read with Section 144B of the Income Tax Act, the order at Annexure – E dated 17/05/2024 passed under Section 271(1)(b) of the Income Tax Act and the order at Annexure – F dated 17/05/2024 passed under Section 217(1) (c) 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 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) The impugned notices / orders at Annexures – C, D, E, F and G are hereby set aside. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage

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NC: 2025:KHC:11846 WP No. 35481 of 2024

of submitting of reply to the Show Cause Notice under Section 148A(b) of the IT Act at Annexure–B dated 04.02.2023. (iv) Liberty is reserved in favor 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

SV List No.: 1 Sl No.: 120

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