ARVIND MOTORS PVT LTD., vs. THE ACIT, TDS CIRCLE

WP/35505/2024HC KarnatakaKAHC01072853202409 April 2025Bench: S.R.KRISHNA KUMAR4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by reserving liberty in favour of the petitioner to file a fresh reply along with documents to the impugned intimations/notices within a period of four weeks from the date of the order. The Court directed the concerned respondents to consider the submitted reply and proceed further in accordance with law. The Court did not decide on the merits of the challenge to the orders dated January 17, 2024, and October 23, 2024. The operative direction was to allow the petitioner to submit a reply and for the respondents to consider it.

What were the facts?

The petitioner, Arvind Motors Pvt. Ltd., filed a writ petition before the High Court of Karnataka challenging an order dated January 17, 2024, passed under Sections 276B read with Section 278B of the Income Tax Act, 1961, and subsequent intimation letters dated October 23, 2024. These intimations pertained to assessment years 2018-19, 2020-21, 2021-22, and 2023-24. The petitioner sought to quash these orders and prevent coercive proceedings. The respondents are the Assistant Commissioner of Income Tax (TDS) and other Income Tax authorities. The matter was heard by the High Court.

What were the issues?

1. Whether the order dated January 17, 2024, passed under Sections 276B read with Section 278B of the Income Tax Act, 1961, and the subsequent intimation letters dated October 23, 2024, for assessment years 2018-19, 2020-21, 2021-22, and 2023-24, are liable to be quashed? (Question of law and fact) Assessee's contention: The petitioner sought to quash the impugned orders and prevent coercive proceedings. The specific grounds for challenge were not detailed in the provided text, but the relief sought indicates a dispute over the validity of the penalty proceedings. Revenue's contention: The revenue, represented by its counsel, agreed to consider any reply submitted by the petitioner to the intimations/notices.

Which sections of the Income-tax Act were involved?

Section 276B, Section 278B

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:15632 WP No. 35505 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.35505 OF 2024 (T-IT) BETWEEN:

ARVIND MOTORS PVT. LTD., SHRI.KISHOR RAO (PRINCIPAL OFFICER) REG. UNDER COMPANIES ACT ARVIND BUILDING, BALMATTA ROAD HAMPAKATTA, MANGALORE - 575 001. TAN BLRA03007E …PETITIONER (BY SRI. SHEETAL BORKAR, ADVOCATE) AND:

THE ACIT, TDS CIRCLE

(ASSISTANT COMMISSIONER OF INCOME TAX) MANGALORE – 575 001.

THE COMMISSIONER OF INCOME TAX (TDS) 7TH AND 8TH FLOOR,

BAGMANE BUILDING

EDC COMPLEX PATTO

PANAJI GOA 403 001.

THE CHIEF COMMISSIONER OF INCOME TAX (TDS) QUEENS ROAD

BANGALORE – 560 001. …RESPONDENTS (BY SRI. ARAVIND V. CHAVAN, ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER ISSUED ON DATED 17/01/2024 VIDE DIN NO.ITBA/COM/F/17/2023-24/10598051 39(1) ORDER PASSED U/S 276B, 276B R.W.S. 278B OF THE INCOME TAX ACT, 1961, VIDE ANN-D AND TO QUASH THE INTIMATION LETTER DATED

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

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NC: 2025:KHC:15632 WP No. 35505 of 2024

23/10/2024 ISSUED UNDER INCOME TAX ACT, 1961 VIDE ANN-G1, G2, G3 AND G4 FOR THE RELEVANT AY 2018-19, 2020-21, 2021-22 AND 2023-24 PASSED BY R1 AUTHORITY AND ETC.

THIS 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, the petitioner seeks the following reliefs:

“a) Issue a writ of mandamus or in the like nature of writ, directing the concerned competent respondent authority to quash the order issued on dated 17.01.2024 vide DIN No.ITBA/COM/F/17/2023-24/10598051 39(1) order passed u/s 276B, 276B r.w.s. 278B of the Income Tax Act, 1961; vide ANNEXURE-D and to quash the intimation letter dated 23.10.2024 issued under income tax act, 1961 vide ANNEXURE-G1, G2, G3 & G4 for the relevant AY. 2018-19, 2020-21, 2021-22 & 2023-24 passed by respondent no.1 authority.

b) 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 Order issued on dated 17.01.2024 vide DIN No.ITBA/COM/F/17/2023-24/10598051 39(1) order passed u/s 276B r.w.s. 278B of the Income Tax Act, 1961; vide ANNEXURE-D and to quash the intimation letter dated: 23.10.2024 issued under income tax act, 1961 vide Annexure-G1, G2, G3 & G4 for the relevant AY. 2018-19,

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NC: 2025:KHC:15632 WP No. 35505 of 2024

2020-21, 2021-22, 2023-24 passed by respondent no.1 authority.

c) Issue a Writ of Mandamus or in the like nature of writ, directing the concerned competent respondent authorities, not to proceed with any kind of coercive initiative against the petitioner, under the Income Tax Act, 1961.

d) Issue a Writ of Prohibition or any other writ of like nature, directing the respondent not to proceed with coercive steps by way of any proceedings of whatsoever in nature, till disposal of this Writ Petition; and

e) Pass such other or further orders as this Hon’ble Court may deems fit in the facts and circumstances of the case, in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

After arguing the matter for sometime, learned counsel for the petitioner submits that petition may be disposed of reserving liberty in favour of the petitioner to file fresh reply along with documents to the impugned intimations / notices at Annexures – G1, G2, G3 and G4 dated 23.10.2024 with a direction to the concerned respondents to consider the same and proceed further in accordance with law.

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NC: 2025:KHC:15632 WP No. 35505 of 2024

Per contra, learned counsel for the respondents submits that if the petitioner submits its reply to the aforesaid intimations / notices at Annexures – G1, G2, G3 and G4 dated 23.10.2024, the concerned respondents will consider the same and proceed further in accordance with law.

The said submission is placed on record.

In view of the aforesaid facts and circumstances and submissions made by both sides, I deem it just and appropriate to dispose of this petition reserving liberty in favour of the petitioner to submit fresh reply along with documents within a period of four weeks from today. If such a reply along with documents are submitted by the petitioner, the concerned respondents shall consider the same and pass appropriate orders, in accordance with law.

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

SV List No.: 2 Sl No.: 70

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