KARNATAKA ADVOCATES WELFARE FUND TRUSTEE COMMITTEE, vs. THE INCOME TAX OFFICER

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WP/35537/2024HC KarnatakaKAHC01072851202422 January 2025Bench: S.G.PANDIT5 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. It held that in the peculiar facts of the case, the petitioner-Trust should be given an opportunity to file objections to the notices issued under Section 148A(b). The Court also noted the petitioner's specific contention that they are exempted from income tax, and this issue necessarily needs to be decided by the first respondent. Consequently, the order passed under Section 148A(d) and the notice issued under Section 148 were quashed. The petitioner-Trust was granted three weeks from the date of the order to file objections to the Section 148A(b) notices. Thereafter, the respondent-Authorities were directed to proceed in accordance with the law. The issue of tax exemption for the petitioner was expressly left to be examined by the respondent-Authorities.

What were the facts?

The petitioner, Karnataka Advocates Welfare Fund Trustee Committee, filed a writ petition challenging notices issued under Section 148A(b) of the Income Tax Act, 1961, dated February 13, 2024, and March 1, 2024. They also challenged the consequent order dated March 20, 2024, passed under Section 148A(d), and a notice dated March 20, 2024, issued under Section 148 of the Act. The petitioner stated that due to unavoidable reasons, they could not file objections to the notices. They also contended that the notices were sent to a wrong email address, contributing to their failure to file objections. The respondent-Income Tax Officer argued that the petitioner received the notices but failed to file objections, and the notices were sent to the email address available in the department's database.

What were the issues?

1. Whether the petitioner-Trust should be granted an opportunity to file objections to the notices issued under Section 148A(b) of the Income Tax Act, 1961, given their contention of unavoidable reasons and incorrect email address for communication? 2. Whether the petitioner-Trust is exempted from income tax, and if so, whether this aspect needs to be examined by the respondent-authorities? Assessee's Contentions: The petitioner-Trust argued that due to unavoidable reasons, they could not file objections. They further contended that the notices were sent to a wrong email address, which led to their failure to file objections. The petitioner also asserted that they are exempted from income tax, and this exemption needs to be considered. Revenue's Contentions: The revenue contended that the petitioner-Trust received the notices but failed to file objections. They also submitted that the notices were sent to the email address available in the department's database. The revenue further stated that the order under Section 148A(d) was passed without objections from the petitioner.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:2625 WP No. 35537 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO. 35537 OF 2024 (T-IT) BETWEEN:

KARNATAKA ADVOCATES WELFARE FUND TRUSTEE COMMITTEE, CONSTITUTED UNDER SECTION 3 OF THE ADVOCATES WELFARE FUND ACT 1983 REP. BY ITS ASSISTANT SECRETARY PADMAVATHI G D/O LATE GOVINDA AGED ABOUT 47 YEARS KARANTKA STATE BAR COUNCIL OLD ELECTION COMMISSION BUILDING BANGALORE-560001. …PETITIONER (BY SRI. A. SHANKAR, SR. COUNSEL FOR SRI MADHUSUDHAN U. A., ADV.)

AND:

1.

THE INCOME TAX OFFICER WARD 1(2)(1) BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA BENGALURU-560095.

2.

THE PRINCIPAL COMMISSIONER OF INCOME TAX-1, BENGALURU BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA BENGALURU-560095. …RESPONDENTS (BY SRI.RAVIRAJ Y.V. AND SRI DILIP M., ADVS.)

Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA

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NC: 2025:KHC:2625 WP No. 35537 of 2024

THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASHING THE NOTICE DATED 13.02.2024 ISSUED UNDER SECTION 148A(B) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2020-21 BY THE RESPONDENT NO.1 BEARING DIN AND NOTICE NO. ITBA/AST/F/148A(SCN)/2023- 24/1060843566(1) HEREIN MARKED AS ANNEXURE - A1 AND ETC.

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

CORAM: HON'BLE MR JUSTICE S.G.PANDIT

ORAL ORDER

Heard learned senior counsel Sri.A.Shankar for Sri.Madhusudhan.U.A., learned counsel for petitioner and learned counsel Sri.Y.V.Raviraj and Sri.Dilip.M., for respondents. Perused the writ petition papers.

2.

Learned senior counsel Sri.A.Shankar for petitioner would submit that the petitioner-Trust is before this Court questioning the notices issued under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘1961 Act’) dated 13.02.2024 and 01.03.2024 respectively (Annexures-A1 and A2), consequent order dated 20.03.2024 passed under Section 148A(d) of 1961 Act

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NC: 2025:KHC:2625 WP No. 35537 of 2024

(Annexure-A3) as well as notice dated 20.03.2024 issued under Section 148 of 1961 Act (Annexure-A4).

3.

Learned senior counsel would submit that for the unavoidable reasons, petitioner-Trust has not filed objections and as the petitioner-Trust failed to file objections, the respondent-Authorities proceeded to pass order under Section 148A(d) of 1961 Act. Further, learned senior counsel would submit that the notices were apparently sent to wrong e-mail address that is one of the reasons for non-filing of objections by the petitioner-Trust.

4.

Learned counsel for the respondents on the other hand would submit that the petitioner-Trust having received the notice failed to file objections. He further submits that the notices were sent to the e-mail address available in the database of the Department. Further, it is submitted that the order at Annexure-A3 passed under Section 148A(d) of 1961 is without objections of the petitioner-Trust. Thus, he prays for passing appropriate order.

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NC: 2025:KHC:2625 WP No. 35537 of 2024

5.

Having heard the learned senior counsel for the petitioner-Trust and learned counsel for respondents and on perusal of the writ petition papers, I am of the view that in the peculiar facts of the present case, petitioner- Trust needs to be given an opportunity to file objections to Annexures-A1 and A2 notices issued under Section 148A(b) of 1961 Act and further whether the petitioner- Trust is exempted from tax or not needs examination by the respondent-Authorities.

6.

The petitioner-Trust has specifically contended that the petitioner-Trust is exempted from income tax and as such, said issue necessarily is to be decided by the first respondent.

7.

In the light of the above, the following: ORDER

a) Writ petition is allowed.

b) The order at Annexure-A3 bearing No.ITBA/ AST/F/148A/2023-24/1063020896(1) dated

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NC: 2025:KHC:2625 WP No. 35537 of 2024

20.03.2024 passed under Section 148A(d) of 1961 Act as well as Annexure-A4, notice bearing No.ITBA/AST/S/148_1/ 2023- 24/1063037342(1) dated 20.03.2024 issued under Section 148 of 1961 Act are quashed.

c) The petitioner-Trust is granted three weeks time from today to file objections to Annexures-A1 and A2 notices.

d) Thereafter, the respondent-Authorities are directed to proceed in accordance with law.

Sd/- (S.G.PANDIT) JUDGE

NC CT:bms List No.: 1 Sl No.: 38

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