HEMNATH PUSHPARAJ vs. INCOME TAX OFFICER

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WP/7774/2024HC KarnatakaKAHC01015198202427 March 2025Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the petition. It was an undisputed fact that the petitioner had submitted a reply along with documents to the notice issued under Section 148A(b) of the Income Tax Act, and that Respondent No. 1 had not considered this reply. Adopting a justice-oriented approach and to provide one more opportunity to the petitioner to submit his reply, the Court set aside the impugned orders and notices that were consequential to the notice issued under Section 148A(d). The matter was remitted back to Respondent No. 1 for reconsideration afresh from the stage of submitting the petitioner's reply to the show cause notice under Section 148A(b). 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 expressly did not decide on the merits of the assessment itself, focusing solely on the procedural lapse.

What were the facts?

The petitioner, Hemnath Pushparaj, filed a writ petition before the High Court of Karnataka challenging orders and notices issued by the Income Tax Department for Assessment Year 2015-16. The challenged actions include a notice under Section 148A(b) dated 23.03.2022, an order under Section 148A(d) dated 02.04.2022, and a notice under Section 148 dated 06.04.2022, all issued by Respondent No. 1. Additionally, the petitioner sought to quash an order under Section 147 r.w.s. 144B dated 24.01.2024 and a demand notice under Section 156 dated 24.01.2024, issued by Respondent No. 2. The core of the petitioner's grievance was that despite submitting a reply to the Section 148A(b) notice, the respondents failed to consider it, proceeding to issue further notices and orders.

What were the issues?

1. Whether the impugned order under Section 148A(d) and the subsequent notice under Section 148 are liable to be quashed on the ground that the petitioner's reply to the notice under Section 148A(b) was not considered by the respondent. Assessee's Contention: The petitioner argued that he had submitted a reply with supporting documents to the notice issued under Section 148A(b) of the Income Tax Act, 1961. However, the respondents failed to consider this reply, erroneously stating that the assessee had not responded. Therefore, the petitioner sought permission to submit a reply once again by setting aside the impugned orders and notices. The petitioner relied on the principle of natural justice and the need for a fair hearing. Revenue's Contention: The respondent submitted 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 148A(b),Section 148A(d),Section 148,Section 147,Section 144B,Section 156

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:13172 WP NO.7774 OF 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR WRIT PETITION NO.7774 OF 2024 (T-IT) BETWEEN:

HEMNATH PUSHPARAJ S/O PUSHPARAJ AGED ABOUT 42 YEARS, R/AT: G8 PEARL CORONET APARTMENT, 5TH MAIN, SUDDAGUNTEPALYA, CV RAMAN NAGAR BENGALURU - 560 093.

…PETITIONER (BY SRI. BALRAM R. RAO, ADVOCATE) AND:

1.

INCOME TAX OFFICER NON CORP WARD 17(6), BSNL TOWER NO.16, GREAM'S ROAD, CHENNAI, TAMIL NADU - 600 006.

2.

ADDITIONAL / JOINT / DEPUTY / ASSISTNAT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, DELHI, II FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE)

Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA

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NC: 2025:KHC:13172 WP NO.7774 OF 2024

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH AND SET- ASIDE THE IMPUGNED ORDER UNDER SECTION 148A(b) OF THE INCOME TAX ACT DATED 23.03.2022 IN DIN AND NOTICE NO. ITBA/AST/F/148A(SCN)2021-22/1041339895(1) VIDE ANNEXURE-A ORDER PASSED UNDER SECTION 148A(d) OF THE INCOME TAX ACT DATED 02.04.2022 IN DIN AND NOTICE NO. ITBA/AST/F/148A/2022-23/1042443225(1) VIDE ANNEXURE-C BY THE RESPONDENT NO.1 AS WELL AS NOTICE ISSUED UNDER SECTION 148 OF THE INCOME TAX ACT IN DIN AND NOTICE NO. ITBA/AST/S/148.1/2022-23/1042567359(1) VIDE ANNEXURE-D BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2015-16; AND ETC.

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. Quash and set-aside the impugned notice issued under section 148A(b) of the Income Tax Act dated 23.03.2022 in DIN and Notice No.ITBA/AST/F/148A(SCN)2021- 22/1041339895(1) by the respondent No.1 vide Annexure-A; order passed under Section 148A(d) of the Income Tax Act dated 02.04.2022 in DIN and Notice NO.ITBA/AST/F/148A/2022-23/1042443225(1) vide Annexure-C by the respondent No.1 as well as Notice issued under Section 148 of the Income Tax Act dated

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NC: 2025:KHC:13172 WP NO.7774 OF 2024

06.04.2022 vide Annexure-D by the respondent No.1 for the Assessment Year 2015-16; and ii. Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner's case and after examining the legality and validity thereof be pleased to quash and set- aside the impugned order passed under section 147 r.w.s. 144B of the Act dated 24.01.2024 in DIN and Order No.ITBA/AST/S/147/2023-24/1060081709(1) vide Annexure-W by the respondent No.2 as well as notice of demand issued under section 156 of the Act dated 24.01.2024 in DIN and Notice No.ITBA/AST/S/156/2023- 24/1060081854(1) vide Annexure-X for the Assessment Year 2015-16 by the respondent No.2." 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, though the petitioner had replied/responded to the notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 23.03.2022 along with supporting documents, the respondents have not considered the said reply/response by stating that the Assessee has failed to reply to the Notice issued under Section 148A(b) of the IT Act and therefore, the petitioner may be permitted to reply to the said

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NC: 2025:KHC:13172 WP NO.7774 OF 2024

notice once again by setting aside the impugned orders and notices passed/issued consequent to the notice dated 23.03.2022 issued under Section 148A(b) of the IT Act. 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 submitted his reply/response along with documents to the notice issued under Section 148A(b) of the IT Act and the respondent No.1 has not considered the reply filed by the petitioner. Under these circumstances, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner to give his reply to the notice issued under Section 148A(b) of the IT Act, I deem it just and appropriate to set-aside the impugned order/notice issued consequent to the notice issued under Section 148A(d) of the IT Act and remit the matter back to the respondents for reconsideration afresh in accordance with law. 6. In the result, pass the following: O R D E R (i) The petition is hereby allowed;

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NC: 2025:KHC:13172 WP NO.7774 OF 2024

(ii) Impugned Order at Annexure-C dated 02.04.2022; Notice at Annexure-D dated 06.04.2022; Demand Notice at Annexure-X dated 24.01.2024 and Assessment Order at Annexure-W dated 24.01.2024 are hereby set aside; (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply by the petitioner to the Show Cause Notice issued under Section 148A(b) of the IT Act at Annexure–A dated 23.03.2022. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent No.1, who shall consider the same and proceed further in accordance with law.

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

ARK List No.: 1 Sl No.: 60

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