RAMAKRISHNAIAH MANJUNATH vs. DEPUTY COMMISSIONER OF INCOME TAX

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WP/9151/2025HC KarnatakaKAHC01020293202504 April 2025Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. It noted that it was undisputed that the petitioner had not submitted a reply to the notice issued under Section 148A(b). However, accepting the petitioner's submission that the omission was due to bona fide reasons and unavoidable circumstances, the Court deemed it just and appropriate to grant one more opportunity. Consequently, the impugned orders and notices, specifically those dated 28.03.2023 (Annexures-E and F), 19.03.2024 (Annexures-H and J), and 26.09.2024 (Annexures-L-1, L-2, M-1, and M-2), were set aside. The matter was remitted back to the 1st Respondent for reconsideration from the stage of submitting a 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. No issues were expressly left undecided.

What were the facts?

The petitioner, Ramakrishnaiah Manjunath, filed a writ petition before the High Court of Karnataka challenging several orders and notices issued by the Deputy Commissioner of Income Tax (1st Respondent) for the assessment year 2016-17. These challenged actions include orders under Section 147, 148A(d), 271(1)(b), and 271(1)(c) of the Income Tax Act, 1961, along with consequential demand notices. The core issue arose because the petitioner failed to submit a reply to a notice issued under Section 148A(b) of the Act. The petitioner contended that this omission was due to him not being conversant and the notices being sent via email. The High Court considered the matter for preliminary hearing after hearing both sides.

What were the issues?

1. Whether the impugned orders and notices passed by the 1st Respondent under Sections 147, 148A(d), 271(1)(b), and 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2016-17 are liable to be quashed. Assessee's Contention: The petitioner argued that his failure to respond to the notice under Section 148A(b) was due to his lack of conversance and the notices being sent via email. He sought an opportunity to file a reply and contest the proceedings. Revenue's Contention: The judgment records that the revenue was represented by counsel and arguments were heard, but it does not explicitly detail the revenue's specific contentions against the petitioner's plea for a fresh opportunity. However, the fact that the impugned orders were passed implies the revenue's position that the petitioner's non-compliance warranted such action.

Which sections of the Income-tax Act were involved?

Section 147,Section 156,Section 271(1)(b),Section 271(1)(c),Section 148A(d),Section 148A(b),Section 148

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:14540 WP No. 9151 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 9151 OF 2025 (T-IT) BETWEEN:

RAMAKRISHNAIAH MANJUNATH SON OF RAMAKRISHNAPPA AGED ABOUT 52 YEARS, RESIDING AT 69, GARUDAKCHARPALYA, WHITEFIELD ROAD, MAHADEVAPURA POST, BANGALORE - 560 048 …PETITIONER (BY SRI. T. SURYANARAYANA, SENIOR ADVOCATE FOR SMT.TANMAYEE RAJKUMAR, ADVOCATE)

AND:

1.

THE DEPUTY COMMISSIONER OF INCOME TAX - CENTRAL CIRCLE 2(3), CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU-560 001.

2.

THE DIRECTOR GENERAL OF INCOME TAX (INVESTIGATIONS) BMTC,BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BENGALURU-560 095. …RESPONDENTS (BY SRI.M DILIP, ADVOCATE)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED

Digitally signed by KORLAHALLI BHARATHIDEVIKRISHNACHARYA Location: HIGH COURT OF KARNATAKA

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NC: 2025:KHC:14540 WP No. 9151 of 2025

19.03.2024 BEARING NO. ITBA/AST/S/147/2023-24/1063018032(1) (ANNEXURE H) PASSED BY THE 1ST RESPONDENT UNDER SECTION 147 OF THE ACT FOR THE ASSESSMENT YEAR 2016-17 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 the following reliefs:

" (a) Quashing the order dated 19.03.2024 bearing No. ITBA/AST/S/147/2023-24/1063018032(1) (Annexure H) passed by the 1st Respondent under Section 147 of the Act for the assessment year 2016-17; (b) Quashing the demand notice dated 19.03.2024 bearing No. ITBA/AST/S/156/2023-24/1063018181(1) issued by the 1st Respondent (Annexure J) to the Petition under Section 156 of the Act for the assessment year 2016-17; and

(c) Quashing of the order dated 26.09.2024 bearing No. ITBA/PNL/F/271(1)(b)/2024-25/1069226264(1) passed by the 1st Respondent (Annexure L-1) under Section 271(1)(b) of the Act for the assessment year 2016-17;

(d) Quashing of the demand notice dated 26.09.2024 bearing No. ITBA/PNL/S/156/2024-25/1069225467(1) issued by the 1st Respondent (Annexure L-2) under Section 156 of the Act for the assessment year 2016-17;

(e) Quashing of the order dated 26.09.2024 bearing No. ITBA/PNL/F/271(1)(c)/2024-25/1069226256(1) passed by the 1st Respondent (Annexure M-1) under Section 271(1)(c) of the Act for the assessment year 2016-17;

(f) Quashing of the demand notice dated 26.09.2024 bearing No. ITBA/PNL/S/156/2024-25/1069225464(1) issued by the 1st Respondent (Annexure M-2) under Section 156 of the Act for the assessment year 2016-17;

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NC: 2025:KHC:14540 WP No. 9151 of 2025

(g) Quashing of the order dated 28.03.2023 bearing No. ITBA/AST/F/148A/2022-23/1051515214(1) passed by the 1st Respondent (Annexure E) under Section 148A(d) of the Act for the assessment year 2016-17;

(h) Quashing of notice dated 28.03.2023 bearing No. ITBA/AST/SL 148_1/2022-23/1051515963(1) issued by the 1st Respondent (Annexure F) under Section 148 of the Act for the assessment year 2016-17;

(i) pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of the case, in the interests of justice and equity." 2. Heard learned Senior Counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that though several contentions have been urged by both sides in respect of their respective claims, however, it is an undisputed fact that the petitioner did not submit any reply to the notice dated 14.03.2023 vide Annexure-D issued by the respondents under Section 148A (b) of Income-tax Act, 1961, as a result of which, the respondent No.1 has proceeded to pass the impugned orders at Annexures-`E' and `F', both dated 28.03.2023 under Section 148A(d) of the Income-tax Act, followed by consequent notices, orders etc., all of which are assailed in the present petition.

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NC: 2025:KHC:14540 WP No. 9151 of 2025

4.

Learned Senior Counsel for the petitioner submits that the petitioner being an individual and not conversant, as such, the notices sent through E-mail were not responded by him and if an opportunity is provided, the petitioner will file a reply and contest the proceedings in accordance with law. 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 bona fide reasons and unavoidable circumstances, and as sufficient cause is shown by the petitioner, I deem it just and appropriate to grant one more opportunity to the petitioner to submit reply along with documents, by setting aside the impugned orders at Annexures-`E' and `F', both dated 28.03.2023, passed under Section 148A(d) of the Income-tax Act, and subsequent notice / orders, etc., and remitting 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.

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NC: 2025:KHC:14540 WP No. 9151 of 2025

6.

In the result, pass the following: ORDER (i) The Petition is hereby allowed. (ii) Impugned notices/orders at Annexures-E and F, dated 28.03.2023, Annexures-H and J dated 19.03.2024, Annexures-L-1, L-2, M-1 and M-2, dated 26.09.2024, 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 to the Show Cause Notice under Section 148A(b) of the IT Act at Annexure-F dated 28.03.2023.

(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

BK : List No.: 1 Sl No.: 28

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