SRI KSHETRA GANESHPURA vs. INCOME TAX OFFICER

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WP/14607/2024HC KarnatakaKAHC01028846202407 August 2024Bench: S.R.KRISHNA KUMAR7 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. It was an undisputed fact that the petitioner had not submitted a reply to the Section 148A(b) notice. The Court acknowledged the petitioner's assertion that this failure was due to bonafide reasons, unavoidable circumstances, and sufficient cause. Deeming it just and appropriate to provide another opportunity, the Court set aside the impugned order passed under Section 148A(d) (Annexure-B) and subsequent notices/orders. The matter was remitted back to the 1st respondent for reconsideration from the stage of submitting the petitioner's reply to the Section 148A(b) notice. The petitioner was granted liberty to submit their replies, responses, pleadings, and documents, and the respondent was directed to consider them, provide a reasonable opportunity, and proceed in accordance with the law. The impugned notices/orders at Annexures B, C, P, and Q were set aside.

What were the facts?

The petitioner, Sri Kshetra Ganeshpuram, Sri Mahaganapathi and Sri Durga Parvati Temple, represented by its Executive Director, filed a writ petition before the High Court of Karnataka. The petition challenged orders and notices issued by the Income Tax Department for Assessment Year 2016-17. Specifically, the petitioner sought to quash an order passed under Section 148A(d) and a notice under Section 148 of the Income Tax Act, 1961, issued by the 1st respondent. Additionally, the petitioner challenged an order passed under Section 147 read with Sections 144 and 144B, and a notice of demand under Section 156, issued by the 2nd respondent. The core of the petitioner's grievance was that a notice issued under Section 148A(b) dated 03.02.2023 was not received, preventing them from submitting a reply.

What were the issues?

1. Whether the impugned order passed under clause (d) of Section 148A of the Income Tax Act, 1961, and the subsequent notice issued under Section 148 of the Act for Assessment Year 2016-17 are liable to be quashed and set aside, considering the petitioner's claim of non-receipt of the Section 148A(b) notice and inability to respond. (Question of law and fact, turning on Section 148A and Section 148). 2. Whether the impugned order passed under Section 147 read with Sections 144 and 144B of the Act, and the notice of demand issued under Section 156 of the Act for Assessment Year 2016-17, are liable to be quashed and set aside. (Question of law and fact, turning on Section 147, Section 144, Section 144B, and Section 156). Assessee's Contention: The petitioner argued that the notice issued under Section 148A(b) dated 03.02.2023 was not received, and consequently, they were unaware of it and could not submit a reply or response. This omission was attributed to bonafide reasons, unavoidable circumstances, and sufficient cause. The petitioner requested an opportunity to submit their reply, and for the impugned orders and notices to be set aside and the matter remitted for reconsideration. 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 148,Section 147,Section 144,Section 144B,Section 156

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:31407 WP No. 14607 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 14607 OF 2024 (T-IT) BETWEEN:

SRI KSHETRA GANESHPURA, SRI MAHAGANAPATHI AND SRI DURGA PARVATI TEMPLE SRI MAHAGANAPATHY TEMPLE KATIPALLA, MANGALORE, DAKSHINA KANNADA - 575 030. REPRESENTED BY ITS EXECUTIVE DIRECTOR NAVEEN KUMAR, S/O B NARASIMHA SUVARNA, AGED ABOUT 57 YEARS, R/AT NO 3-12/6, LAKSHMI NARASIMHA SHENOY COMPOUND, OPP RAMAKRISHNA HIGHER PRIMARY SCHOOL, KONCHADY. MANGALURU, DAKSHINA KANNADA, KARNATAKA – 575 008. PAN NO AAGAS1671J …PETITIONER (BY SRI. BALRAM R RAO, ADVOCATE)

AND:

1.

INCOME TAX OFFICER WARD 1 (1), C R BUILDING, N G ROAD, ATTAWARA MANGALURU - 575 001.

2.

ADDITIONAL /JOINT/ DEPUTY / ASSISTANT 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.TIRUMALESH, ADVOCATE)

Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:31407 WP No. 14607 of 2024

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I) CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE IMPUGNED ORDER PASSED UNDER CLAUSE (D) OF SECTION 148A OF THE ACT DATED 15.03.2024 IN DIN & NOTICE NO. ITBA/AST/F/148A/2022- 23/1050775858(1) (ANNEXURE – B) AS WELL AS NOTICE ISSUED UNDER SECTION 148 OF THE ACT DT. 20.03.2023 IN DIN & NOTICE NO. ITBA/AST/S/148.1/2022-23/1050990400(1) (ANNEXURE – C) PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2016-17, AND II) CALLING FOR THE RECORDS OF THE PETITIONERS 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 144 R.W.S. 144B OF THE ACT DATED 20.03.2024 IN DIN AND NOTICE NO ITBA/AST/S/147/2023-24/1063044674(1) (ANNEXURE – P) AS WELL AS NOTICE OF DEMAND DATED 20.03.2024 ISSUED UNDER SECTION 156 OF THE ACT IN DIN & NOTICE NO. ITBA/AST/S/156/2023- 24/1063044816(1) ANNEXURE Q PASSED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2016-17 AND ETC.,

THIS WRIT 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:

“I) 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 clause (d) of section 148A of the Act dated 15.03.2024 in DIN & Notice No. ITBA/AST/F/148A/2022-

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NC: 2024:KHC:31407 WP No. 14607 of 2024

23/1050775858(1) (ANNEXURE – B) as well as notice issued under section 148 of the Act dt. 20.03.2023 in DIN & Notice No. ITBA/AST/S/148_1/2022-23/1050990400(1) (ANNEXURE – C) passed by the 1st Respondent for the Assessment Year 2016-17, 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 144 r.w.s. 144b of the Act dated 20.03.2024 in DIN & Notice No. ITBA/AST/S/147/2023-24/1063044674(1) (ANNEXURE – P) as well as notice of demand dated 20.03.2024 issued under section 156 of the act in DIN & Notice No. ITBA/AST/S/156/2023-24/1063044816(1) (ANNEXURE-Q) passed by the 2nd Respondent for the Assessment Year 2016-17,

iii) A Writ of Mandamus or a Writ in the nature of Mandamus, or any other appropriate Writ, Order or Direction under Article 226 of the Constitution of India ordering and directing the Respondents by themselves, their subordinate, servants and agents to withdraw and cancel impugned order passed under section 147 r.w.s 144 r.w.s. 144b of the Act dated 20.03.2024 in DIN & Order No.ITBA/AST/S/147/2023- 24/1063044674(1) (ANNEXURE–P) as well as notice of demand dated 20.03.2024 issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2023-24/1063044816(1) (ANNEXURE-Q) passed by the 2nd Respondent for the Assessment Year 2016- 17 and,

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NC: 2024:KHC:31407 WP No. 14607 of 2024

iv) A Writ of Prohibition or a Writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of the Constitution of India prohibiting and restraining the Respondents by themselves, their subordinate, servants and agents from taking any action in furtherance or consequent to impugned order passed under section 147 r.w.s 144 r.w.s. 144b of the Act dated 20.03.2024 in DIN & Order No ITBA/AST/S/147/2023-24/1063044674(1) (ANNEXURE-P) as well as notice of demand dated 20.03.2024 issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2023- 24/1063044816(1) (ANNEXURE–Q) passed by the 2nd Respondent for the Assessment Year 2016-17 and

v) Grant the interim relief in terms of prayer (iii) above and

vi) Issue such other order, writ or direction as this Hon’ble Court deems fit; and

vii) Direct the Respondents to pay the costs 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’), dated 03.02.2023 was not received by petitioner and he was not aware of the notice and consequently,

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NC: 2024:KHC:31407 WP No. 14607 of 2024

petitioner could not submit its 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 one more opportunity is granted, petitioner would submit reply

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NC: 2024:KHC:31407 WP No. 14607 of 2024

along with documents, I deem it just and appropriate to set aside the impugned order at Annexure-B dated 15.03.2023 passed under Section 148A(d) of the IT 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) Impugned notices / orders at Annexures B, C, P and Q 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-A dated 03.02.2023.

(iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient

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and reasonable opportunity to the petitioner and proceed further in accordance with law.

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

BMC : List No.: 1 Sl No.: 38

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